New Star Asset Management, the London-based funds house run by John Duffield, this morning hired John Tiner, former chief executive of the UK's top financial regulator, as it revealed it had suffered the most difficult period since opening its doors in 2001 and was preparing for "a year of consolidation" in its industry.

Duffield, co-founder and chairman of the business, said in the asset manager's annual results published today that "the second half of 2007 and the start of 2008 have been the most difficult period for New Star since we began trading in 2001 and we expect 2008 as a whole to be a year of consolidation for our business."