Should you jump ship when a star manager departs?

Investors should not be so quick to jump ship when a star manager leaves a fund, according to new research from Aegon UK which suggests mosts funds continue to outperform after a departure.

A raft of high profile fund manager departures has shaken up the UK fund management industry over the past year, most notably when Neil Woodford left Invesco Perpetual after more than 25 years at the business to set up his own company. His flagship Income and High Income funds, which have been passed on to successor Mark Barnett, have subsequently seen 30% outflows since October 2013. However, research conducted by Aegon UK on 11 funds that have seen high profile departures in recent years shows investors may be too quick to rush for the exit, as most funds left behind by star manager...