New Star Financial Opp Fund Share Discussion Threads

[jonwig] 16/4/2009 11:25

Citywire:

Guy de Blonay to run New Star Financial Opportunities investment trust

By Drazen Jorgic | 17:58:41 | 15 April 2009

Guy de Blonay (above) has replaced Nick Brind as manager of the New Star Financial Opportunities trust following Henderson's acquisition of New Star Asset Management.

The trust's chairman, Julian Tregoning, said the change will take effect immediately and he was delighted to bring such a renown financials fund manager on board.

A company statement said: 'The board wishes to thank Nick Brind, the outgoing investment manager, for all he has done for the company since taking over the company's portfolio in 2003, and they wish him success in his future career.'

At the market close on 15 April shares in the trust stood at 25p and were trading on a 22.5% discount.

Over the last 12 months the net asset value of the trust has fallen by 37.44% versus an FTA financials loss 46.97%. Its shares have fallen 50% over the same period.

In the same period de Blonay has kept losses on his open-ended New Star Global Financials fund down to 36.7% while the MSCI World Financials TR has fallen by 43.3%.

[jonwig] 29/3/2008 11:59

Ten largest holdings at 29 Feb 2008:

DnB NOR
UniCredito Italiano
Aviva
Chaucer Holdings, 8.5% CULS
Personal Group Holdings
Man Group
Dartmoor, preference shares
Legal & General Group
Banco Santander
Liontrust Asset Management

[jonwig] 26/1/2008 16:36

Hi Robsy ... can't help with INP, sorry - I sold in the market.
I see that a similar company, COT, has taken a tumble despite forecasting 'in-line'. Were INP lucky!!

[robsy2] 25/1/2008 10:17

Jonwig
I did see that they hold a fair bit of New Star which could be quite good from here on (up?).
Good luck!
On a sepearte note do you have any idea when we get paid out from Inspicio?

[jonwig] 24/1/2008 09:05

Positive news today on insurers, so I've added a few here.
Priced around par to NAV, unfortunately.

[robsy2] 22/1/2008 17:07

Jonwig
Thanks for the info, it looks good but, for better or worse, I have opted to go directly into Barclays instead.

[jonwig] 17/1/2008 19:51

Hi, Robsy.

The fund manager - I don't have a link, but this was mentioned in the Telegraph around Christmas as a decent way to enjoy the coming bounce, as you put it.
The list of portfolio companies is pretty wide spread with no direct exposure to dodgier stuff.

Divi should be sustainable by the low-cost gearing, though they don't give details of the terms.

[robsy2] 17/1/2008 18:38

This looks pretty good value compared to 6months ago, a nice , well diversified way to enjoy the bounce when it comes.
I like the lok of some of the bond holdings as well. It should also pay a pretty hefty divi.
Any idea what the fund manager is like?

[jonwig] 17/1/2008 08:58

Sovereign funds seeking financials
By Jonathan Boyd

Phil True, Credit Suisse' head of UK institutional equities, says financial stocks are likely to be saught out by so-called sovereign wealth funds this year.


Driving this possibility is the sheer size of the funds and their rapid growth.

True cites figures suggesting Asian foreign reserves could go from $3trn to $5trn five years from now, with China's reserves alone equal to the current total for Asian banks. Petrodollar assets will similarly grow.

Also changing is the asset makeup: the sovereign funds are shifting from fixed income into areas providing higher returns. True cites the China Investment Corporation's $3bn stake in the float of investment firm Blackstone as evidence of this shift.

"The hope for Western financial institutions is that they can have a reciprocal relationship and cultivate relationships within China to sell their own products and services within China."

"When the China Development Bank invested £1.5bn in Barclays shares at 720p in July 2007, during the bid for ABN, the rationale centred not just on the potential investment return, but also on 'training and talent management', on collaboration in commodities products, and on Barclays input into risk management, corporate governance and IT strategy and procurement. This is a model which is likely to become more commonplace."

True goes on to suggest this desire to take strategic stakes over the longer term means there could be reason to follow specific stocks: Standard Chartered, Barclays, HSBC, and Centrica.

