Revamp for New Star Pacific Growth fund

27 October 2009

Henderson New Star is changing the investment objective and name of the New Star Pacific Growth unit trust, with the revamped fund looking to capture income as well as growth.

It will be renamed the New Star Asian Dividend Income unit trust and will be managed by Mike Kerley, director of pan-Asian equities at Henderson.

The changes, subject to unit-holder approval, include changing the investment objective to a fund seeking a total return that delivers both income and capital. The fund will also be given the power to utilise derivative strategies for investment purposes as well as efficient portfolio management, and the distribution frequency will change from half-yearly to quarterly distribution.

Finally, the annual management fee will be charged to the capital of the fund rather than the income of the fund.

The proposed changes reflect Kerley's belief that a portfolio of companies with a high dividend yield and those with dividend growth potential, combined with a disciplined derivative overlay, gives investors exposure to the Asian growth story but with lower volatility.

“The Asia Pacific region is no longer solely the preserve of investors seeking growth,” says Kerley. “After a decade of corporate restructuring and more prudent governance, it is also a region capable of generating steady, consistent streams of income for investors.

“This fund aims to capitalise on the long-term opportunities to be found throughout the region, by investing in companies offering an attractive yet stable dividend yield.”

Kerley, who has been managing Asian and emerging market equities since 1993, also manages the Henderson Horizon Asian Dividend Income fund.

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