SHARES in New Star plummeted by over 40pc to a low of 82.25p early this morning - though had climbed back up to 103p as at 11:15am - after it said operating profits are expected to be "significantly lower" this year compared to 2007.
In a trading update, in advance of the publication of its preliminary results due on 20 March, the group stated that it was not optimistic about the outlook for 2008, citing depressed market conditions and the poor relative performance of it funds last year. Net outflows in the second half of last year were £0.5bn, compared to inflows of £2.3bn in the first half. New Star acknowledged that its poor performing European mutual funds, and some of its UK funds, were badly positioned for the combination of the credit squeeze and high natural resource prices experienced in the second half of ...
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