Fund manager moves: Has industry turnover become excessive?

Research by Investment Week has revealed only half of managers in the major IMA sectors have run their funds for five years or more.

The figures, compiled using FE data, show the extent to which manager turnover affects the industry, and raises questions over how portfolios would react in the event of market stress. Across the six sectors analysed as a whole, just 50% of the 853 funds (as of 31 May) have been run by the same manager for more than five years. The worst offender was the Global sector, in which just 42% of managers have remained in place for that period, according to FE. The data does not include funds launched over the past five years, but there is one crucial caveat to the numbers: managers’ old por...