UK property is another area that sovereign funds will find attractive, especially with yields rising in the current property market conditions.

[jonwig] 03/1/2008 12:07

NAV at 31 December 2007 was 72.13 pence - that's a 7% discount (sp 66.75p).
Portfolio list:

[jonwig] 30/11/2007 09:02

Bank stocks could be the stocks to lead markets out of the current volatility just as they have led them into this situation, says Paul Goacher, fund manager at EEA fund management.


He believes this could happen even as soon as the next six months. However Goacher says that the hedge fund he runs has not owned any banks recently while EEA overall has held few.

And he says that he will not buy banks until he is certain they have reached their low point and the interbank market opens up again, and is also underweight asset managers. However, Anthony Nutt, fund manager of the Jupiter Income Trust thinks there will be stock picking opportunities among UK financials which are down more than they should be because of pessimism among investors.

He suggests financials and other interest rate sensitive stocks have already discounted so much credit risk, that in a few months time when there is greater visibility the market is likely to rally off a lower base.

Goacher bought back mortgage lender Paragon in October which has since gone down in value because next year it will have do a rights issue to raise financing, as banks are reluctant to lend to each other.

However Goacher says Paragon is still reasonably good quality and believes the stock is worth 300p to 400p. Credit Suisse is also more positive and on Wednesday upgraded its recommendation from "Neutral" to "Outperform" and increased its price target from 145p to 175p.

And last week KBC Peel Hunt upgraded its recommendation on Paragon from "Sell" to "Buy." This is helping the stock to recover which last night closed up 4.52% or 6.25p at 144.5p.

Goacher says Lloyds TSB is good quality because it has been restructuring for seven to eight years and has no sub prime or US exposure. But its share price is still low because quality companies are being brought down by their sector.

But Goacher believes if the share price of such a stock did better then it might encourage other financials up.

He says currently the market is behaving in a sectoral manner, a view also held by Edward Bonham Carter, chief executive and chief investment officer at Jupiter, who says the market making little distinction between stocks and sectors.

But Goacher adds that occasionally you get a good stock which manages to do better than its peers. Today, for example, Alliance & Leicester is up 7.79% at 685p because investors have been encouraged by a positive trading statement, but many other financials are down.

[ptolemy] 21/11/2007 12:04

Jonwig,
Yesterday evening they issued circulars informing shareholders about the restructuring. They have some interesting proposals (wider mandate, shorting facility, change of index, annual auctions, discount mgt, increased fees!). Worth a read in my view.

Regarding cash - no. it's still invested and subject to day to day changes. However, the xcess cash is some £40 million and so barring an absolute calamity it should payout to ZDP shareholder 168.48p leaving the remained for NST shareholders.

[jonwig] 21/11/2007 11:36

Hi, Ptolemy.

Thanks ... I imagine the cash to redeem is now sitting on deposit somewhere safe.
My thinking is that sometime all the mess will be priced into the financial sector, and rather than try to pick individual stocks myself, NST will be a safer bet.
I'm not quite confident yet!!

[ptolemy] 21/11/2007 11:04

Jonwig,
I've been a long term ZDP holder. Redemption is December. Its less risky to buy after redemption because then you know exactly how much is the asset value of the ordinary shares. On the other hand the risk to the asset value of NST must be small.

[jonwig] 18/11/2007 16:20

ZERO DIVIDEND PREFERENCE SHARES ("ZDP Shares")
In issue: 24,675,000

A ZDP Shareholder had an initial capital entitlement of 100p per share at 29 August 2001. This entitlement increases daily to reach 168.48p at the redemption date of 11 December 2007.

ORDINARY SHARES
In issue: 61,500,000

The Ordinary Shares are geared by the ZDP Shares in terms of income and capital, where the ZDP Shares have a fixed entitlement to capital and no entitlement to income.

Dividends expected are 4.4p annually, ie. yield of 6.6% ... paid gross, I think, with 20%
tax to declare.

Latest info:

[jonwig] 18/11/2007 10:52

Mentioned in the press yesterday - time to buy??

[jonwig] 18/11/2007 10:51

NST vs UK Banks ...



20 March 08: NAV 56.8p, share price 56p, disc 1%