MGIM CEO: Fund buyers must hold star managers to account post Woodford

Higher levels of 'maturity and understanding' required

Fund selectors must do more to "hold to account" fund managers who drift from their investment style or expose investors to inappropriate risks, according to the CEO of Momentum Global Investment Management (MGIM) Ferdinand Van Heerden, who said the implosion of Woodford Investment Management in October has "tainted" the asset and wealth management sector.

Van Heerden, whose firm sold Woodford IM funds having obtained them as part of an acquisition of multi-asset portfolios, told Investment Week that further cultural change needs to take place in the industry to avert similar crises, with engagement and transparency top priorities. He said: "As multi-asset investors, we need to hold these managers to account when they deviate from their philosophy. "Star managers in particular sometimes deviate from that because they want to deliver the best outcome at all costs." 2019: An appalling year for Woodford Underlying liquidity was a key...