Stephen Whittaker, chief investment officer at New Star Asset Management, has handed over his £253m (€321m) equity income fund after significant underperformance, marking the latest change in senior management at the beleaguered funds house.

Whittaker joined New Star in 2002 after building a formidable reputation at UK asset manager Invesco Perpetual, home of the UK's most widely respected income fund manager Neil Woodford. However, Whittaker's UK Equity income fund lost 26% in value over the 12 months to the end of June, according to New Star.