According to reports in the UK media, New Star Asset Management may float on the London Stock Exchange in less than a month. City of Lond...

According to reports in the UK media, New Star Asset Management may float on the London Stock Exchange in less than a month. City of London rumours are rife, according to the Daily Telegrapgh, that the fund manager has been holding discussions with a number of investment banks over the advisory mandate. UBS is the favourite to win the business, say sources close to the company. The speculation was fuelled by New Star taking the unusual step of forecasting a "significant advance in operating profits" earlier this year. Expected valuations are likely to be at least £800 million ($1.4 billion) and this would make the company’s founder, John Duffield's stake worth £160 million. On this basis other managers would have a combined holding valued at around £320 million. At the time of the statement in May, chief executive Howard Covington indicated that a decision on flotation would be made in the third or fourth quarter. Sources close to the company have revealed that the board will meet in early September to decide whether or not to go ahead. New Star now has funds under management exceeding £13.5 billion and claims to be the largest independent retail fund manager in the UK. It is expected to make a profit of over £40 million this year. Around three quarters of its investment funds are in the top 25 per cent of performers in their sectors.