A problem presented to mutual fund firms is how to prevent investors from redeeming shares when a star manager leaves a fund, Reuters reports. This has happened on more than a few occasions lately, with large companies like Janus and Liberty Wanger Asset Management losing some of their highest-rated stockpickers.

For example, Helen Young Hayes recently announced her retirement from Janus at age 40. This presents a significant problem on many levels, including how to replace her knowledge and expertise, but also how to retain the investors that signed up for the fund because of her fame.

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.