DJ Final Results for the Year Ended 30th June 2026
New Star Investment Trust PLC (NSI)
Final Results for the Year Ended 30th June 2026
29-Oct-2026 / 07:00 GMT/BST
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NEW STAR INVESTMENT TRUST PLC
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE YEAR ENDED 30TH JUNE 2026
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 2026.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2026 2025 Change
PERFORMANCE
Net assets (GBP '000) 143,967 121,140* 18.84
Net asset value per Ordinary share 202.70p 170.56p* 18.84
Mid-market price per Ordinary share 136.00p 110.00p* 23.63
Discount of price to net asset value 32.91% 35.5% n/a
Total Return** 20.92% 2.08% n/a
IA Mixed Investment 40% - 85% Shares (total return) 17.12% 5.57% n/a
MSCI AC World Index (total return, sterling adjusted) 28.19% 7.64% n/a
MSCI UK Index (total return) 21.86% 11.03% n/a
1st July 2025 to 1st July 2024 to
30th June 2026 30th June 2025
Revenue return per Ordinary share 4.03p 4.25p
Capital return per Ordinary share 31.66p (0.21)p
Return per Ordinary share 35.69p 4.04p
TOTAL RETURN** 20.92% 2.08%
DIVIDEND PER ORDINARY SHARE
Interim paid April 1.70p 1.70p
Proposed final dividend 1.85p 1.85p
3.55p 3.55p
B Share Redemption - 24.00p
RECEIVABLE BY SHAREHOLDERS 3.55p 27.55p
*After return of capital (B Shares) in 2025.
** 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 in 2024 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 generated a total return of 20.92% over the year to 30th June 2026, leaving the net asset value (NAV) per ordinary share at 202.70p. By comparison, the Investment Association's Mixed Investment 40-85% Shares Index gained 17.12%. The MSCI AC World Total Return Index gained 28.19% in sterling while the MSCI UK All Cap Total Return Index rose 21.86%. Over the year, UK government bonds returned 2.44%. Further information is provided in the investment manager's report.
Your Company made a revenue profit for the year of GBP2.86 million (2025: GBP3.02 million). The reduction was principally due to lower interest income.
GEARINGS AND DIVIDEND
Your Company has no borrowings. It ended the year under review with cash representing 12.23% of its NAV and is likely to maintain a significant cash position. In respect of the financial year to 30th June 2026, your Directors recommend the payment of a final dividend of 1.85p per share, making a total for the year of 3.55p (2025: 3.55p).
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.
INVESTMENT TRUST STATUS
Share purchases by two outside shareholders caused your Company to be in breach of the investment trust tax regulations. Accordingly, your Company lost its investment trust status for the 2024-2025 and 2025-2026 financial years. As a result, your Company has had to make a provision of GBP340,000 for tax on capital gains for the 2024-2025 year. From 1 July 2026, the start of the current financial year, your Company has regained its investment trust status.
OUTLOOK
In the early autumn of 2026, global financial market prospects appeared positive, with the most attractive stock market opportunities likely to be in Asia excluding Japan, emerging markets and Europe excluding the UK. Large UK companies with international operations also looked attractively valued although smaller UK companies with a domestic focus and UK government bonds may be vulnerable should the new UK chancellor fail to address the country's fiscal deficit and high public sector debt levels. Your Company's cash, bond and lower-risk multi-asset investments provide diversification should equity markets falter. These should provide income to pay dividends.
NET ASSET VALUE
Your Company's unaudited NAV at 30th September 2026 was 202.39p.
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
Inflation was significantly above some leading central bank targets over the year to 30th June 2026, with the result that interest rates remained higher than previously forecast. US inflation, as measured by the core personal consumption expenditures index, the Federal Reserve's favoured measure, was at 3.3% in June 2026, up from 2.8% in June 2025, while eurozone inflation rose from 2% to 2.8%. UK inflation eased from 3.6% to 2.6%.
As a consequence, official interest rates fell more slowly than during some previous rate-easing cycles. The Fed cut its rate by three quarters of a percentage point to 3.5-3.75% during the second half of 2025 but subsequently left it unchanged for the remainder of the period. The European Central Bank increased its key rate from 2% to 2.25% while the Bank of England cut Bank Rate by half a point to 3.75% in late 2025 but made no changes subsequently.
The main reason for increased inflation was the US-Israeli war against Iran and the closure of the Strait of Hormuz to oil and gas shipping, which left the oil price 40% higher in sterling during the year under review. The US responded by temporarily relaxing sanctions on Russian oil and depleting its strategic petroleum reserve to stabilise prices. In the longer term, increased supply from Venezuela, following the ousting of President Nicolas Maduro, the growth of renewable energy and advances in battery storage may cause oil prices to fall.
Higher inflation and the slow pace of monetary easing proved a headwind for bond markets, which returned just 0.62% in dollar terms although the sterling return was 3.89% as the dollar rose against the pound. Although high nominal bond yields appeared attractive, credit spreads, the excess return on corporate bonds compared to sovereign bonds of the same maturity, were low at around one percentage point. Credit spreads, which have not been this narrow since before the 2007-09 great financial crisis, offered insufficient compensation for the higher risk inherent in holding corporate bonds. Some commentators said public credit markets might be vulnerable to contagion from private debt markets, where lending standards appeared too lax, as witnessed by some significant defaults and the closure of private debt funds to withdrawals.
PORTFOLIO REVIEW
Your Company's total return over the year under review was 20.92%. 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 17.12%. Your Company gained more than the peer group mainly because of strong performance by Polar Capital Global Technology, its largest investment, and its high allocation to equities in Asia excluding Japan and emerging markets.
The MSCI AC World Total Return Index rose 28.19% in sterling over the year while the MSCI UK All Cap Total Return Index rose 21.86%. UK government bonds rose 2.44%. Your Company's multi-asset portfolio includes investments in lower risk multi-asset funds, bond funds and cash and, in consequence, lagged rising equity markets but should prove more defensive in falling markets.
Global technology stocks rose 51.2% in sterling over the year and Polar Capital Global Technology outperformed, gaining 129.47%. Your Company took profits in April 2026, selling GBP4 million of shares, yet Polar Capital Global Technology remained your Company's largest investment even after this reduction. The holding benefited from the manager's bias towards IT hardware stocks in preference to large technology companies such as Amazon, Microsoft, Google, Meta and Oracle, known as 'hyperscalers', and software stocks. The hardware suppliers are akin to the makers of picks and shovels in a gold rush and have a low exposure to the fortunes of any single platform or device.
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