New Star Asset Management has suffered over £700m in redemptions from retail investors since 30 June this year, as market volatility continues to have a "significant impact" on the business.
In its interim management statement released this morning, New Star revealed overall net outflows from the middle of the year until yesterday tipped over £1.5bn, pushing assets under management down from £19.8bn to £14.3bn. October and the first half of November has seen the sharpest exodus from retail investors, with £316m in redemptions over the period. As New Star struggles to maintain investor confidence, the firm has had to renegotiate financial covenants to "better accommodate" its current trading environment. While the company confirmed it has not been in breach of its covenant...
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