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Four Big Manager Changes

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  • Three current / impending changes:

    Bill Frels at Mairs & Power Growth (oddly, no word about Balanced)
    Preston Athey at T. Rowe Price Small Cap Value
    Jesper Madsen at Matthews Asia Dividend

    Morningstar is reasonably sanguine about each. They maintained the rating on Growth, seem to be maintaining the rating at Balanced, and ding Price and Matthews by one notch.

    For no apparent reason, Kinnel dredges up the rocky manager change 16 months ago at Columbia Value and Restructuring (UMBIX) where long-time manager David Williams announced his retirement for the end of 2012, they moved it up to April 2012 and the new management team completely restructured the fund into a clone of another they run.

    For what it's worth,

    David
  • Why is M* lowering rating on the fund BEFORE manager retires? Sure they don't know how good the replacement manager will be. However, rating should change AFTER manager actually stops managing the fund.
  • edited August 2013
    Reply to @VintageFreak: In the case of Matthews, they brought into question the experience of Zhang with only one year as co-manager before this all happened. I think for some of us who own Matthews there are no worries. It has been reported that Mr. Horrocks will be overseeing things for a period of time.
  • Reply to @VintageFreak: Perhaps because the folks who buy it today will be holding it, mostly, under the new leadership? As a result, Morningstar might want to be signaling "don't move in so quickly"?

    Just a guess.

    David
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