Managers are crucially important to actively run funds, so whenever there is a change to a management team we take a close look to see what the impact will be. We evaluate the new manager’s resume and track record; we assess how important any remaining managers and analysts were to the fund’s past performance; and we determine whether there will be any modifications to the fund’s investment strategy.
Every manager change is different, though, so we don’t have any set rules for how we interpret them. While they often lead us to lower our Morningstar Analyst Rating, that’s not always the case. Sometimes we keep the fund at its current rating, and once every blue moon we even raise the rating.
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Russel Kinnel has a position in the following securities mentioned above: VASVX, WAAEX, JMCVX. Find out about Morningstar’s editorial policies.