Funds: Staff churn dents brand
For the sake of their investors at least, fund managers who are thinking of moving jobs may be better off staying put.
Institutional Investor quotes Morningstar analyst Gregg Wolper sounding off about the negative impact of job changes at Fidelity International. Wolper apparently says Fidelity has lost some of its appeal following a 'shocking number' of changes at the top of most of its funds.
Three quarters of retail international funds at Fidelity are said to be run by people who have been with the firm less than a year.
Wolper's outburst follows the publication of a report last week by Watson Wyatt suggesting that institutional investors who fire investment managers over poor performance may go on to suffer even worse performance under someone new.
The magazine reports Watson Wyatt as advising funds to resist hiring and firing on short-term measures.
The message is clear: stay where you are, particularly if you've been underperforming.
