Management Tenure

By
rjonesx
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What is ‘Management Tenure’

The length of time that a manager(s) has been at the helm of a mutual fund. A long-term fund performance record, preferably of five to 10 years, is a key indicator of a fund manager’s investing abilities.

Explaining ‘Management Tenure’

Mutual fund investors are best served by investment managers who have proved themselves over an extended period of time. The more closely matched a manager’s tenure is with a solid fund performance record, the better.

For example, let’s compare two different funds: The XYZ Fund has an annualized average 10-year total return of 11% and has been run by the same manager over that period. The ABC Fund has the same 10-year annualized average total return of 11%, but it has had two different managers. One’s tenure covered the first nine years and the second has only been on the job for one year. Will the second manager be just as good as the first? We hope so, but making a decision on current managerial quality is difficult because fund performance and managerial tenure don’t match.

For obvious reasons, mutual funds under team management or index funds are not subject to questions concerning manager tenure.

Management Tenure FAQ

Whats does tenure mean?

holding of property

What is the average tenure of employees?

In January 2020, the point at which half of all workers had more tenure and half had less tenure for men was 4.3 years, unaltered from the median in January 2018. For women, median tenure was 3.9 years in January 2020, a minimal difference from the median of 4.0 years in January 2018.

What is tenure in a job?

Tenure is the total period an employee has worked for their employer.

What is good job tenure?

The median of years that compensation and paid laborers have worked for their present business is currently 4.6 years. Nonetheless, this life span varies by age and occupation. The median time for laborers age 25 to 34 is 3.2 years while the median time for employees over the age of 65 is 10.3 years.

Further Reading

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