'Irritation' for investors as prominent fund managers take longer gardening leaves

Managers face personal accountability

Fund managers are being forced to take longer gardening leaves than ever before when they depart their existing firms, and could even face personal accountability over any breach of contract.

Buyers have said managers' gardening leaves have been extended from a typical three-month period five years ago, to six months or even longer on non-compete clauses. Peter Toogood, investment director at City Financial, said: "As outlays have increased, fund management groups have been more vociferous in defending their assets on manager exits, hence the extension to gardening leaves. This is an irritation for investors, but I do not see the trend changing." City Financial's Toogood: Why the time has come for value investing This development has created headaches for many fund buyer...