At the Annual General Meeting of New Star Asset Management Group PLC ('New Star' or the 'Group'), to be held at 12 noon today, John Duffield, chairman of New Star, will make the following statement:
"New Star continues to make strong progress. The Group's assets under management have increased to approximately £18 billion at yesterday's date, up from £16.8 billion at 31 December 2005. Net inflows of assets for the year to date are £856 million. These include net inflows into UK retail funds of £528 million, up 21% compared to £436 million in the corresponding period in 2005, and net inflows into international retail funds of £159 million, compared to £53 million.
Daily net inflows into retail funds have continued at a level well above last year notwithstanding the recent volatility in equity markets. Approximately 44% of New Star's retail assets under management are invested in property or fixed income. The proportion of net inflows in these categories is approximately 67%.
New Star's UK property fund, which now has assets under management in excess of £1 billion, continues to be our best selling retail product. In March, we launched a global property fund in response to demand from sophisticated international investors. Based on existing investor commitments and expressed intentions, we expect this fund to grow substantially by the end of this year.
On 18 May 2006 New Star purchased on market for cancellation 334,842 ordinary shares of 5p each at an average price of 385.8p per share. New Star may make similar such purchases in the future if appropriate opportunities arise.
Subject to movements in financial markets and to external events, New Star remains on course to achieve a significant advance in operating profits this year."
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Enquiries:
Polhill Communications
Julian Polhill 020 7655 0500 (office) / 07808 773577 (mobile)
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Important information:
This announcement is not for publication or distribution to persons in the United States of America, its territories or possessions or to any US person (within the meaning of Regulation S of the US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 inform themselves 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.