As in every walk of life, sometimes fund managers change jobs. They may move to another fund company or start a new career, be given responsibility for a new fund or decide to take a break. Sometimes the choice is theirs, sometimes its not, particularly if performance has been consistently disappointing.
We like to keep our customers up-to-date with fund manager changes, so that they can decide if they want to remain invested in the fund or switch to another. There is no water-tight rule as to what is the correct action to take – each change should be looked at individually.
If the fund in question is rated by Chelsea, we usually move the rating to a hold when a manager changes. We then reassess the fund when we meet the new manager and make a more informed decision. However, if the new manager is known to us and the investment mandate is similar to their previous one, we may not change the rating.