New Star Asset Management, has lost Theodora “Theo” Zemek, manager of two of New Star’s bond funds and head of fixed income, to Axa Investment Managers as global head of fixed income as the company has been hit by declines in investment performance and outflows from its flagship property and European equity funds. Financial Times

This month, the group revealed that the value of its best-selling property fund, which reached a peak of £2.1bn this year, had fallen 18% since the end of July and withdrawals had reached between 5-10% of assets. Mr Duffield himself warned in September that the environment for asset management was becoming 'somewhat more challenging'.