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Star managers not essential says poll | Trustnet Skip to the content

Star managers not essential says poll

24 November 2010

Over 50 per cent of investors polled by Trustnet believe asset management groups can survive without their star managers.

By Joshua Ausden,

Analyst, Financial Express

The majority of investors believe that asset management groups can survive without their star managers, according to the latest Trustnet reader poll.

The results are contrary to evidence from Gartmore which has seen substantial outflows and significant bad press since the departure of star fund manager Roger Guy.

Guy's departure is one of a number of high profile exits in recent months, with Graham Birch's exit from BlackRock, and Guy de Blonay's switch from Henderson to Jupiter.

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Poll conducted 22-24 November, 208 respondents


A spokesman from Killik said that he was surprised by the results of the poll, and had witnessed first hand the negative impact of Guy's departure.

He said investors had been rushing to bail out of Gartmore European Absolute Return fund on the back of Guy's departure, adding: "We have seen significant outflows since the announcement was made. A major reason people invested in the fund was Guy's excellent track record in terms of his long/short strategy. Our view is that the main reason to invest is now gone."

Financial Express data shows that since Guy's announcement on 8 November, the fund's performance has deteriorated slightly.

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Source: Financial Express Analytics

Killik's spokesman said the fund still had the capacity to perform well: "In the short term the fund has certainly become less attractive, but the strategy that the manager has implemented still stands. Gartmore still have a very good team and excellent fundamentals, so I wouldn’t discount them yet."

In the past, the departure of a leading fund manager has not necessarily resulted in lower returns. Since Graham Birch's departure, the Blackrock World Gold fund has performed very well for example, with returns exceeding 93 per cent since March 2009.

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Source: Financial Express Analytics

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Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.