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New Star optimistic over future

UK hedge fund New Star Asset Management says that it is on course for significant profit growth in the remainder of 2006, after the net flow of assets into the fund saw a significant increase in the first third of the year.

The fund has seen a net inflow of some £856 million so far this year, an increase of 21 per cent compared with the same period of 2005, pushing total assets under management up to £18 billion.

The company's international retail funds have also seen strong increased investment, with an extra £159 million added since January.

"Daily net flows into retail funds have continued at a level well above last year, notwithstanding the recent volatility in equity markets," commented New Star chairman, John Duffield, speaking at the company's annual general meeting this week.

He added that investment in property was proving particularly popular, with New Star's UK property fund the company's best selling retail product, with assets now in excess of £1 billion.

However, the promises of future profit increases did not appear to help New Star's stock market performance, as shares fell by as much as 14 pence in early trading, but have since recovered.