When should you look at taking clients' money away from an underperforming manager? Research and ratings firm Fund Calibre said it follows the rule of four...
Funds can underperform for a number of reasons. According to Fund Calibre the main ones are if the manager style is out of favour (for example if they are value investors and growth investing is working better), if they have made some bad stock picks, or they have miss-timed or simply got their asset allocation wrong in a more diversified fund. There are also occasions when currencies can play a negative role in the performance of a non-UK fund. The important thing to remember is that all managers, no matter how good, can have periods of underperformance. Fund Calibre said it wo...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
