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25 Feb 2011 07:00
NEW STAR INVESTMENT TRUST PLC
HALF YEAR RESULTS
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 31ST DECEMBER 2010
New Star Investment Trust plc (the 'Company'), whose objective is to achievelong-term capital growth, announces its consolidated results for the half yearended 31st December 2010. FINANCIAL HIGHLIGHTS 31st 30th % December June 2010 2010 Change PERFORMANCE Net assets (£'000) 76,208 67,972 12.1
Net asset value per Ordinary share 107.30p 95.70p 12.1
Mid-market price per Ordinary share 81.25p 70.00p 16.1
Discount of share price to net asset 24.3% 26.9% n/a value
608.97 510.67 19.2 FTSE World Index (total return, sterling adjusted) 4,111.90 3,370.06 22.0 FTSE All-Share Index (total return) Six months Six months ended ended 31st December 31st December 2010 2009 REVENUE Return per Ordinary share (0.16)p (0.13)p Dividend per Ordinary share - - TOTAL RETURN Net assets 12.1% 14.8% FTSE World Index 19.2% 26.0% INTERIM MANAGEMENT REPORT Chairman's Statement
Your Company generated positive returns over the half year to 31st December 2010, with total assets rising 12.1% to £76.2 million. This gain, however, lagged the broader markets, with the FTSE All-Share Total Return Index rising 22.0% and the FTSE World Total Return Index rising 19.2% in sterling. The return on cash was 0.3%. At the period end, the net asset value per Ordinary share was 107.30p. From the fund's launch in May 2000 to the period end it delivered a total return of 15.9%. The FTSE All-Share over the same period returned 44.3%. The principal reason for this underperformance has been the fund's recent cautious positioning, with cash accounting for a significant proportion of the portfolio.
The net revenue loss before tax for the period was £134,000. In common with previous years, your directors are not recommending payment of an interim dividend to shareholders.
Market review
After weakness over the summer amid investor concerns about US economic problems, global equities made consistent progress during the period. One factor was the Federal Reserve's willingness to respond to weak job creation data, which threatened to undermine the US economic recovery. After a series of dovish speeches, Ben Bernanke, the Fed chairman, announced a second programme of quantitative monetary easing in November. This announcement combined with positive economic news in late 2010 increased investors' risk appetites. Other factors included strong economic growth in emerging markets. There were, however, short bouts of nervousness caused by the fiscal crises in the eurozone's peripheral countries. After the Greek rescue in the spring, Ireland was bailed out in the autumn.
Geographically, the stockmarket gains were broadly spread, with Latin American markets the strongest, up 22.6% in sterling terms as a result of rising commodity prices. Of the developed markets, Europe excluding the UK returned 18.8%, the US returned 18.3% but Japan underperformed, returning 13.5%. Emerging Asia returned 18.9%. Commodity prices also affected sector returns, with basic materials and energy up 35.8% and 24.9% respectively. By contrast, defensive areas such as healthcare, utilities and telecommunications underperformed, rising 9.3%, 10.2% and 15.4% respectively.
Investor concerns about fiscal deficits and inflation were evident in bond markets. Gilts returned just 1.45% while Bank of America's sterling high-yield bond index returned 6.6%.
Portfolio review
Your Company committed more cash to markets during the period although it maintained a cautious position. The largest investments included Vallar, a company floated by Nat Rothschild, and the Fundsmith Equity Fund, the new fund launched by Terry Smith, former deputy chairman of Collins Stewart. Smaller investments included the PFS Brompton UK Recovery Unit Trust, the Wells Fargo China Equity Fund and All Star Leisure, a privately-owned bowling alleys company. Disposals included Prusik Asia and GWI Brazil.
Your Company ended the period with 57.9% of its assets in retail funds, 6.0% in ETFs, 5.8% in investment trusts, 3.8% in hedge funds, 7.3% in other securities and 19.2% in cash. Geographically, the biggest non-cash exposures were the UK, at 18.6%, emerging markets, at 16.8%, and Europe excluding the UK, at 9.6%. In asset class terms, the biggest non-cash holdings were in equities, at 53.3%, commodities, at 12.8%, and private equity at 5.4%.
