The talent war for fund managers has resulted in boutiques fighting large institutions for the best staff and has shortened overall tenures.
Staff turnover had been a constant in the funds management industry in recent years, presenting a real issue for those trying to build a long-term fund holding, Morningstar head of research Anthony Serhan said.
Length of tenure was one of the more important attributes Morningstar considered when undertaking an assessment of fund manager capabilities, Serhan said.
"While there are a lot of experienced managers who have seen a range of market cycles, we give more credit to the results achieved by those who have done it in the same working environment with a similar approach throughout," he said.
"Tenure can also be a reasonable indicator of how happy people are with the working environment, but not always."
A recent Morningstar report found the longest-serving Australian equity fund managers were Maple-Brown Abbott's John Kightley (14 years), Colonial First State's Martin Littler (12 years), Ausbil Dexia's Paul Xiradis (11 years), Constellation's Doug Little, Lazard's Rob Osborn and Tyndall's Bob van Munster (each 9 years).
The characteristics being built into firms to keep people would provide some valuable pointers on what to look for when selecting a fund manager, he said.
