Summary of The Aftermath of Fund Management Change

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

The Aftermath of Fund Management Change summary
Start getting smarter:
or see our plans


9 Overall

9 Importance

9 Innovation

9 Style


The highly publicized departures of well-known mutual fund managers like Bill Gross at PIMCO highlight the fixation the media and investors have on the importance of the leader at the helm of a fund. But in this succinct, accessible study, Morningstar researchers Madison Sargis and Kai Chang find that the success of a fund does not depend on a single individual but rather on the team-driven approach that now dominates the industry. getAbstract recommends this eye-opening, useful report to investors and financial professionals.

In this summary, you will learn

  • How investors react to news of a high-profile management change in a fund,
  • Why a leader’s departure has no effect on a fund’s returns and
  • How the team approach to investing influences fund performance.

About the Authors

Kai Chang is the director of quantitative research at Morningstar, where Madison Sargis is a quantitative analyst.



Now and then, a high-profile fund manager’s departure receives media attention, and huge cash outflows from that fund often ensue, the result of investor worries about future performance following a star manager’s leave-taking. But are those concerns warranted? Researchers interested in understanding investor behavior examined the returns of “US actively managed equity and fixed-income funds” that had experienced some shift in personnel between January 2003 and December 2016. The data show no relationship between a manager’s leaving and a fund’s future returns. The findings apply across the spectrum, regardless of a fund’s size, risk and return, or managerial tenure.

Get the key points from this report in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

Customers who read this summary also read

More by category