Outlook
The strength of global economic growth in 2010 surprised many observers. Expansion in developing countries provided most momentum although G7 growth also surpassed consensus expectations in early 2010. Growth in the G7 may, however, moderate in 2011 in response to weaker inflation-adjusted money supply trends although the US may outperform the eurozone, where inflation-adjusted money supply trends have been weaker than average. US business investment is growing while higher productivity and increased working hours should lead to job creation. Strong growth in emerging economies, meanwhile, is fuelling inflation, leading to fears of overheating, and higher interest rates may cause the pace of expansion to slow markedly.
The most significant macroeconomic trend of 2011 is likely to be rising inflation in the G7 as a result of previous money supply growth. Commodity prices have risen strongly recently and businesses have become increasingly confident that such price rises can be passed on to consumers. In response to such trends, it is possible the Fed will start to tighten monetary policy in the summer. In financial markets, long-dated government bonds are likely to fare worst in such conditions. After healthy growth in the second half of 2010, equities may be affected initially by the weak trends in the inflation-adjusted money supply in the G7 relative to industrial output growth. Indications of slowing output growth combined with stable money supply trends may provide sufficient liquidity to fuel further growth in equity prices later in the year.
In such an environment, returns among stocks and sectors may diverge widely, emphasising the role that careful asset allocation will play in generating performance.
The unaudited net asset value at 31st January 2011 was 105.01p per Ordinaryshare. Geoffrey Howard-SpinkChairman24th February 2011 Directors report
In the six months to 31st December 2010 the net asset value per Ordinary share increased by 12.1% to 107.30p. In the same period the share price increased by 16.1% to 81.25p. This compares to increases of 22.0% and 19.2% respectively in the FTSE All Share Index and the FTSE World Index. Further details of the Company's performance may be found in the Chairman's Statement.
Investment objective
The Company's investment objective is to achieve long-term capital growth.
Investment policy
The Company's investment policy is to allocate assets to global investment opportunities through investment in equity, bond, commodity, real estate, currency and other markets. The Company's assets may have significant weightings to any one asset class or market, including cash.
The Company will invest in pooled investment vehicles, exchange traded funds, futures, options, limited partnerships and direct investments in relevant markets. The Company may invest up to 15% of its net assets in direct investments in relevant markets.
The Company will not follow any index with reference to asset classes, countries, sectors or stocks. Aggregate asset class exposure to any one of the United States, the United Kingdom, Europe ex UK, Asia ex Japan, Japan or Emerging Markets and to any individual industry sector will be limited to 50% of the Company's net assets, such values being assessed at the time of investment and for funds by reference to their published investment policy or, where appropriate, their underlying investment exposure.
The Company may invest up to 20% of its net asset value in unlisted securities (excluding unquoted pooled investment vehicles) such values being assessed at the time of investment.
The Company will not invest more than 15% of its net assets in any single investment, such values being assessed at the time of investment.
Derivative instruments and forward foreign exchange contracts may be used for the purposes of efficient portfolio management and currency hedging. Derivatives may also be used outside of efficient portfolio management to meet the Company's investment objective. The Company may take outright short positions in relation to up to 30% of its net assets, with a limit on short sales of individual stocks of up to 5% of its net assets, such values being assessed at the time of investment. The Company may borrow up to 30% of net assets for short-term funding or long-term investment purposes. No more than 10%, in aggregate, of the value of the Company's total assets may be invested in other closed-ended investment funds except where such funds have themselves published investment policies to invest no more than 15% of their total assets in other listed closed-ended investment funds.
Share capital
The Company's share capital comprises 305,000,000 Ordinary shares of 1p each, of which 71,023,695 (2010: 71,023,695) have been issued fully paid. No Ordinary shares are held in treasury, and none were bought back or issued during the six months to 31st December 2010.
