Fund Objective

To achieve long-term growth in both capital and income at a higher rate than the MSCI World Index.

View on Past Performance

Global equity markets were particularly hit hard in September, with the MSCI World Total Return Index falling by 9.8%*. The underlying characteristics and prospects of companies were ignored as concerns about tight credit availability, worsening economic data and the insolvency of Lehman Brothers dominated investor sentiment.The New Star Global Equity Fund fell by 11.9%*, proving to be slightly more resilient than the IMA Global Growth sector, which shed 12.5%*. With global economic conditions deteriorating rapidly, the oil price fell a further 13.1%, leading to a 29.8% drop in the basic resources sector. The most resilient sectors were healthcare and retailing, which both fell 8%.Bank of America agreed to acquire Merrill Lynch as the credit crisis threatened another of America's oldest financial institutions. Amgen, meanwhile, presented some strong trial data for its new drug for osteoporosis. The study showed that the drug could safely prevent spine and hip fractures. This data added to expectations that the drug could become a blockbuster.

Future Expectations

The third quarter earnings season opens in October, with investors focusing on the outlook for the remainder of 2008. Amid signs of global economic slowdown, the attention is likely to be on the speed at which companies' profits are declining.

Fund Details