The importance of manager tenure

These four top-performing Canadian equity mutual funds have had the same lead managers for 15 years or more.

Jeffrey Bunce, CFA 13 April, 2017 | 5:00PM
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One of the factors we consider when assigning a qualitative analyst rating to a fund, is manager tenure. If you think about it, there’s good reason for there to be a connection between the length of a manager’s tenure on a fund and the fund’s performance. If a manager has kept his job for a long time, then it probably means he’s been doing it well. Also, if a manager has stuck with his firm over a number of years, then he’s likely happy or satisfied with where he’s at. Long tenured managers have also likely honed and refined their process and have developed strong working relationships with colleagues over the years. These are all positive indicators that can give hints at whether a fund will be successful on a go-forward basis.

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About Author

Jeffrey Bunce, CFA

Jeffrey Bunce, CFA  Jeffrey Bunce, CFA, is a senior investment analyst for Morningstar’s Investment Management group.

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