Risk management
The principal risks associated with the Company that have been identified by the Board, together with the steps taken to mitigate them, are as follows:
Investment strategy: inappropriate long-term strategy, asset allocation and manager selection might lead to the underperformance of the Company. The Company's strategy is kept under regular review by the Board. Investment performance is discussed at every Board meeting and the Directors receive monthly reports on portfolio changes, asset values and performance.
Business conditions and general economy: the Company's investment returns are influenced by general economic conditions in the UK and globally. Factors such as interest rates, inflation, investor sentiment and the availability and cost of credit could adversely affect investment returns. The Board regularly considers the economic environment in which the Company operates. The portfolio is managed with a view to mitigating risk by investing in a spread of different asset classes and geographic regions.
Portfolio risks - market price, foreign currency and interest rate risks: the downward movement of investments contained in the portfolio would lead to a reduction in the Company's net asset value. A proportion of the Group's portfolio is invested in investments denominated in foreign currencies and movements in exchange rates can significantly affect their sterling value. It is the Board's policy to hold an appropriate spread of investments in order to reduce the risk arising from factors specific to a particular investment or sector. The Investment Manager takes account of foreign currency risk and interest rate risk when making investment decisions.
The Company does not normally hedge against foreign currency movements affecting the value of the investment portfolio, although hedging techniques may be employed in appropriate circumstances.
Investment Manager: the quality of the management team employed by the Investment Manager is an important factor in delivering good performance and the loss by the Investment Manager of key staff could adversely affect investment returns. With effect from the beginning of the calendar year the Company's portfolio has been managed by Gill Lakin. A representative of the Investment Manager attends each Board meeting. The Board is kept informed of any personnel changes to the investment team employed by the Investment Manager.
Tax and regulatory risks: a breach of sections 1158 to 1165 Corporation Tax Act 2010 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to United Kingdom corporation tax. A breach of the UKLA Listing Rules could result in suspension of the Company's shares, while a breach of company law could lead to criminal proceedings, or financial or reputational damage. The Board employs Brompton Asset Management LLP as Investment Manager and Phoenix Administration Services Limited as Company Secretary and Administrator to help manage the Company's legal and regulatory obligations. The Board receives a monthly financial report which includes information on the Company's compliance with section 1158.
Operational : disruption to, or failure of, the Investment Manager's and Administrator's accounting, dealing or payment systems or the Custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service.
Investment Management Arrangements and Related Party Transactions
In common with most investment trusts the Company does not have any executive Directors or employees. The day-to-day management and administration of the Company, including investment management, accounting and company secretarial matters, and custodian arrangements are delegated to specialist third party service providers.
Details of related party transactions are contained in the Annual Report. There have been no material transactions with related parties during the period which have had a significant impact on the performance of the Company.
Review of Investment Trust Rules
In December 2010 the results of the review of the current rules for taxation of Investment Trusts were announced. The original proposed changes to the Close Company Tax rules and changes to the Income Retention rules, which could have had serious adverse consequences for the Company, have been dropped. The Company can continue to operate in its current form.
