Download New Star Asia raises 325m - Investment International

New Star Asia raises 325m - Investment International
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This brings the total amount raised for New Star International guaranteed hedge funds since
September 2001 to more than $343 million, a record amount for guaranteed single manager
hedge funds.
New Star Capital Guaranteed Asian Hedge Fund has raised $32.5 million.
This brings the total amount raised for New Star International guaranteed hedge funds since
September 2001 to more than $343 million, a record amount for guaranteed single manager
hedge funds.
This Fund is designed to provide investors with absolute performance over a six-year
investment period and will seek positive returns through active investment by New Star Asset
Management in an Asian long/short portfolio exposed primarily to securities selected from large
and medium-sized companies in Hong Kong, Japan, Korea, Singapore, Taiwan and other Asian
countries.
Asian markets specialists Ian Beattie and Michelle Sanders will be the fund Advisers.
The investment strategy of The Fund is similar to that of the non-guaranteed New Star Asia
Renaissance Hedge Fund (managed by Ian Beattie and Michelle Sanders), which has produced
a return of 29.6 per cent between 1 December 1999 and 31 July 2002, compared to a fall of
-41.16 per cent in the MSCI Pacific Index.(2). For the year to date (31 July 2002) this fund has
risen by 4.3% compared to a fall of 0.5 per cent in the MSCI Pacific Basin Index.
New Stars outlook for Asia
Stock picking within a long/short fund is particularly suited to the current outlook for Asia.
Fundamental changes within Asian economies are producing clear winners and losers as a
result of increased competition and re-pricing of capital. This is forcing companies to improve
their performance in order to survive.
In Japan, we continue to find exciting corporate restructuring opportunities
The rest of Asia has the potential to begin a new credit cycle, while we believe the opposite is
true in the US. This is because investors and lenders are seeking safer opportunities at home
rather than in the West
Cyclically we remain cautious as we believe the strength seen in the first quarter may
evaporate in the second half as the US consumer finally throws in the towel
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New Star Asia raises 325m - Investment International
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The Capital Guarantee
Under the Capital Guarantee, HSBC Bank plc will ensure that investors will receive at least the
initial net subscription price of US $100 per share at the maturity date on 12 August 2008. In
addition, it is possible for the guarantee to increase.
For example, if the NAV per share at 31 August 2003 is US $120, the guaranteed amount would
be locked in at US $107 per share. The guarantee level will be reviewed at the end of each
August during the investment period. Please see Notes to Editors for fuller details.
Philip Goldsmith, Managing Director of New Star International, said:
In these uncertain market conditions, we are delighted on the success of this fund and the
support received from institutions and financial advisers throughout the world for what is often
regarded as a niche asset class.
This Fund offers investors diversification into Asian equity markets, which currently offers a
fantastic opportunity for a long/short strategy. The region is going through huge changes and
we have a team with 24 years combined experience of spotting winners and losers in Asia
through bottom-up stock selection.
The Fund also offers the opportunity to participate in a top performing hedge fund strategy with
the capital guarantee providing downside protection that many investors look for during market
volatility.
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