Fund Times: Openings, Closings, & Manager Changes
News on Janus, Berger, Strategic Partners, Principal funds, and more.
Experience Pays in Bear Market
Experience appears to have counted for something during the bear market. A spot check of Morningstar data shows domestic-stock funds run by managers or management teams who have been at the helm for 20 or more years have lost less than the typical U.S. equity fund. Meanwhile domestic-stock offerings run by stock-pickers with less tenure than the typical fund manager have lost more on average than other domestic-stock funds.
Funds managed by people with more than 20 years of tenure lost 9.8% on an annualized basis between the peak of the broad stock market (as measured by the Wilshire 5000) on March 24, 2000 and Oct. 16, 2002. Over the same period, the average domestic-stock fund lost an annualized 16% and offerings guided by managers with less than the nearly four years of tenure that is common for U.S. equity funds shed an annualized 17.5%.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.