New Star International Property Funds Suspended (November 2008)

Important information regarding New Star International Property Funds

New Star Investment Funds Limited, managers of the underlying assets of R19, R20 & R21 the FPIL New Star International Property Funds, have informed us that they took the decision to suspend dealing in these funds with effect from 25 November 2008. This is initially for a period of 28 days in accordance with rules set out by the Financial Services Authority (FSA), however they have submitted an application to the FSA for a modification of these rules and it is likely that the suspension period will be extended beyond 28 days and until the funds have sufficient liquid assets to meet redemption requests.

New Star stated that:

“Having explored all practical alternatives, it is with great reluctance that New Star, as manager of the fund, in agreement with Royal Bank of Scotland , the fund’s depositary, have decided to suspend dealing temporarily in the New Star International Property Fund until further notice.

As market conditions and investor sentiment continue to deteriorate, there has been a marked increase in the level of redemptions from the Fund, particularly in October and November. This has had a significant impact on the Fund’s liquidity. This suspension of dealing is designed to restore sufficient liquidity to the Fund for it to meet redemptions once it re-opens for dealing.”

As a direct result of the issues above, dealing in the mirror funds has also been suspended, effective from 26 November 2008, which was the last dealing price made available to us.