The shareholders rely on growth in assets, and growth in assets relies on performance. This may well end up being an example of where the imperative of the shareholder (near-term profits) pulls against the interests of investment teams and clients, possibly making changes at the wrong time. Time will tell.
Second is that clients have lost patience for similar reasons – many hung in during the depths of underperformance, but waiting 11 years was just too much for them. In all instances, the fund sizes have dramatically fallen over the years, suggesting clients have voted with their feet.
But, finally, it may hint at something positive. If we go back to the late 1990s, we saw a similar trend with value managers struggling with performance and outflows. Eventually some experienced managers left, too. A good example is the late and very gifted Jim Cox, from Schroders, who left in 1999-2000. And as he stepped back, performance started turning.
Could we be witnessing such a moment, where history finds that the final sacrifice of a number of long-standing careers may be a signal that this was a great buying opportunity?
Rory Maguire is managing director of Fundhouse
