How to you respond to a change in fund manager?

jamei305

If you own an active fund that has been doing well over a period of years, and then the manager departs, how do you react?

Would you ignore it, because you don't see a change to the fund's style and you trust the firm to appoint a competent new manager? Would you perhaps try and make some assessment of the new manager's track record?

dunstonh

If you own an active fund that has been doing well over a period of years, and then the manager departs, how do you react?

Depends on who is taking over and how the fund was run before. A lot of funds run as a team of people with a lead manager. Sometimes it is the team where the quality is and the lead manager takes the plaudits. When they go elsewhere, they fall flat of their face whilst the team with its new lead manager carry on doing much the same as before.

Other times, the lead manager is such a strong power that they dominate decisions and the team lacks ability.

So, you decide on a case by case basis and how the management structure and team will change.

quirkydeptless

aroominyork

dunstonh wrote: »

Depends on who is taking over and how the fund was run before. A lot of funds run as a team of people with a lead manager. Sometimes it is the team where the quality is and the lead manager takes the plaudits. When they go elsewhere, they fall flat of their face whilst the team with its new lead manager carry on doing much the same as before.

Other times, the lead manager is such a strong power that they dominate decisions and the team lacks ability.

So, you decide on a case by case basis and how the management structure and team will change.

Could you please comment on the individual vs. team set-up of the two European funds I hold, one of whose manager recently left and the other whose manager shortly will: Threadneedle European Smaller Companies (Mark Heslop) and Jupiter European (Alexander Darwell)?