New Star Investment Trust (LON: NSI) returned 20.92% in the year to the 30th of June, lifting net asset value (NAV) per share to 202.70p. The trust holds a flexible global multi-asset portfolio, mostly through funds, and published unaudited final results today before the market opened.
NAV, the value of assets minus liabilities per share, rose 18.84% from 170.56p. The 20.92% total return is a different measure: revenue and capital return before dividends, as a share of opening net assets. A year earlier it was 2.08%.
The mid-market share price was 136.00p as at the 30th of June, up 23.63% from 110.00p twelve months before. That left a discount to NAV of 32.91% as at the 30th of June, against 35.5% a year earlier.
The result beat the IA Mixed Investment 40%-85% Shares sector, which returned 17.12%. It trailed the MSCI AC World index at 28.19% and the MSCI UK index at 21.86%.
Brompton Asset Management, the external manager, credits the largest holding, Polar Capital Global Technology, which gained 129.47%, and a heavy weighting to Asia ex-Japan and emerging market equities. Cash of 12.23% of NAV and bond funds held back returns in a rising market.
The manager’s report put the trade-off this way:
Your Company’s multi-asset portfolio includes investments in lower risk multi-asset funds, bond funds and cash and, in consequence, lagged rising equity markets but should prove more defensive in falling markets.
Investment Manager’s Report, Brompton Asset Management
The total dividend is held at 3.55p, including a proposed final of 1.85p. The final goes ex-dividend on the 19th of November and, if shareholders approve it at the AGM on the 2nd of December, is paid on the 11th of December. The trust has no borrowings.
On the discount, the Chairman said the Board keeps the issue under regular review, with no firmer plan set out.
The trust also lost investment trust tax status, which exempts capital gains from tax, for two years and took a £340,000 tax provision. The Chairman blamed share purchases by two outside shareholders. HMRC, the UK tax authority, confirmed status from the 1st of July.
Unaudited NAV was 202.39p as at the 30th of September.