Rather than simply generate reports for portfolio managers to use, fund analysts at leading companies including Fidelity, Putnam and MFS are getting more say in which stocks a fund selects in funds they are labeling “sector” or “research” funds, The Wall Street Journal reports.

Mutual fund analysts at Lipper say given the volatility of the market, which has become one of stock pickers, the hands-on approach makes sense and creates another layer of risk management and accountability.

“The old standard was that you had a couple of star portfolio mangers running everything, but now we are seeing a shift, and I think it’s working out better for investors,” commented Tom Roseen, senior fund analyst with Lipper.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.