WHETHER TO FOLLOW A MANAGER OR STAY WITH A FUND? 12.03.14

Moving managers immediately brings to mind Neil Woodford of Invesco Perpetual High Income etc. and Anthony Bolton formerly of Fidelity Special Situations. Both of whom have had an excellent track record. So should you move with them? Should you stay? Maybe this is better put by should you move or should you stay?

This depends on who is taking over and their track record and their track record with the same company. When changing Management Company the new culture may not suit the moving star manager. Or as in the case of Anthony Bolton they just over reach themselves. Anthony’s time in China was, compared to his time managing Fidelity Special Situations, a bit of a disappointment for him and his investors. Should you follow Neil Woodford to his new home? Possibly yes as he will probably have a great influence on the culture as he is going to be a big fish in a smaller pond.

I think the bottom line is in most cases you should move. What to is another matter? In the case of IP High Income the replacement manager also has a good track record. So then I would see it as moving to him as a new manager even though with the same fund. In short it is the manager and not the fund that matters.