The New Star Equity Income Unit Trust fell 12.4%# in September, having been marginally more resilient than the FTSE All-Share Total Return Index, which shed 13.2%#. It was an exceptionally poor period for equity investors as the credit crunch continued to deepen. The bankruptcy of Lehman Brothers triggered large falls in bank shares and a significant increase in uncertainty and risk aversion in all equity markets.A sharp fall in HBOS shares led to an all-paper agreed takeover bid by Lloyds TSB and Bradford & Bingley was nationalised. The prices of oil and other commodities also fell significantly in response to data that suggested that there was going to be a steep decline in global economic growth over the next few months. HBOS was the worst performing stock in the FTSE 100 Index as investors speculated that the Lloyds takeover would not go through or that the terms would be changed. Mining stocks were also weak.The fund's best performing holding was Amlin, which gained 8.3%, while Catlin rose 5.4%. The fund also benefited from the fact that it held no mining stocks.Its worst performing stock was Man Group, which lost 40.8%. The fund sold its holdings in Centrica, and British Energy following a bid. New holdings were started in Ashmore and TUI Travel and the fund also significantly increased its holdings in general insurance stocks following AIG's crisis.