New Star: Diversification potential of international bricks and mortar

In a recent survey of intermediaries, 87% of respondents said clients with a moderate risk profile should consider holding at least 5% of their portfolios in international direct commercial property.

Almost 40% of respondents recommended a holding of more than 10%. Significantly, not a single respondent recommended a 0% weighting in international direct commercial property.

In April, New Star held a series of property conferences across the UK, generating record attendances for such events. Intermediaries who attended the conferences were asked for their views on international commercial property via a questionnaire. The feedback obtained from this survey provides clear evidence that intermediaries welcome the ability to include international direct commercial property in their clients’ portfolios. More than 700 intermediaries attended the conferences to learn about the recently-launched New Star International Property Fund, the first UK retail fund of its kind to offer exposure to international “bricks and mortar” commercial property.

Richard Wilson, UK retail marketing director at New Star, says: “We launched the New Star International Property Fund in response to intermediaries and investors looking to benefit from the diversification potential of commercial property, on an international scale. Feedback from intermediaries who attended the conferences shows they are happy to recommend that their clients hold significant holdings in international bricks and mortar.

“Interest in the new fund has been strong and all the indications so far lead us to believe that it could be one of the most popular fund launches in recent years.”