Not for release, publication or distribution in whole or in part in or into the United States, Australia, Canada or Japan.
New Star Asset Management Group PLC ("New Star") today issues the following
trading update in advance of publication on 28 September 2007 of its interim
results for the six months ended 30 June 2007.
Despite unsettled equity and bond markets in June, trading conditions in the
first half of 2007 were generally buoyant. The Group's assets under management
increased to £24.7 billion at 30 June 2007, up 17% from £21.1 billion at 31
December 2006, but slightly below the level reported in May 2007. At close of
business yesterday the Group's assets under management were £25.0 billion, up
18% from £21.1 billion at 31 December 2006.
Assets under management
| At 31 December 2006 £ billion |
At 30 June 2007 £ billion |
Increase over the six months | |
| UK retail funds | 9.7 | 11.1 | 14% |
| International mutual funds | 1.1 | 2.0 | 82% |
| Institutional | 8.1 | 9.0 | 11% |
| Alternative assets | 1.2 | 1.5 | 25% |
| Other | 1.0 | 1.1 | 10% |
| Total | 21.1 | 24.7 | 17% |
Net inflows of assets in the first half of 2007 were £2.3 billion compared to £
851 million in the first half of 2006. These included net retail inflows into
UK mutual funds of £1.1 billion, compared to £713 million in the first half of
2006, and net inflows into international mutual funds of £0.7 billion, compared
to £180 million in the first half of 2006.
Approximately 35% of New Star's mutual fund assets under management are
invested in property or fixed income. 47% of mutual fund net inflows in the
first half of 2007 were into these categories. Net inflows into equity mutual
funds increased from £364 million in the first half of 2006 to £970 million in
the first half of 2007.
Included within net inflows are inflows into New Star's International Property
Unit Trust, which raised a record £206 million at its launch in June.
On 11 July the pricing basis of the units in the UK Property Unit Trust was
switched from offer to bid. The adoption of a bid basis is normal practice in
the UK mutual fundindustry if there are net outflows from a fund. The price
differential between offer and bid bases (approximately 4.1%) for this fund
mainly reflects the transaction costs of buying and selling property, the
largest component of which is stamp duty at 4%. Since 6 July there have been
limited outflows from the UK Property Unit Trust and these have been more than
offset by inflows into the International Property Unit Trust. The assets of the
UK Property Unit Trust are £2.1 billion and its current holding of cash and
marketable securities is £535 million.
In addition to mutual fund inflows, there were in the first half of 2007 £0.5
billion of net inflows into other asset categories, principally alternative
assets and institutional.
Investment performance continues to be healthy. 38% of equity and bond mutual
fund assets under management were in funds in the top quartile of their
respective peer groups over the year to 30 June 2007 and 65% in the top two
quartiles. 80% of single-manager hedge fund assets were in hedge funds in the
top two quartiles relative to their Eurohedge peer groups for the five months
ended 31 May 2007. New Star's US institutional performance was ahead of the
benchmark MSCI EAFE index in the first half of 2007.
Current trading
New Star continues to maintain its sales momentum. Subject, as always, to
securities markets and unforeseen circumstances, New Star is well on course for
another year of strong growth.
Enquiries:
Citigate Dewe Rogerson
Anthony Carlisle (office) 020 76389571 (mobile) 07973 611 888
This announcement is not for publication or distribution to persons in the
United States of America, its territories or possessions or to any US person
(within the meaning of Regulation S of the US Securities Act of 1933, as
amended). Neither this announcement nor any copy of it may be taken or
transmitted into Australia, Canada or Japan or to Canadian persons or to any
securities analyst or other person in any of those jurisdictions. Any failure
to comply with this restriction may constitute a violation of United States,
Australian, Canadian or Japanese securities law. The distribution of this
announcement in other jurisdictions may be restricted by law and persons into
whose possession this announcement comes should informthemselves about and
observe any such restrictions.
Forward-looking statements
This announcement contains certain forward-looking statements with respect to
the financial condition, results of operations and businesses of New Star Asset
Management Group PLC. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon circumstances that
will occur in the future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed or implied by
these forward-looking statements and forecasts. Nothing in this announcement
should be construed as a profit forecast.
