The board of the New Star investment trust - now run by John Duffield's Brompton Asset Management - has predicted a pull-back in markets following the recent run higher.
The trust, which invests in a range of UK-domiciled funds including Evy Hambro's BlackRock Gold & General fund, has maintained a high position in cash over the last six months which has caused it to lag the rally in risk assets. Over the six months to end of 2012 the NAV rose 5.3%, versus a 6.4% gain for the FTSE World Total Return index and an 8.7% gain for the FTSE All Share. Meanwhile the share price fell 4.5% to 63.05p. The trust's chairman, Geoffrey Howard-Spink, said it has underperformed the wider market because of its high cash weighting, currently at 18.1%. "The company's...
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