Morningstar raises fears over fund group succession plans

Morningstar has voiced concerns about the lack of succession planning in the funds industry and the reluctance of groups to hand over large pots of money to young talent.

Peter Toogood, investment services director for Morningstar OBSR, is calling for fund groups to start thinking more about succession and giving younger managers opportunities to run money and develop a track record. “We are not against the star manager culture, but we are concerned that person is in control until they leave. There is not enough chance for new talent to flourish,” he said. “Some fund groups are already thinking about this, such as BlackRock with its co-manager policy. For example, Nick Little joined BlackRock seven years ago, so now he has a long track record.” Last...