New Star Investment Trust PLC · LSE:NSI
New Star Investment Trust — Shareholder Meeting (November 2021)
29 slides from New Star Investment Trust's shareholder meeting presentation, November 2021
Slide 1: New Star Investment Trust – Annual General Meeting November 2021
New Star Investment Trust Prepared for the annual general meeting – November 2021
Slide 2: New Star Investment Trust - performance
New Star Investment Trust - performance Year ended 30th 3 years ended 5 years ended June 2021 % 30th June 2021 % 30th June 2021 % Net assets (£'000) 138,132 NSIT (NAV) 21.2 27.4 58.9 IA Mixed Investment 40-85% Shares 17.4 21.6 48.7 MSCI AC World 25.1 45.9 96.4 MSCI United Kingdom 17.5 1.3 28.0 Sourc
Slide 3: New Star Investment Trust – dividend history
New Star Investment Trust – dividend history New Star Investment Trust - dividend history 1.5 Dividends per share (GBp) 1.40 1.40 1.40 1.0 Pence per share 1.00 0.80 0.5 0.30 0.0 2015 2016 2017 2018 2019 2020 2021 NSIT financial year ending 30th June Source: Maitland Institutional Services Limited Pa
Slide 4: New Star Investment Trust – 2021 performance
New Star Investment Trust – 2021 performance Positive UK smaller companies outperformed and gained 49.77% and benefited the performance of Aberforth Split Level Income Trust and Chelverton UK Equity Income Strong performance from some emerging market equity funds including Stewart Investors Indi
Slide 5: New Star Investment Trust – performance
New Star Investment Trust – performance Comparative performance at 30.09.2021 Discrete period performance % 3 months 1 year NSIT (NAV) 0.93 21.01 IA Mixed Investment 40-85% Shares 1.34 16.85 MSCI AC World 1.48 22.71 MSCI United Kingdom 2.16 25.83 S&P 500 3.05 24.65 MSCI Emerging Markets -5.71 13.70
Slide 6: New Star Investment Trust – activity since end June 2020
New Star Investment Trust – activity since end June 2020 Sales financial year 2021 SPDR FTSE UK All Share exchange-traded fund sold in July 2020 Artemis Global Income sold in July 2020 Purchases financial year 2021 Matthews Asia ex-Japan Dividend purchased in July 2020 Vietnam Enterprise Inv
Slide 7: New Star Investment Trust – risk
New Star Investment Trust – risk 1 year 3 year 5 year Volatility at 30.09.2021 annualised annualised annualised volatility % volatility % volatility % NSIT (NAV) 7.9 10.1 8.6 IA Mixed Investment 40-85% Shares 8.0 11.4 9.4 IA Mixed Investment 20-60% Shares 6.4 9.1 7.5 MSCI AC World 11.1 14.3 12.0 MSC
Slide 8: New Star Investment Trust – asset allocation
New Star Investment Trust – asset allocation Absolute asset allocation 70 Allocation to region/asset class % 60 50 40 30 20 10 0 Cash UK Japan Europe Global Equity North America Commodities UK Fixed Interest O'seas Bonds Pacific ex Japan Emerging Markets Alternative Assets/Other Global Equity Altern
Slide 9: New Star Investment Trust – asset allocation Relative asset allocation
New Star Investment Trust – asset allocation Relative asset allocation -30 -20 -10 0 10 20 30 40 UK North America Japan Europe Pacific ex Japan Emerging Markets Global Equity Alternative Assets/Other Commodities UK Fixed Interest O'seas Bonds Cash NSIT look-through vs IA 40-85% Shares NSIT vs IA 40-
Slide 10: New Star Investment Trust – a diversified approach
New Star Investment Trust – a diversified approach Annualised percentage growth in GBP. Discrete calendar years shown. The performance of each of the asset classes is represented as follows: Cash is LIBOR GBP 3 Months; UK Govt Bond is Markit iBoxx Sterling Gilts Overall TR; UK Corp Bond is Markit iB
Slide 11: The Federal Reserve balance sheet has increased sharply following asset purchase commitment
The Federal Reserve balance sheet has increased sharply following the commitment to purchase assets “in the amounts needed” to combat the impact of the lockdowns
Slide 12: US budget deficit has increased following large-scale fiscal stimulus
US budget deficit has increased following large-scale fiscal stimulus
Slide 13: Recent inflation data are stronger than expected in US and UK
Recent inflation data are stronger than expected particularly in US and UK despite unemployment above pre-pandemic levels
Slide 14: US inflation expectations are above Fed’s target of an average of 2.0%
US inflation expectations are above Fed’s target of an average of 2.0%
Slide 15: High unemployment is typically deflationary but labour shortages led to wage inflation
High unemployment is typically deflationary but labour shortages in some sectors have led to wage inflation for some workers
Slide 16: Housing costs account for approximately 40% of headline US inflation data
Housing costs account for approximately 40% of headline US inflation data
Slide 17: US wage growth and percentage of employers planning to increase wages
US wage growth and percentage of employers planning to increase wages
Slide 18: Semi-conductor shortages have led to a shortage of new cars
Semi-conductor shortages have led to a shortage of new cars as manufacturers such as Ford and GM closed assembly lines
Slide 19: Second-hand vehicle prices have risen sharply given shortages of new vehicles
Second-hand vehicle prices have risen sharply given shortages of new vehicles
Slide 20: Oil and industrial commodity price increases are inflationary
Oil and industrial commodity price increases are inflationary
Slide 21: Chinese workers set to account for a diminishing proportion of the population
Chinese workers set to account for a diminishing proportion of the overall population and potentially leading to wage pressure and diminished labour cost advantage
Slide 22: Policy of “common prosperity” has led to political interference in quoted companies
Policy of “common prosperity” has led to political interference in quoted companies
Slide 23: Higher inflation and interest rate expectations in US may lead to a stronger dollar
Higher inflation and interest rate expectations in US may lead to a stronger dollar and capital outflows from emerging markets
Slide 24: Many new laws have increased the ease of doing business in India
Many new laws have increased the ease of doing business in India 2014 May Narendra Modi elected as prime minister August Foreign direct investment deregulation begins 2016 May Insolvency and bankruptcy code November De-monetisation of large denomination currency notes 2017 May Real estate regulation
Slide 25: Vietnam Enterprise Investments is benefitting from manufacturers moving production from China
Vietnam Enterprise Investments is benefitting from manufacturers moving production from China in search of lower costs
Slide 26: Gold may prove a safe-haven should markets fall
Gold may prove a safe-haven should markets fall
Slide 27: Gold demand may rise in an environment of negative real interest rates
Gold demand may rise in an environment of negative real interest rates as the opportunity cost of investing in nil-yielding assets diminishes
Slide 28: Strategy asset allocation themes
Strategy asset allocation themes Equities are supported by extraordinary monetary and fiscal easing Inflation may prove higher and more persistent than central bankers expect. Equities may however perform well in an environment of moderate inflation but longer dated bonds may fall Shorter-date
Slide 29: Important information
Important information The material in this presentation is for information purposes only. The views expressed here are the opinions of the fund manager at the time of writing and may change over time. Brompton does not provide investment or taxation advice. Please consult your financial advisor. The
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