Four times to ditch an underperforming fund manager

Funds can underperform for a number of reasons. According to Fund Calibre the main ones are if the manager style is out of favour (for example if they are value investors and growth investing is working better), if they have made some bad stock picks, or they have miss-timed or simply got their asset allocation wrong in a more diversified fund. There are also occasions when currencies can play a negative role in the performance of a non-UK fund. The important thing to remember is that all managers, no matter how good, can have periods of underperformance. Fund Calibre said it wo...