New Star Investment net asset value up but cautious due to Iran war
New Star Investment Trust PLC on Friday announced a higher net asset value and an unchanged interim dividend, as its investment manager said inflation may prove stubborn due to the ongoing war between the US and Israel against Iran.
The investment company focused on long-term capital growth said net asset value per share was 184.29 pence each as at December 31, up 8.0% from 170.56p at June 30.
NAV total return was 9.1% in the six months to December 31, which was a tad higher than the IA Mixed Investment 40-85% shares’ total return of 8.79%. It was also sharply better than the company’s NAV total return of 0.41% a year ago.
When New Star reported its annual results in October, it stated that it did not have a formal benchmark.
New Star noted that Donald Trump’s tariff rises announced back in April 2025 ‘caused nervousness but subsequent talks led to less punitive rates for most trading partners.’
It added: ‘Tariffs constrain trade but may ensure greater US economic security as companies shift to making components locally. In February 2026, the Supreme Court ruled Trump’s tariff measures illegal but Trump said he would impose tariffs by another route.’
The company declared an interim dividend of 1.70p per share, unchanged from a year prior.
Looking ahead, the firm’s investment manager, Brompton Asset Management Ltd, said: ‘In March 2026, US-led air strikes against Iran led to war in the Middle East. Markets responded to heightened risk in typical fashion as equities fell and some safe-haven assets rose. There are grounds, however, to remain positive on the prospects for equities overall despite the uncertainty although equities on lower valuations in Europe and emerging markets look more attractive than highly valued US stocks.
‘Inflation may prove stubborn because of President Trump’s tariff and immigration policies and a higher oil price in the wake of the US-Iran war. This may mean the pace of Federal Reserve monetary easing will be slower than expected. Your company’s investments in bond funds, dollar and sterling cash and low risk multi-asset funds provide diversification and may prove defensive at times of equity market falls.’
New Star shares rose 3.2% to 129.00 pence each on Friday morning in London.
Copyright 2026 Alliance News Ltd. All Rights Reserved.