James Crux, Shares Magazine, 22 September 2022:
On 5 September, asset manager Abrdn (ABDN) announced that veteran and very successful fund manager Harry Nimmo will retire…
When a fund manager who has forged a particularly strong track record exits stage left, it is tempting to immediately sell your fund units or investment trust shares. However, it is important not to panic and to take your time and assess the situation…
CHANGE AT THE TOP
There has been a fair bit of fund manager turnover this year. For example, Sam Vecht has been appointed as lead portfolio manager of BlackRock Latin American (BRLA)…Shares in global investment trust Brunner (BUT) languish at a 14.7% discount to NAV as investors fret over the threat of a world recession as well as lead manager Matthew Tillett’s unexpected decision to step down…
WHAT SHOULD YOU DO IN THIS SITUATION?
The first thing to do when a successful manager leaves is to think carefully about how the fund was managed. Did they manage the fund on their own or was it managed via a team approach?
If the portfolio in question will continue to be managed in the same way, it may be suitable to stay with the fund…
WHAT IF I STICK WITH THE FUND?
In this situation, you’ll need to evaluate the new fund manager, be it an internal or external hire. Ask yourself, has the investment management firm drafted in a seasoned manager with a strong reputation in the industry and experience with a similar strategy, or has the firm decided to give the opportunity to a young manager themselves?..
IMPACTING THE RATING
James Carthew, head of investment companies at research group QuotedData, says there are some funds that appear to be inextricably linked with an individual manager.
‘In those circumstances, their departure will inevitably affect the rating,’ he explains. ‘A good recent example might be Independent Investment Trust (IIT), where, in the face of manager Max Ward’s intended retirement, the board opted to merge the trust into Monks (MNKS), which operates with a similarish style, rather than find a replacement manager.’
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