“We turn our attention to European equities which in the main have been unloved and under-owned by international allocators recently. We are attracted to the lower valuations than that of the US and would expect to see European equities outperform at this stage of the cycle in the economic recovery. We have increased our commitment to European Equities by introducing the newly launched New Star Henderson European Special Situations Fund. We have faith in Richard Pease’s unconstrained fundamentally driven bottom-up stock selection approach. This acquisition was funded by reducing our exposure to government bonds.”