More than £20m was wiped off the value of New Star International Property, one of the most popular unit trusts launched last year, when it switched to a 'bid basis' as the fund manager disclosed 'one or two exceptional redemptions' yesterday.

Jamie Legg of New Star said the £678m fund had achieved net inflows of £130m during 2008 and delivered a total return of 3.3% for 'tens of thousands of investors' since its launch last June, compared with a loss of 15% in the All Companies sector.

He added that the fund manager would reconsider the pricing basis of units at noon today.

Daily Telegraph