Updated 03 September 2020
Just as when a star football boss move on, when your fund manager leaves for pastures new should you stick with the club or move with the manager? Scott Gallacher explains the reasons to stay or stalk.
Has Alex Ferguson done a Richard Buxton?
Well, not quite.
As you will probably know, Alex Ferguson is one of the most successful football managers of all time and after 27 years with Manchester United he has just announced that he is retiring at the end of the season. Whereas star fund manager Richard Buxton is moving to Old Mutual after almost 11 years managing the Schroder UK Alpha Plus fund.
Obviously with football the fans have little choice but to stick with their chosen team and hope they bring in a good replacement (Jose Mourinho or David Moyes anyone?). But with investments it is clearly different and when a star manager leaves, investors face a quandary of whether to stick with that fund, or to follow the manager…
Sticking with a fund can make sense for three key reasons: –
Obviously with investments, like football, the future is unknown and successful managers with one team can fail with another. Anthony Bolton, for example, who was once highly regarded as one of the best fund managers in the country during his time with the Fidelity Special Situations fund has struggled with his Chinese fund.
When fund managers do move on it is important to take time to review your investments to check whether they are still appropriate and consider if you should you stick with the fund or move with the manager.