The £5.5 million New Star Japan Fund will merge into the £105 million New Star Pacific Growth Unit Trust, which is managed by Ian Beattie.

Unlike the New Star Japan Fund, which is a single country fund, the New Star Pacific Growth Unit Trust is invested across a broad range of Asian countries and can, therefore, access a greater number of stocks.

The Pacific Growth Unit Trust has the ability to invest in growth markets such as China, Hong Kong, India, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam. As a result of its diversity, this merger should offer investors lower risk.

New Star will also merge the £7.7 million New Star North American Fund into the £12.6 million New Star American Portfolio, which is managed by Mark Harris.

As opposed to the New Star North American Fund, which invests in individual stocks, the New Star American Portfolio is a fund of funds. Investors should benefit from a broader spread of underlying investments and a greater degree of flexibility in the New Star American Portfolio.

A fund of funds approach accesses the expertise of several specialist fund managers and can shift style more quickly than a fund that invests in a portfolio of individual stocks. This is a key advantage when economic conditions and market circumstances change.

The New Star American Portfolio is predominantly invested in North America but has a more expansive geographical remit than the New Star North American Fund. From time to time, it may invest in funds covering Central and Latin America and this additional diversification should lead to lower risk for investors.

Mark Skinner, managing director of New Star Investment Funds, says, ‘The New Star Japan Fund and the New Star North American Fund were acquired from Edinburgh Fund Managers in 2003. By consolidating these small portfolios into more established funds with broader remits, New Star is seeking to improve performance for investors. Investors in these funds should be well served by Ian Beattie and Mark Harris.’

For more information visit www.newstaram.com