By order of the Board
Phoenix Administration Services Limited24th February 2011
SCHEDULE OF TOP TWENTY INVESTMENTS AT 31STDECEMBER 2010
Holding Activity Bid-market % of Investment value portfolio £'000 New Star European Special Investment Fund 7,430 12.00 Situations Fund
Black Rock Gold & General Income Investment Fund 7,426 12.00 Fund
Investec Africa Fund Investment Fund 4,730 7.64
Occam Umbrella Asia Focus Fund Investment Fund 4,534 7.32
Polar Capital Global Technology Investment Fund 3,383 5.47 Fund
Atlantis China Fund Plc Investment Fund 3,241 5.24 Artemis UK Special situations Investment Fund 2,748 4.44 Fund Trojan Investment Fund Investment Fund 2,709 4.38 M&G Optimal Income Fund Investment Fund 2,650 4.28 Lyxor Gold Bullion Securities ETF ETF 2,433 3.93 Henderson Private Equity Investment 2,410 3.89 Investment Trust Company Aquilus Inflection Fund Investment Fund 2,394 3.87 Vallar Quoted Equity 2,220 3.59 iShares FTSE/Xinhua China 25 ETF ETF 2,182 3.53
Neptune Russia & Greater Russia Investment Fund 2,127 3.44 Fund
Fundsmith Equity Fund Investment Fund 1,541 2.49
PFS Brompton UK Recovery Unit Investment Fund 1,377 2.22 Trust
The Sierra Investment Fund Investment Fund 1,214 1.96
BH Global Investment Limited Investment 1,095 1.77
Company
Aberforth Geared Income Trust Investment 965 1.56
Company 58,809 95.02 Balance held in 12 investments 3,086 4.98 Total investments 61,895 100.00 The investment portfolio can be further analysed as follows: Equities 7,937 Convertible securities 598 Investment funds, investment companies 53,360 and ETFs 61,895
All the Company's investments are either unlisted or are unit trust/OEIC funds with the exception of Henderson Private Equity Investment Trust, iShares FTSE/ Xinhua China 25 ETF, BH Global Investment Limited, MAM Funds, Lyxor Gold Bullion Securities ETF (Exchange Traded Fund), Immedia Broadcasting, Hanson Westhouse Holdings and Vallar.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31STDECEMBER 2010 Six months ended 31st December 2010 (unaudited) Revenue Capital Total Return Return Return £'000 £'000 £'000 Notes INCOME Investment income 259 - 259 Other operating income 6 - 6 Total income 2 265 - 265 GAINS AND LOSSES ON INVESTMENTS Gains on investments at fair value through profit or loss - 9,002 9,002 Other exchange (losses)/gains - (285) (285) Trail commission - 31 31 265 8,748 9,013 EXPENSES Management fees 3 (274) - (274) Other expenses (125) - (125) PROFIT BEFORE FINANCE COSTS AND TAX (134) 8,748 8,614 Finance costs - - - PROFIT BEFORE TAX (134) 8,748 8,614 Tax 19 (397) (378) PROFIT FOR THE PERIOD (115) 8,351 8,236 EARNINGS PER SHARE Ordinary shares (pence) 4 (0.16) 11.76 11.60
The total column of this statement represents the Group's Statement of Comprehensive Income, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.
All income is attributable to the equity holders of the parent company. There are no minority interests.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31ST DECEMBER 2009 AND THE YEAR ENDED 30TH JUNE 2010
Six Months ended Year ended 31st December 2009 30th June 2010 (unaudited) (audited) Revenue Capital Total Revenue Capital Total Return Return Return Return Return Return £'000 £'000 £'000 £'000 £'000 £'000 Notes INCOME Investment income 232 - 232 420 - 420 Other operating income 12 - 12 17 - 17 Total income 2 244 - 244 437 - 437 GAINS AND LOSSES ON INVESTMENTS Gains on investments at fair value through profit - 8,175 8,175 - 9,397 9,397 or loss - 257 257 - 659 659 Other exchange gains - 78 78 - 120 120 Trail commission 244 8,510 8,754 437 10,176 10,613 EXPENSES Management fees 3 (235) - (235) (496) - (496) Other expenses (138) - (138) (267) - (267) PROFIT BEFORE FINANCE COSTS AND TAX (129) 8,510 8,381 (326) 10,176 9,850 Finance costs - - - (1) - (1) PROFIT BEFORE TAX (129) 8,510 8,381 (327) 10,176 9,849 Tax 36 19 55 46 (172) (126) PROFIT FOR THE PERIOD (93) 8,529 8,436 (281) 10,004 9,723 EARNINGS PER SHARE Ordinary shares (pence) 4 (0.13) 12.01 11.88 (0.40) 14.09 13.69
The total column of this statement represents the Group's Statement of Comprehensive Income, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the periods.
