A Manager-Change Checklist

Manager hit the road? Answering these seven questions can help you determine next steps

Christine Benz 3 October, 2014 | 12:45PM
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Buxton leaving Schroders, Woodford leaving Invesco, Gross leaving PIMCO. Such high-profile manager departures—and lower profile moves—can consume newspaper inches and unnerve fund investors.

For the many investors who own a fund that is set to be orphaned, the decision is a personal one: What should I do? Some investors appear to not spend much time deliberating: The Wall Street Journal reported that investors withdrew $10 billion from PIMCO Total Return on the day Bill Gross’ exit was announced, and additional redemptions have likely followed this week.

While fleeing investors may be trying to avoid any blowback from further redemptions, it's usually wise to step back and be deliberate when your fund undergoes a management shift. You'll want to take stock of your own personal situation, as well as size up the particulars of the fund at hand. Gross' fund was idiosyncratic and personality-driven, but other funds are much more tightly constrained, meaning that the departure of any one individual will tend to be less important.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Invesco UK Eq High Inc UK Inc323.57 GBP0.09Rating
Invesco UK Equity Inc UK Inc1,304.63 GBP0.17Rating
LF Equity Income A Sterling Acc3.40 GBP0.00
PIMCO GIS Ttl Ret Bd E USD Acc29.96 USD0.03Rating

About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.

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