Fund manager moves have soared to an all-time high, with almost a quarter
of all unit and investment trusts witnessing a change in lead manager last
A total of 470 unit trust managers moved in 2000, up by 78 per cent from
the 1999 figure of 263. Of 374 investment trusts, 59 saw a change in
The figures, published in the UK Fund Industry Review 2001, mean only 6
per cent of all unit trusts now have a 10-year fund manager track record,
down from 8 per cent last year.
The number of unit trusts which have had the same manager for more than
five years stayed the same as 1999 at 20 per cent while funds with a
three-year track record fell from 40 per cent to 36 per cent.
Investment trusts were slightly more stable but still only have 12 per
cent of funds with a 10-year record, 44 per cent with a five-year record
and 50 per cent with three years.
Credit Suisse Asset Management director Rob Burdett, who runs CSAM's new
multi-manager service, says: “This helps to explain away some of the
inconsistencies in unit trusts. If you have got two-thirds of managers
changing in three years, then two-thirds of the funds are having problems.
“The message from these figures is buy and beware. If you are looking at
track records, make sure that you know whether they were created by the
current fund manager.”