We believe investors in the New Star Higher Income Fund should consider switching to an alternative investment.
Following the merger of Henderson and New Star in April 2009, Graham Kitchen and Andrew Jones were appointed to manage the fund. Under their tenure the fund has performed in line with its peers, but the UK Equity Income sector is home to some of the finest fund managers in the UK and so we do not feel investors should settle for average performance. As we see no reason why the performance is likely to improve, we now believe investors should consider switching to the JO Hambro UK Equity Income Fund.
This fund is managed by Clive Beagles and James Lowen, who adopt a traditional equity income approach with a focus on yield from a concentrated portfolio. The cornerstone of their approach is to identify opportunities others have missed. They seek areas of the market which they believe have been overlooked, but have healthy dividend yields. Using this strategy, Clive Beagles and James Lowen aim to grow the fund’s income and generate long-term capital growth. This approach has proven highly effective and we believe it should deliver superior long-term returns. Investors should note that this fund has a performance fee. However, we believe it is worth paying a premium for the quality of the fund’s management.
Key Features of the JO Hambro UK Equity Income Fund
Following the merger of Henderson and New Star in April 2009, Graham Kitchen and Andrew Jones were appointed to manage the fund. Under their tenure the fund has performed in line with its peers, but the UK Equity Income sector is home to some of the finest fund managers in the UK and so we do not feel investors should settle for average performance. As we see no reason why the performance is likely to improve, we now believe investors should consider switching to the JO Hambro UK Equity Income Fund.
This fund is managed by Clive Beagles and James Lowen, who adopt a traditional equity income approach with a focus on yield from a concentrated portfolio. The cornerstone of their approach is to identify opportunities others have missed. They seek areas of the market which they believe have been overlooked, but have healthy dividend yields. Using this strategy, Clive Beagles and James Lowen aim to grow the fund’s income and generate long-term capital growth. This approach has proven highly effective and we believe it should deliver superior long-term returns. Investors should note that this fund has a performance fee. However, we believe it is worth paying a premium for the quality of the fund’s management.
What next?
If you are an investor in the New Star Higher Income Fund please read the Key Features for the JO Hambro UK Equity Income Fund and then consider your options. If you decide to switch and are registered for our online service, simply log into your account to place your instruction online. Alternatively you can call our dealers on 0117 980 9800. Please have your Master Password to hand.Key Features of the JO Hambro UK Equity Income Fund
