New Star Asset Management, the listed UK fund management group, said it maintained a good retail sales momentum throughout the recent market downturn but warned it now faces a "more challenging environment". Profits for the first half were up 58% to £48m (€71m).

The business, with £24.7bn under management, is primarily a retail fund manager. During the first half of the year it pulled in a net £2.3bn of new assets, £2.1bn of which was in its retail funds. The company said it won a further £226m between July 1 and September 26.