The Impact Of Manager Changes On Fund Performance

Using the unique database of UK fund manager changes and event study methodology, the authors examine the impact of such changes to establish whether this impact varies depending upon whether the fund manager is male or female; whether the fund is a developed or emerging market; and depending upon the fund's style, that is, growth, value or small cap. The results show clearly across different categories of funds that a change in fund manager can have a significant impact on fund performance. They document that funds improve their performance after a female fund manager has been replaced. Finally, Authors find persistence in performance of the bottom performing funds compared with the top performing funds pre and post management change.