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Management Tenure

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


Overinvestment, subsequent earnings management, and CEO tenure
www.tandfonline.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

External auditors, audit committees and earnings management in FranceExternal auditors, audit committees and earnings management in France
www.tandfonline.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

Audit committees and quarterly earnings managementAudit committees and quarterly earnings management
onlinelibrary.wiley.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

Earnings management and nonroutine executive changesEarnings management and nonroutine executive changes
www.sciencedirect.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

CEO tenure and earnings managementCEO tenure and earnings management
www.sciencedirect.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

Auditor tenure and Audit Quality: Empirical Evidence from the Chinese Securities Market <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-KJYJ200601008.htm' />Auditor tenure and Audit Quality: Empirical Evidence from the Chinese Securities Market [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-KJYJ200601008.htm'>PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

Managerial tenure and earnings managementManagerial tenure and earnings management
www.emerald.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

The association between audit committee multiple-directorships, tenure, and financial misstatementsThe association between audit committee multiple-directorships, tenure, and financial misstatements
meridian.allenpress.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …

The impact of entrepreneurial orientation on firm performance: the role of CEO position tenure and industry tenureThe impact of entrepreneurial orientation on firm performance: the role of CEO position tenure and industry tenure
www.tandfonline.com [PDF]
… Wu, 1997) and takeovers (Easterwood, 1997), in which managers have incentives to … Through earnings management, CEOs opportunistically mislead investors, regulators, customers and other … that after engaging in overinvestment CEOs are likely to manage firms' subsequent …



Q&A About Management Tenure


Which type of mutual funds are not subject to questions concerning managerial tenure?

Mutual funds under team management or index funds are not subject to questions concerning managerial tenure.

Why are investors best served by investment managers who have proved themselves over an extended period of time?

Investors are best served by investment managers who have proved themselves over an extended period of time because they will be able to perform better and provide more accurate information about their performance.

Which type has limits on how long someone can stay employed ?

The limited

Who can be tenured?

Some faculty positions have tenure and some do not. Typical systems (such as the widely adopted "194 Statement of Principles on Academic Freedom and Tenure" allow only a limited period to establish a record of published research, ability to attract grant funding, academic visibility, teaching excellence, and administrative or community service. They limit the number of years that any employee can remain employed as an non-tenured instructor or professor compelling the institution to grant tenure or terminate an individual with significant advance notice at the end of a specified time period. Some institutions require promotion to Associate Professor as a condition for granting tenure. A few institutions offer "terminable" term appointments which are similar in nature but not identical in practice; these are often used when there is no expectation that sufficient funds will be available for regular appointment renewals within an appropriate time frame (e.g., one year). Under such terminable terms, if sufficient funds become available during this initial period then the appointment may be renewed without requiring review by other faculty members; otherwise it ends automatically after its original term expires without further action required by either party involved in making or receiving such an appointment..

How does long-term fund performance record indicate a fund manager's investing abilities?

Long term fund performance record indicates a managers investing abilities because it shows how well they have performed over an extended period of time.

What does tenure do?

Tenure allows scholars to hold and examine a variety of views.

Are there different types of tenures ?

Yes , there are different types .

How does tenure protect academic freedom?

It protects scholars from being fired for their beliefs.

What is tenure?

Tenure is a means of defending the principle of academic freedom.

What are they ?

There are three main types .

Which type has no limit on how long someone can stay employed ?

The unlimited type .

What do you compare two different funds against each other for in order to determine which one is better?

You compare two different funds against each other for management tenure in order to determine which one is better.

What is management tenure?

Management tenure is the length of time that a manager has been at the helm of a mutual fund.

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