DFMs give fund managers one year to perform before swinging the axe

DFMs, an increasingly influential distribution channel, on average tolerate just ten months of underperformance before replacing a manager, while half of DFMs say they would replace a fund manager who has underperformed for only six months. This approach is likely to hit cyclical managers hard, as well as those managers who have hit a bad patch with one or two wrong calls. Despite fees and charges coming under increased scrutiny across all aspects of the industry, performance (89%) and perceived trustworthiness (92%) heavily outranked the importance of cost (64%) as a key factor in se...