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Paul Craig, who manages New Star’s Global Strategic Unit Trust, has overseen an “impressive performance” over the past two years, says Josephine Cumbo in the FT.
Since Craig took over this broadly based ‘fund of funds’ in September 2003, it has risen by 60%, against an Active Managed sector average of 26.2%.
Craig has achieved his success by investing largely in a mix of equity funds run by star fund managers. But the manager is now bearish on equities, and has spent the past few months diversifying his portfolio into alternative asset classes, such as wind farms and property.
One recent acquisition was a 2.5% stake in Renewable Energy Generation; Craig expects returns in the Aim-listed wind-farm company could rise to 15% a year.
On property, Craig is keen on the Berlin market, as demand there is growing faster than supply, and on emerging markets, but not the UK. He especially likes Bulgaria – “it comes across as Spain 20 years ago” – and recently took a 1.5% in the Black Sea Property fund.
He is also a Japan bull – and says he will remain overexposed to Japan because of his optimism on its economic prospects and continued improvements on corporate governance.
The fund is not cheap if you invest directly, with an upfront charge of 5% and annual fee of 1.5%. But if you go via one of the fund supermarkets, such as Hargreaves Lansdowne, you can reduce this to 0.5% upfront and then 1.25% every year.
Contact: 0845-608 8704, www.newstarinvest.com
New Star Global Strategic Unit Trust top ten holdings
Name of holding % of assets
JOHCM North Atlantic SM Companies 4.5%
Sloane Robinson Euro IT 4.0%
Baillie Gifford Edinburgh WW Inv Trust 3.6%
Merrill Lynch World Mining IT 3.5%
Renaissance US Growth 3.4%
Allianz Dresdner Kleinwort Capital 3.0%
Merrill Lynch HG Capital 3.0%
Hansa Trust 2.6%
F&C Graphite Enterprise 2.5%
Eurazeo 2.5%
Published in Investments
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Annunziata Rees-Mogg
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