New Star shares take a tumble

Shares in New Star Asset Management fell 44% last week on news that the firm had net outflows of assets of £500m in the second half of last year. As a result assets under management had fallen 6.5% to £23.1 billion by December 31 from £24.7 billion in June. The company says because of the poor performance of its main products 2008 could see further outflows and dividends for the year have been cut from April’s forecast of 9p a share to 5p a share.