Why funds drift 'out of shape' (and what to do about it)

The glamorous part of being an asset manager is the ability to form and talk about views on investment markets, and how to balance those views against inherent investment risks. However, there is a significant part of the job which is less glamorous: on a day-to-day basis there is the need to ensure that funds continue to do what we told investors they would. Whenever we change our views, we naturally undertake switches to reflect those views and, following the switches, our funds are where we want them to be: in shape. Many may think this is a simple job and that no further work i...