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

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.

Return to the Main Menu.
Proceed to the next chapter on Fund Transactional Activity.


Related Articles
  1. Managing Wealth

    Fund I-Q No.4: Manager Tenure and Structure

    By Richard Loth (Contact | Biography)A long-term fund performance record, preferably over a 10-year period, provides the best indicator of a manager's investing abilities. Accordingly, one of ...
  2. ETFs & Mutual Funds

    Scoring Fund Analytical Commentary

    By Richard Loth (Contact | Biography)This is the entry we need to complete in the Fund Investment-Quality Scorecard for an analysis of a mutual fund's analytical commentary: ...
  3. Managing Wealth

    Passive Vs. Active Management

    By Richard Loth (Contact | Biography)In almost all economic endeavors, the quality of management is generally a key component of a successful operation. Managing a mutual fund is no exception ...
  4. ETFs & Mutual Funds

    Scoring Risk-Return Data

    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 risk-return profile: Obviously, ...
  5. Trading

    Fund Management Issues

    The quality of management is a key component of a fund's success.
  6. ETFs & Mutual Funds

    What Fund Managers Do

    A fund manager is responsible for implementing a fund’s investing strategy and managing its trading activities.
  7. ETFs & Mutual Funds

    Choose A Fund With A Winning Manager

    We break down the key components of analyzing a fund manager's performance so you can find a winner.
  8. ETFs & Mutual Funds

    Fund I-Q No.8: Favorable Analytics

    By Richard Loth (Contact | Biography)The financial media are major purveyors of information on the mutual fund industry as a whole, as well as on individual funds. The quality of this information ...
  9. ETFs & Mutual Funds

    Morningstar's Trifecta: An Easy Way To Select Mutual Funds

    These three pieces of Morningstar's trifecta can help you understand the quality of mutual funds.
  10. Trading

    Analytical Commentary On A Fund

    Independent fund investment research is the key to finding investment quality in a mutual fund.
Trading Center