All income is attributable to the equity holders of the parent company. There are no minority interests.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31STDECEMBER 2010 (UNAUDITED) Share Share Special Retained capital premium reserve earnings Total £'000 £'000 £'000 £'000 £'000 AT 30TH JUNE 2010 710 21,573 56,908 (11,219) 67,972 Profit for the period - - - 8,236 8,236 Dividend paid - - - - - AT 31ST DECEMBER 2010 710 21,573 56,908 (2,983) 76,208 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31STDECEMBER 2009 (UNAUDITED) Share Share Special Retained capital premium reserve earnings Total £'000 £'000 £'000 £'000 £'000 AT 30TH JUNE 2009 710 21,573 56,908 (20,445) 58,746 Profit for the period - - - 8,436 8,436 Dividend paid - - - (497) (497) AT 31ST DECEMBER 2009 710 21,573 56,908 (12,506) 66,685 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE 2010(AUDITED) Share Share Special Retained capital premium reserve earnings Total £'000 £'000 £'000 £'000 £'000 AT 30TH JUNE 2009 710 21,573 56,908 (20,445) 58,746 Profit for the period - - - 9,723 9,723 Dividend paid - - - (497) (497) AT 30TH JUNE 2010 710 21,573 56,908 (11,219) 67,972
CONSOLIDATED BALANCE SHEET AT 31ST DECEMBER 2010
31st 31st 30th June December December 2010 2009 2010 (unaudited) (unaudited) (audited) Notes £'000 £'000 £'000 NON-CURRENT ASSETS Investments at fair value through profit or loss 61,895 51,623 48,902 CURRENT ASSETS Other receivables 1,043 173 68 Cash and cash equivalents 14,267 15,626 19,672 15,310 15,799 19,740 TOTAL ASSETS 77,205 67,422 68,642 CURRENT LIABILITIES Other payables (212) (448) (230) TOTAL ASSETS LESS CURRENT 76,993 66,974 68,412 LIABILITIES NON-CURRENT LIABILITIES (785) (289) (440) Deferred tax liability NET ASSETS 76,208 66,685 67,972 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS Called-up share capital 710 710 710 Share premium 21,573 21,573 21,573 Special reserve 56,908 56,908 56,908 Retained earnings 5 (2,983) (12,506) (11,219) TOTAL EQUITY 76,208 66,685 67,972 NET ASSET VALUE PER ORDINARY SHARE (PENCE) 6 107.30 93.89 95.70
This half year report was approved and authorised for issue by the Board on 24th February 2011.
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31ST DECEMBER 2010
Six months Six months Year ended ended ended 31st 31st 30th June December December 2010 2010 2009 (audited) (unaudited) (unaudited) £'000 £'000 £'000 NET CASH OUTFLOW FROM OPERATING ACTIVITIES (1,136) (103) (513) NET CASH OUTFLOW FROM SERVICING OF FINANCE - - (1) FINANCIAL INVESTMENT Purchase of investments (6,211) (9,074) (15,113) Sale of investments 2,227 4,854 14,948 NET CASH OUTFLOW FROM FINANCIAL INVESTMENT (3,984) (4,220) (165) EQUITY DIVIDENDS PAID - (497) (497) NET CASH OUTFLOW BEFORE (5,120) (4,820) (1,176) FINANCING FINANCING - - - DECREASE IN CASH (5,120) (4,820) (1,176) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Decrease in cash resulting (5,120) (4,820) (1,176) from cash flows Exchange movements (285) 257 659 Movement in net funds (5,405) (4,563) (517) Net funds at 1 July 19,672 20,189 20,189 NET FUNDS AT END OF PERIOD 14,267 15,626 19,672 / YEAR RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW FROM OPERATING ACTIVITIES Net return before finance 8,614 8,381 9,850 costs and taxation Gains on investments (9,002) (8,175) (9,397) Exchange differences 285 (257) (659) Capital trail commission (31) (78) (120) Net loss before finance (134) (129) (326) costs and taxation Rolled-up interest (28) - (112) Increase in debtors (981) (74) 19 Decrease in creditors (18) 28 (112) Taxation (6) (6) (102) Capital trail commission 31 78 120 NET CASH INFLOW FROM OPERATING ACTIVITIES (1,136) (103) (513)
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31ST DECEMBER 2010
1. Accounting policies
The consolidated half year financial statements comprise the unaudited results of the Company and its subsidiary, JIT Securities Limited, for the six months to 31st December 2010. The comparative information for the year to 30th June 2010 does not constitute statutory accounts under the Companies Act 2006. Full statutory accounts for the year to 30th June 2010 included an unqualified audit report, did not contain any statements under section 498 of the Companies Act 2006, and have been filed with the Registrar of Companies.
