By Richard Loth (Contact | Biography)

This is the entry we need to complete in the Fund Investment-Quality Scorecard for an analysis of a fund's management tenure and structure:




For those funds with a solo manager, a "very positive" rating would go to a tenure-performance match of six to 10 years. A "positive" rating would apply to a three to five year match, and anything less than three years would be "sub-standard." For co-managed funds, at least one of the co-managers would have to qualify accordingly.

If a manager or managers have an investment position in the fund they are running, that's a definite plus. But, because there are circumstances that make the application of this qualifier problematic, it should not unduly influence the managerial analysis.

Value Line and Morningstar do give the name(s) and starting date(s) of a fund's manager(s). Value Line's fund report also provides a very useful numerical (1 highest to 5 lowest) "Manager Rating," measuring the manager's risk-adjusted performance relative to that of the fund's peer group. Morningstar will usually make some evaluative comment on managerial performance in the "Morningstar's Take" section of its report.

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Table of Contents
  1. Passive Vs. Active Management
  2. Fund I-Q No.4: Manager Tenure and Structure
  3. Scoring Fund Management Data


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