NSAM New Star

    26th November 2008

                      New Star Asset Management Group PLC                      

New Star Asset Management Group PLC ("New Star") gives notice of the temporary
suspension of dealings in the New Star International Property Fund.

As market conditions and investor sentiment continue to deteriorate, there has
been an increase in the level of redemptions from the New Star International
Property Fund, mainly from a few institutional clients. This has had an impact
on the fund's liquidity. New Star, with the agreement of the fund's depositary,
Royal Bank of Scotland, have, therefore, reluctantly decided to suspend dealing
in the fund until further notice.

This suspension of dealing is designed to restore sufficient liquidity to the
fund for it to meet redemptions once it re-opens for dealing. New Star intends
to minimise the period of suspension. We are, however, mindful that fair value
for all investors needs to be achieved when disposing of assets given the weak
market environment. We cannot, therefore, estimate how long the suspension may
last at this stage but we will continue to communicate with our investors and
their advisers throughout the process.

The New Star International Property Fund has performed relatively well amidst
the turmoil of the past year. Through its diversified real estate portfolio,
the fund has to a significant degree protected investor value. Since launch on
4 June 2007, the fund has fallen 9.2%1 compared to a 39.9% 2 decline for the
FTSE All-Share Total Return Index and a 34.4% 2 decline for the MSCI World
Total Return Index in sterling terms. At yesterday's valuation point, the
fund's gross income yield is 4.2%3. The fund's net income will continue to be
paid during the suspension period.

Stuart Webster, New Star's head of global property, 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."

1Source: Lipper, bid to bid, net income reinvested 04/06/07 - 21/11/08.

2Source: Datastream.

3Source: New Star.

                                    -ends-                                     

For further information please contact:

Jamie Legg                 UK public relations manager                  020 7225 9567

Richard Wilson             Marketing director                           020 7225 9575

Polhill Communications                                                  020 7655 0540

New Star Investment Fund's website is www.newstaram.com.

Important information

 

  * New Star was founded in June 2000 by John Duffield, previously the founder
    of Jupiter Asset Management.
   
 

  * New Star currently has a range of UK retail funds. These include funds
    covering UK and international equity growth, UK equity income, bonds, UK
    and international property and specialist areas such as global financials,
    investment trusts and technology as well as global and regional funds of
    funds.
   
 

  * New Star won the Citywire Team All Stars Award in 2004, 2005 and 2006. The
    award recognises consistent performance on a risk-adjusted basis across 15
    key IMA sectors.
   
 

  * New Star employs approximately 38 0 people and has offices in London,
    Dublin, Madrid, Milan, Zurich, Bermuda and Hong Kong.
   
 

  * At 30 September 2008, the group's total funds under management stood at
    approximately �16.7 billion.
   
 

Past performance is not necessarily a guide to future performanceand yields are
not guaranteed.

 



END

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