Over the second half of 2015 New Star Investment Trust delivered a 2.5% return on net assets which compares favourably to a -0.5% return on the IA Mixed Investment 40-85% Shares sector, a 1.7% return on the MSCI AC World Index and a -3.3% return on the MSCI UK Index.
The report says US equities outperformed, rising 6.86% in sterling, but the gain was wholly accounted for by the 6.90% rise in the dollar against the pound. This factor favoured New Star Investment Trust’s investments in Fundsmith Equity and Polar Capital Global Technology, which gained 14.71% and 8.35% respectively. Although the
Company’s overall investment in US equities was relatively low during the period, the majority of the cash was held in dollars, which also benefited performance in sterling terms.
Aberforth Geared Income gained 12.93% as UK smaller companies outperformed the commodity-heavy UK equity market. The oil price fell 40.94% over the period and the prices of many other industrial commodities also fell as a result of excess supply. Gold proved relatively defensive, falling 3.67%, but the impact was magnified in the performance of Blackrock Gold & General fund, which fell 13.36%, making it the worst performer during the period.
Asia excluding Japan and emerging market equities underperformed, falling 7.94% and 11.63% respectively in sterling. The Company’s investments in these markets also fell, with Wells Fargo China, 10.47%, the worst affected.
NSI : New Star benefits from dollar exposure