Today’s results from Old Mutual Global Investors (OMGI) has once again proved that many investors follow their preferred fund managers.
OMGI posted net inflows of £300m in the third quarter of this year, partly owing to strong inflows into Richard Buxton’s UK Equity Alpha fund. The former Schroders manager moved to OMGI in June this year, but it is too soon to tell what effect has been made on Mr Buxton’s former fund, the Schroders UK Alpha Plus.
This month, Money Management looked at the effect of the cult of the fund manager and what happens when a star fund manager leaves their company.
This Chart, for example, shows performance data for the £234m Liontrust UK Growth fund over the past 10 years, after Jeremy Lang and William Pattisson announced their departure in January 2009. The duo were subsequently replaced by Anthony Cross and Julian Fosh. The Chart shows that in fact, despite widespread panic after the announcement, the fund has gone from strength to strength, particularly after chief executive John Ions took up the reins at the firm in early 2010.
Advisers are in agreement that the job of an adviser is to weigh up the factors of a fund, such as strategies and charges. However, while for some advisers the fund manager themselves may be almost irrelevant, today’s OMGI results prove the fund manager remains one of a number of considerations when picking funds for clients.