New Star suffers £500m outflows in H2

The company conceded it may experience more outflows during the first half of 2008, expecting the depressed market conditions and fallout from the poor relative investment performance of principal products to continue. The group’s assets under management decreased to £23.1bn at 31 December, down 6.5% from £24.7bn at 30 June 2007. Due to the uncertainly, the New Star board decided to cut its 2007 dividend to 5p per share, down from the 9p per share forecast in April last year. New Star says its UK and European mutual funds struggled in the late part of last year as a result of poor pos...