New Star Asset Management announced a strong first half with net UK retail sales up 54% to £1.1bn for the six months to June 30.
Assets under management rose 17% over the period to £24.7bn while net revenue was up 39% to £86.5m. Operating earnings increased 58% to £48.1m.
In the UK market, New Star’s share of net retail sales was 17.2% while total UK funds totalled £11.1bn, up from £9.7bn at 31 December 2006. The group also had a strong first half for its international business with sales outside the UK up 313% to £743m.
The group managed to weather recent market turbulence reporting net inflows of £487m into UK retail funds between 1 July and 26 September including £172m of fund inflows from the transfer of Tilney’s funds to the group.
John Duffield, New Star chairman, comments: “We have had a record first half. We now face a somewhat more challenging environment. Subject to markets not deteriorating, we remain robust about our prospects for the full year and expect to continue to generate growth from our well diversified product range in the medium term.”
He highlighted the success of the New Star International Property fund which was launched during the period and is now £372m in size. New Star’s institutional business also performed well experiencing net inflows of £156m taking its assets under management to approximately £9bn. Highlights included significant inflows into specialist equity mandates from UK pension funds, life insurers and open-architecture investment groups.
Net inflows into the group’s expanding alternative assets business totalled £254m over the period, up from £72m in the corresponding time last year.
An interim dividend of 4p per share will be paid with a dividend per share of not less than 9p expected for the year as a whole.
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