Profits stood at £19.1m for the first half of the year down from £34m for the same period in 2007.
Operating earnings also fell 37 per cent to £30.3m before tax, while assets under management dropped 14 per cent in the first six months of the year to £19.8bn.
Net revenue fell 16 per cent to £72.8m with the firm offering an interim dividend of 1p per share.
Chairman John Duffield says: “As expected, the first half of 2008 was a difficult period for New Star. The trading environment remains difficult and we do not expect conditions to improve in the immediate future.
“We remain confident that through a combination of investment performance, marketing and service we can return over the medium term to generating significant value for our shareholders.We believe the long-term outlook for our company is good.”