| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 89.26 | -30 |
| Intrinsic value (DCF) | 43.31 | -66 |
| Graham-Dodd Method | 2.47 | -98 |
| Graham Formula | 56.54 | -56 |
New Star Investment Trust plc (NSI.L) is a UK-based closed-ended balanced mutual fund of funds managed by Brompton Asset Management LLP. Launched in 2000, the trust invests globally across public equity markets, targeting diversified sectors through equity, bonds, commodities, real estate, currencies, ETFs, and derivatives. The fund benchmarks its performance against the FTSE All-Share Total Return Index, offering investors exposure to a broad range of asset classes while leveraging professional fund management. With a market cap of approximately £72.4 million, NSI.L provides a diversified investment vehicle for those seeking balanced risk-adjusted returns. Its strategy of investing in pooled funds and alternative assets makes it a flexible option in the Financial Services sector, particularly for investors looking for global diversification without direct exposure to individual securities.
New Star Investment Trust plc presents a conservative investment profile with a low beta of 0.18, indicating lower volatility relative to the broader market. The trust’s diversified fund-of-funds approach mitigates single-asset risk, while its focus on global markets enhances growth potential. Financials show solid net income of £14.7 million and a healthy dividend yield, with a dividend per share of 27.4 GBp. However, its small market cap and reliance on external fund performance may limit scalability and introduce manager risk. The absence of debt is a positive, but the fund’s niche strategy may face competition from larger, more liquid investment trusts. Investors should weigh its stability against potential underperformance in bullish equity markets.
New Star Investment Trust plc operates in a competitive asset management landscape dominated by larger, more diversified trusts and ETFs. Its fund-of-funds model provides diversification but may lag behind direct equity investments during strong bull markets. The trust’s small size limits its ability to negotiate lower fees with underlying funds, potentially eroding returns compared to low-cost index trackers. However, its balanced approach—combining equities, bonds, and alternatives—offers a defensive posture during market downturns. The lack of leverage (zero debt) reduces risk but may also cap returns. Competitively, NSI.L must differentiate through active management and asset allocation, though its performance is heavily tied to the skill of Brompton Asset Management and the underlying funds it selects. Its UK focus contrasts with global peers, potentially limiting appeal for internationally oriented investors.