New Star Asset Management suffered a further blow yesterday when its flagship international property fund was forced to suspend trading after redemptions by institutional investors left it dangerously low on cash.

Shares in the company tumbled a further 33% at 16p on news of suspension of the £470m fund, which has seen about £75m pulled by institutions looking to cover their own losses in the past few weeks.

The closure of the fund, the only UK-domiciled international property vehicle of its kind open to UK retail investors when it launched last summer, marks another setback for New Star.

Financial Times, The Times, Daily Telegraph