New Star's Deptford looks to shake up assets in quest for performance

Mr Deptford takes over the fund from Stephen Whittaker, who left the fund following a period of underperformance. Mr Whittaker took over the fund in November 2006 and, according to Morningstar, to 23 July the fund lost 26.34 per cent against the IMA UK Equity Income sector average loss of 14.98 per cent. Throughout that period the fund was ranked 80 out of 84 funds.

Mr Deptford said he would focus on two or three main points and put his own stamp on the vehicle. He said he would start by having a more constrained portfolio, reducing the number of holdings from more than 75 to between 50-60.

He also said he was hoping to reduce the yield, currently above the 6 per cent mark.

"The yield on the fund will be reduced from 6.2 per cent to a scale that will boost dividends going forward. We will also look to reduce the fund's tracking error from around 6.3 per cent to 4 per cent.

"I will also reduce some of the big sector bets, as in the past I have traditionally made more money selecting stocks than relying on sectors."

Mr Deptford added that the rally he expected at the moment would give him the chance to sell some cyclical stocks into rising prices.

He has already bought a number of new holdings, he said, such as Man Group and Filtrona.

Mark Skinner, managing director at New Star Investment Funds, said: "Charles has a proven and consistent track record, and I am confident his considerable expertise will benefit investors in the New Star Equity Income Unit Trust."

Mr Deptford joined New Star from Baring Asset Management, where he was head of UK equities and managed the £11.6m Equity Income and £42m UK Growth funds.