Managers with long tenure were associated with stronger and more persistent excess returns compared to short-tenured peers, S&P fund analyst Justine Gorman said.
"In today's competitive funds management marketplace, employee retention is a critical factor in the performance of the business, with the loss of a key employee potentially having a dramatic effect on a fund manager's success," Gorman said.
"Businesses lose intellectual capacity and corporate knowledge when a portfolio manager leaves. If not managed carefully, the repercussions of manager turnover can adversely affect morale, investor relationships and the fund manager's corporate brand." «
