New Star UK Special Situations Fund to merge into UK Alpha Fund

Subject to FSA and investor approval, New Star will merge the New Star UK Special Situations Fund into the New Star UK Alpha Fund on 29 February 2008. The merger will more clearly differentiate New Star’s range of UK equity funds.

The £401 million New Star UK Alpha Fund has a strong performance record. It has returned 106.5% compared to 55.5% for the IMA UK All Companies sector since it launched on 12 November 2001. Since launch, the New Star UK Alpha Fund, which is managed by Tim Steer, ranks 15th out of 219 funds in the IMA UK All Companies sector.

James Ridgewell, manager of the £35 million New Star UK Special Situations Fund, will remain a member of the New Star UK equity desk and will assist Tim Steer in the management of the New Star UK Alpha Fund.

Mark Skinner, managing director, New Star Investment Funds, says: “New Star is taking action to improve performance for investors in the New Star UK Special Situations Fund. Investors in the New Star UK Special Situations Fund should be well served by Tim Steer, who has a strong long-term track record.”