This comes after a sustained period of underperformance by the fund manager.
Trevor Green, who already manages the equity portion of the managed distribution fund and the select opportunities fund, will assume the mandate and New Star’s UK equity team members will retain their individual responsibilities.
New Star has also announced a number of fund mergers as part of the cost cutting measures announced earlier this month and is in talks to hire a new chief investment officer charged with improving the risk-adjusted returns across the entire fund range.
The New Star hidden value fund is to be merged with the UK alpha fund under Tim Steer’s management, as tipped by Money Marketing last week.
The New Star monthly income unit trust is to be merged with the managed distribution fund led by Green and will have the option of monthly income preserved.
The New Star European leaders fund will also be merged with the New Star European value fund under the management of Nick Sheridan.
New Star chairman John Duffield says:“Our overwhelming priority in making these changes is to improve investment performance. I recognise that we have been too slow in some of our funds in adjusting to the sustained falls in securities markets.
“I am also acutely aware that we have, thanks in part to the professionalism of our service team, retained the goodwill of the vast majority of our customers in these exceptionally difficult times. We really do appreciate their loyalty and my loyalty is to them. That is why I am determined to restore New Star’s reputation for delivering first class returns for our investors.”