“These funds also have strong trading processes,” said Madison Sargis, a quantative analyst with Morningstar and one of the authors of the study. “So, it doesn’t really matter who the name at the top is if they are grooming these people throughout the organization to behave similarly,”
A fund’s investors should be patient, Sargis added. “This is really an education moment for advisors. They should say to clients that there is not going to be a change in performance.”
That said, Sargis noted, investors might want to think about taking their money elsewhere if a fund's costs rise under new management.
“If a fund’s expenses go up, then moving to a cheaper option, net the incoming tax bill, may be justified,” Sargis said. “If the expenses do not change, then investors should think long and hard about selling out of the fund. As we all know, the only certainties of investing are costs.”