The group has made the decision to allow the fund to restore sufficient liquidity in order to meet redemptions once it re-opens – with the group not setting any potential date.
Since launch in June 2007, the New Star international property fund has fallen by 9.2 per cent, according to figures from Lipper. New Star says the majority of redemptions has come from its institutional clients.
New Star head of global property Stuart Webster says: “It is with great reluctance that New Star has temporarily suspended dealing in the New Star international property fund. The fund has demonstrated that a portfolio such as this has valuable diversification benefits in difficult times. The fund’s focus on diverse asset quality has the potential to deliver strong long-term returns to investors.”