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New Star posts double digit return

New Star Investment Trust’s total return was 12.06% for the year to 30th June 2016. This took the year-end NAV to 125.70p. Unfortunately the discount widened and the share price rose by just 3.4%. By comparison, the Investment Association’s Mixed Investment 40-85% Shares index gained 2.20%. Equity markets generated positive returns, with overseas performance enhanced in sterling terms as a result of the pound’s fall against other major currencies. The MSCI AC World Total Return and MSCI UK Total Return Indices gained 13.92% and 3.43% respectively while UK government bonds returned 13.50%. The directors recommend the payment of a final dividend in respect of the year of 0.3p per share (2015: 0.3p).

Holding some gold and investing cash in US dollars boosted returns – the weak pound was a major contributor to performance. Blackrock Gold & General was the portfolio’s best performer, gaining 76.27%. MI Brompton UK Recovery and Aberforth Geared Income fell 5.64% and 4.85% respectively which the manager attributes to high weightings in UK stocks that aren’t exporters. Wells Fargo China fell 6.71%, as investors remained cautious following China’s currency devaluations in August 2015 and January 2016, which led to sharp falls in Chinese equities. The six FP Brompton multi-asset funds all delivered positive returns during the year and outperformed their respective benchmarks.

NSI : New Star posts double digit return

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