Blog: The axe is falling too fast on underperforming funds

New research has revealed DFM's are giving fund managers less than a year to perform before ditching them, but is this far too short a time period?

One of the biggest concerns for fund managers in recent times has been the increasing short-termism creeping into the industry when assessing their performance. Their fears were realised by new research this week focusing on the actions of discretionary fund managers (DFMs), who you would perhaps expect to have a longer term and more considered approach to analysing returns. However, the study from CoreData found fund managers can expect the axe from a DFM if they fail to perform within the first 12 months of being granted a mandate. The average firm (from a survey of 100 DFMs) wou...