New Star Asset Management suffered a 44% fall in operating profit in the first half of the year, as investors stripped approximately £1.1bn from its fund range.
Profit fell from £34m in H1 last year to just over £19m in the six months to 30 June, with revenue down 16% to £72.8m. Amid what New Star chairman John Duffield labelled the “toughest stockmarket conditions for more than five years”, the firm’s total assets under management fell £3.3m to £19.8bn in the first half. Net redemptions accounted for roughly £1.1bn of the decline, while market losses inflicted the remaining £2.2bn drop. New Star’s troubles have continued post H1, with AUM falling to £19.1bn at 27 August. The firm’s international and UK mutual funds are again suffering redemp...
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