Early 40s peak time for fund manager performance

clock

A fund manager's age does have an effect on whether they are likely to outperform, with those in their early 40s most likely to beat their peers, according to research from Scottish Widows Investment Partners'(SWIP) multi-manager team.

Head of multi-manager Mark Harries said the team evaluated the five most popular sectors and identified that within the equity space, managers in their early 40s tended to outperform. However, in the bond sector outperformance was linked to a slightly younger average age of 38. "Fund manager experience really does count. I am not saying you should never buy a younger manager, but it does seem that a manager in their early 40s with 19 to 20 years of investment experience tends to be a good profile," said Harries. The SWIP multi-manager team assessed UK Equity Income, Global Equities...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Content: Is the interest rate descent the time to harvest bonds?

Partner Content: Is the interest rate descent the time to harvest bonds?

Markets expect interest rates to fall this year, offering investors the strongest opportunity for fixed income seen for a long time. Watch this video podcast to learn how best to harvest this exciting opportunity.

Sarka Halas
clock 28 March 2024 • 1 min read
Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Trustpilot