We’ve written about fund manager changes a couple of times this year (When a Manager Moves, Be Prepared and Knowing When to Sell is Key to Smart Investing). Needless to say, we think that the person pulling the trigger on the investment decisions is very important.

For the most part, however, manager changes on mutual funds don’t cause much of a stir. The exceptions are when the fund is closely associated with a star manager. I first wrote about this in January after Kim Shannon moved from CI Funds to Brandes and Alan Radlo left Fidelity (whereabouts unknown at this point).

This week a couple of manager changes came across my screen – the AGF Dividend Income Fund is changing the trigger puller again and Allan Jacobs is leaving Sceptre Investment Counsel and will no longer be managing the highly acclaimed Sceptre Equity Growth Fund.

The Jacobs situation is by far the more interesting for two reasons. First, the Growth Fund has been Jacobs’ baby from the start. He is the Growth Fund and his reputation and record are built on it. Second, this isn’t a mainstream ‘large-cap Canadian equity’ mandate like the ones being managed by Shannon and Radlo. The Growth Fund is a unique small/mid-cap fund. Sceptre has rebuilt its equity team in recent years and their track record is excellent. But despite that, when they take over, the nature of this $850 million fund will change profoundly.

Should investors wait around to see what Sceptre is going to do with the Growth Fund? No.

Will the assets of the fund take a hit with this news? It will be a race for the door.