New Star International (NSI), the £99m investment trust whose majority 59% shareholder is John Duffield, has made a £340,000 capital gains tax (CGT) provision after losing its investment trust status for two years. The company, which the former New Star Asset Management boss Duffield founded in 2000 to look after his family’s wealth, said it had regained investment trust status which protects its assets from CGT. In annual results it said: “Share purchases by two outside shareholders caused your company to be in breach of the investment trust tax regulations. Accordingly, your company lost its investment trust status for the 2024-2025 and 2025-2026 financial years. As a result, your company has had to make a provision of £340,000 for tax on capital gains for the 2024-2025 year. From 1 July 2026, the start of the current financial year, your company has regained its investment trust status.” The results showed a good year to 30 June under Duffield’s Brompton Asset Management with the fund of funds portfolio generating a 20.9% investment return, although its shares ended the year on a 32.9% discount.
David Batchelor said: “The standout from NSI’s results is how much it benefited from being in the right parts of the market. Polar Capital Global Technology more than doubled and remained its largest holding even after £4m of profit-taking, while the overweight positions in Asia and emerging markets also paid off. That helped NSI beat its multi-asset peer group, although its 12% cash weighting and lower-risk holdings inevitably held it back against strongly rising global equities. More awkward is the temporary loss of investment trust status, which has resulted in a £340,000 tax charge. The issue has now been resolved, but it draws attention to NSI’s unusual shareholder structure.”
Schroder BSI Social Impact (SBSI), the £61m investment trust facing a continuation vote in December, says its fund manager Better Society Capital is working on a proposal to buy the company’s high impact investment portfolio making up 83% of net assets. The plan requires the successful launch of a new private fund (PFLP) but could enable the company to offer some shareholders a cash exit from shares trading at a 24% discount, while other investors continue with their investment. The six-year-old company has been considering its future and how to solve the longstanding discount since July last year. Details are expected in the first quarter of next year. “The board therefore believes that allowing BSC some further time to develop their PFLP is in the best interests of shareholders and recommends that shareholders vote for continuation at the AGM on 17 December 2026.” The statement came in results for the year to 30 June.
David Batchelor said: “This looks a potentially neat solution to the competing demands of shareholders: those wanting liquidity could receive cash, while eligible professional investors could roll their exposure into the new vehicle. However, there is an important sting in the tail – any portfolio sale is expected to be struck at a discount to its prevailing net asset value (NAV), and there is no guarantee sufficient backing for the new fund will emerge.
“The results themselves underline why resolving the discount remains the priority. A 5% NAV total return was a marked improvement on last year’s 1.6% and marginally exceeded the CPI+2% target, while buybacks added 1.25p per share to NAV. Yet the share price fell 2.9% and the year-end discount widened to 31.4%.”
You’ve read the news. Now have your say. Which investment trusts, fund managers and ETFs deserve to win? You decide in the Investors’ Choice Awards 2026. Vote now.