The half year financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', and are presented in pounds sterling, as this is the Group's functional currency.
The same accounting policies have been followed in the interim financial statements as applied to the accounts for the year ended 30th June 2010, which are prepared in accordance with IFRSs as adopted by the European Union.
2. Total income For the For the six For the six months months ended 31st ended 31st year ended December December 30th June 2010 2009 2010 £'000 £'000 £'000 Income from Investments UK net dividend income 37 - 23 UK unfranked investment income 194 86 182 Fixed interest income - 118 160 Interest on convertible loan stock 28 28 55 259 232 420 Operating Income Bank interest receivable 6 12 17 6 12 17 For the For the six For the six months months ended 31st ended 31st year ended December December 30th June 2010 2009 2010 £'000 £'000 £'000 Total income comprises Dividends 231 86 205 Interest 28 146 215 Other income 6 12 17 265 244 437 3. Management fees For the For the six For the six months months ended 31st ended 31st year ended December December 30th June 2010 2009 2010 £'000 £'000 £'000 Investment management 274 235 496 Performance fee - - - 274 235 496 The management fee is payable in arrears and is calculated at a rate of 3/16%per quarter of the total assets of the Company and its subsidiary after thededuction of the value of any investments managed by the Investment Manager (asdefined in the management agreement). The Investment Manager is also entitledto a performance fee of 15% of the growth in net assets over a hurdle of3-month Sterling LIBOR plus 1% per annum, payable six monthly in arrears,subject to a high water mark. The aggregate of the Company's management fee andany performance fee are subject to a cap of 4.99% of net assets in anyfinancial year (with any performance fee in excess of this cap capable of beingearned in subsequent periods). The performance fee will be charged 100% tocapital, in accordance with the Board's expectation of how any out-performancewill be generated. 4. Return per Ordinary share For the For the six For the six months months ended 31st ended 31st year ended December December 30th June 2010 2009 2010 £'000 £'000 £'000 Revenue return (115) (93) (281) Capital return 8,351 8,529 10,004 Total return 8,236 8,436 9,723 ' 71,023,695 71,023,695 71,023,695 Revenue return per Ordinary (0.16)p (0.13)p (0.40)p share 11.76p 12.01p 14.09p Capital return per Ordinary share
Total return per Ordinary share 11.60p 11.88p 13.69p
5. Retained earnings
The components of retained earnings are set out below:
31st 31st 30th June December December 2010 2009 2010 £'000 £'000 £'000 Capital reserve - realised (15,970) (8,856) (8,925) Capital reserve - revaluation 12,711 (4,229) (2,685) Revenue reserve 276 579 391 (2,983) (12,506) (11,219)
6. Net asset value per Ordinary share
31st 31st 30th June December December 2010 2009 2010 £'000 £'000 £'000 Net assets attributable to Ordinary shareholders 76,208 66,685 67,972 Ordinary shares in issue at end 71,023,695 71,023,695 71,023,695of period Net asset value per Ordinary 107.30p 93.89p 95.70p share 7. Related party transactions
There have been no related party transactions that have materially affected the financial position or performance of the Group.
OTHER INFORMATION
This announcement is not for publication or distribution to persons in the United States of America, its territories or possessions or to any US person (within the meaning of Regulation S under the US Securities Act of 1933, as
amended). Neither this announcement nor any copy of it may be taken or transmitted into Australia, Canada or Japan or to Canadian persons or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian or Japanese securities law. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe any such restrictions.
FORWARD-LOOKING STATEMENTS
This preliminary announcement contains certain forward-looking statements with respect to New Star Investment Trust PLC. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast.
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