Is the age of the star fund manager coming to a close? Morningstar's Karen Dolan reports for Morningstar
that recent moves by Janus, Fidelity and Vanguard have signaled a move toward team management of funds. Dolan goes on to explain that some institutions, consultants, and financial advisors may not want to put client assets in a fund in which the manager is not backed up by a very deep bench. Also, a star fund manager may have the ability to attract investors while he/she is around, but upon their departure, investors often pull out all at once. On the other hand, having a team-managed fund can help regulate outflows. Finally, Dolan believes the most compelling reason for a team managed fund lie in the success of others. American Funds, Dodge & Cox, and Primecap have delivered performance and been able to gather assets using the team-managed approach, while legendary managers such as Bill Miller have faltered.
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