Early Report Cards on Three International-Stock Managers
The skippers at these prominent foreign funds get mixed grades so far.
It's challenging to predict ahead of time whether a fund will be able to deliver the goods after it changes managers. In certain situations, there are ample grounds for optimism. For example, high-quality funds taken over by a seasoned and skilled colleague of the departing manager generally fare pretty well, particularly when the new skipper sticks with the existing strategy. By contrast, it would be hard to have a positive outlook for another manager change at a mediocre fund with a history of manager and strategy turnover, especially if the new skipper has an uninspiring resume.
But the scenarios for most manager changes fall between these two extremes. What's more, sometimes reality confounds expectations. Even the most promising manager changes can fail to pan out, such as when a new skipper gets off to a very slow start or when a previously successful manager loses his or her touch. And on occasion suspect manager changes turn out much better than anticipated.
Thus, it makes sense to keep an especially close eye on all funds that have changed managers. With that in mind, we're going to scrutinize three notable international-stock funds that have changed managers in recent years--namely, BlackRock Global Growth (MDGGX), Nuveen Tradewinds International Value (NAIGX), and T. Rowe Price International Stock (PRITX)
William Samuel Rocco does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.