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New Star High Yield Bond - new rating

By ROBERT HARLEY 13/10/2009

New Star High Yield Bond - new rating by robert harley
This fund experienced significant losses in 2008 and early 2009 as a result of a large weightings to high yield and financial bonds which were aggressively marked lower during the credit crisis. Negative news flow surrounding the future of New Star Group also resulted in outflows from the fund at a time of poor market liquidity. However the portfolio positioning outlined above has remained in intact and the fund has bounced back strongly with the broader recovery in credit markets. We believe this fund represents an attractive option for playing the credit rally, consequently existing investors should continue to hold.
 
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