DJ Annual Financial Report
New Star Investment Trust PLC (NSI)
Annual Financial Report
31-Oct-2025 / 17:20 GMT/BST
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NEW STAR INVESTMENT TRUST PLC
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE YEAR ENDED 30TH JUNE 2025
New Star Investment Trust plc (the 'Company'), whose current objective is to achieve total return through capital
growth and income, announces its results for the year ended 30th June 2025.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2025 2024 Change
PERFORMANCE
Net assets (GBP '000) 121,140* 137,861 (12.13)
Net asset value per Ordinary share 170.56p* 194.11p (12.13)
Mid-market price per Ordinary share 110.00p* 131.50p (16.35)
Discount of price to net asset value 35.5% 32.3% n/a
Total Return** 2.08% 11.69% n/a
IA Mixed Investment 40% - 85% Shares (total return) 5.57% 11.80% n/a
MSCI AC World Index (total return, sterling adjusted) 7.64% 20.61% n/a
MSCI UK Index (total return) 11.03% 13.16% n/a
1st July 2024 to 1st July 2023 to
30th June 2025 30th June 2024
Revenue return per Ordinary share 4,25p 4.05p
Capital return per Ordinary share (0.21)p 16.62p
Return per Ordinary share 4.04p 20.67p
TOTAL RETURN** 2.08% 11.69%
DIVIDEND PER ORDINARY SHARE
Interim paid April 2025 1.70p 1.70p
Proposed final dividend 1.85p 1.70p
3.55p 3.40p
B Share Redemption 24.00p _____-
RECEIVABLE BY SHAREHOLDERS 27.55p 3.40p
*After return of capital (B Shares)
** The total return figure for the Company represents the revenue and capital return shown in the Statement of Comprehensive Income before dividends paid, the B Share redemption payment and after deducting B Share issue costs, as a percentage of opening net assets. The total return performance basis is the industry standard and is considered a more appropriate measure than just the revenue return. This is an alternative performance measure.
CHAIRMAN'S STATEMENT
PERFORMANCE
Your Company's generated a total return of 2.08% over the year to 30th June 2025, leaving the net asset value (NAV) per ordinary share at 170.56p. By comparison, the Investment Association's Mixed Investment 40-85% Shares Index gained 5.57%. The MSCI AC World Total Return Index gained 7.64% in sterling while the MSCI UK All Cap Total Return Index rose 11.03%. Over the year, UK government bonds returned 1.42%. Further information is provided in the investment manager's report.
Your Company made a revenue profit for the year of GBP3.02 million (2024: GBP2.88 million).
RETURN OF CAPITAL
Following an extraordinary general meeting in July 2024, GBP17 million was returned to shareholders in August by way of a "B" share issue and a subsequent redemption of the shares at a price of 24p per B share. Following the scheme, your Company's total issued share capital and voting rights were unchanged. The scheme involved reducing your Company's holdings across the board with a view broadly to maintaining in percentage terms the asset allocation, including the allocation to cash. As a result, the portfolio's risk profile was broadly unchanged.
CHANGE OF INVESTMENT OBJECTIVE
At the annual meeting on 5th December, shareholders approved the proposal by your Board to change the investment objective from long-term capital growth to long-term total return through capital growth and income.
GEARINGS AND DIVIDEND
Your Company has no borrowings. It ended the year under review with cash representing 15% of its NAV and is likely to maintain a significant cash position. In respect of the financial year to 30th June 2025, your Directors recommend the payment of a final dividend of 1.85p per share, making a total for the year of 3.55p (2024: 3.4p).
DISCOUNT
During the year under review, your Company's shares continued to trade at a significant discount to their NAV. The Board keeps this issue under regular review.
OUTLOOK
In the autumn of 2025, equity markets appeared likely to benefit overall from central bank monetary easing. The most attractive opportunities appeared to be among lowly valued large companies in the UK, Europe excluding the UK and some emerging markets. High US equity valuations, however, appeared vulnerable to disappointment after the strong rises of recent years driven by investor enthusiasm for technology in general and artificial intelligence advances in particular. Your Company's cash and bond investments provide diversification should equity markets falter and as well as income to pay dividends.
NET ASSET VALUE
Your Company's unaudited NAV at 30th September 2025 was 180.56p per share.
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
Leading western central banks cut their policy interest rates over the year to 30 June 2025 in response to moderating inflation. The US Federal Reserve reduced its 5.25-5.5% rate by a half percentage point in September 2024 and then made quarter point cuts in November and December but then left the rate unchanged at 4.25-5% in response to near full employment and sticky inflation data. The Core Personal Consumption Expenditures Price Index, the Fed's preferred inflation measure, rose from 2.63% in June 2024 to 2.9% in July 2025. Inflation may rise further because of President Trump's immigration clampdown and import tariff increases. The President has criticised the Fed's refusal to ease policy further because he wishes to stimulate economic growth and weaken the dollar. Investors are nervous about this challenge to central bank independence.
Eurozone interest rates have fallen more rapidly. The European Central Bank cut its key policy rate by a quarter point on seven occasions over the year under review in response to falling inflation, taking the rate from 3.75% to 2%. In September 2025, the latest date for which data are available, inflation was slightly above target at 2.2%. Donald Trump ended the Pax Americana era when he told Europe's leaders they could no longer rely on the US for security. In Germany, the Chancellor, Friedrich Merz, announced welfare spending cuts while increasing infrastructure and defence spending.
Investors are concerned about high public sector borrowing and fiscal deficits in France, the UK and the US. Donald Trump's "Big Beautiful Bill" passed in the Senate after the vice president, JD Vance, cast his swing vote in favour. The measure extended the President's first term tax cuts, increased defence spending and cut benefits. The US trade deficit rose further but the President announced swingeing tariffs on US imports. Tariff revenues may benefit America's fiscal deficit but dollar weakness indicates investor unease. The Moody's credit ratings agency downgraded US government bonds although they remained amongst the safest investments according to the ratings.
UK policy interest rates reached a 5.25% cyclical peak in 2023 and were unchanged until August 2024 when the Bank of England announced the first of five quarter point cuts that in aggregate took the rate to 4% in September 2025. UK inflation rose from 2.0% in June 2024 to 3.8% in September 2025 as wage rises contributed to 4.7% services inflation and 2.8% goods inflation. The Bank eased policy despite above target inflation because economic activity levels were weak. Rachel Reeves, chancellor, faces tough decisions on taxes in her autumn Budget if she intends to narrow the budget deficit without further damaging economic activity.
Some emerging market economies faced significant US tariff rises but may benefit from higher growth rates and lower public sector borrowing relative to gross domestic product. Dollar weakness may also prove a catalyst for investors to buy emerging market equities, which were trading on lower valuations at your Company's year-end.
PORTFOLIO REVIEW
Your Company's total return over the year under review was 2.08%. By comparison, the Investment Association Mixed Investment 40-85% Shares sector, a peer group of funds with a multi-asset approach to investing and a typical investment in global equities in the 40-85% range, rose 5.57%. The MSCI AC World Total Return Index rose 7.64% in sterling while the MSCI UK All Cap Total Return Index rose 11.03%. Global bonds returned 0.46% in sterling while UK government bonds returned 1.42%.
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