New Star announces New Star Indian Equity Fund

New Star is delighted to announce that the New Star Indian Equity Fund will be launched on 9 June and will have a three-week fixed price offer period that will run to 12.00 noon on 27 June. During this period, investors will be able to benefit from a 1% discount on the 5% initial charge. The fund will seek to achieve medium-to-long-term capital growth for investors by accessing one of the world's largest and fastest growing economies.

Fund management

Given the importance of local knowledge in the complex and rapidly changing Indian market, the investments will be made after seeking non-binding advice provided by Tata Asset Management Limited (TAML), the Mumbai-based asset management subsidiary of the Tata Group. TAML will provide non-binding, non-exclusive investment advice.

The Tata Group is one of India's largest private sector conglomerates and has a presence across all major sectors of the Indian economy. Tata's reach stretches beyond India, with operations in more than 80 countries. In the UK, it is known for its acquisition of Corus, the steel maker, and its recent acquisition of Jaguar and Land Rover. Tata Asset Management is one of India's fastest growing investment managers, with approximately $7 billion of assets under management.

Why India?

The launch of the New Star Indian Equity Fund is the latest step in the expansion of New Star's retail emerging markets range and offers investors access to a country at the forefront of the new world economic order. The Indian economy has grown at an average of 8.8% per year over the past four years and is estimated to have grown 8.7% over the year to March 2008. India's economic growth is being fuelled by strong domestic consumption, which is being driven by a growing and affluent middle class, a low level of consumer debt and significant infrastructure spending. The country has a low penetration of goods and services in its domestic market, providing huge potential for future growth. India has a young, educated and English-speaking workforce that is attracting inward investment and is further boosting industrial and service sector growth. India has a relatively low exposure to the global economic slowdown because exports represented just 16.5% of gross domestic product in 2007. India also has a strong legal framework, a high level of corporate governance for an emerging market and one of the largest and most diverse stockmarkets in the world. New Star is delighted to offer investors access to India's considerable medium-to-long-term growth potential.

Mark Skinner, managing director, New Star Investment Funds, says:

"I am delighted to announce the details of the New Star Indian Equity Fund, which is being launched with a three-week offer period starting on 9 June 2008. The fund will give UK retail investors access to one of the world's strongest growth markets."

"At New Star, we believe that local knowledge of the Indian market will be key to generating long-term outperformance and we are delighted to be partnering with such a prestigious organisation as Tata."