Institutional investor expectations, manager performance, and fund flows
Using survey data, we analyze institutional investors’ expectations about the future performance of fund managers and the impact of those expectations on asset allocation decisions. We find that institutional investors allocate funds mainly on the basis of fund managers’ past performance and of inve...
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| Format: | Journal article |
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Cambridge University Press
2017
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| _version_ | 1797053607508443136 |
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| author | Jones, H Martinez, J |
| author_facet | Jones, H Martinez, J |
| author_sort | Jones, H |
| collection | OXFORD |
| description | Using survey data, we analyze institutional investors’ expectations about the future performance of fund managers and the impact of those expectations on asset allocation decisions. We find that institutional investors allocate funds mainly on the basis of fund managers’ past performance and of investment consultants’ recommendations, but not because they extrapolate their expectations from these. This suggests that institutional investors base their investment decisions on the most defensible variables at their disposal and supports the existence of agency considerations in their decision making. |
| first_indexed | 2024-03-06T18:46:02Z |
| format | Journal article |
| id | oxford-uuid:0e89f839-7945-4c23-b738-d357f12a1987 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T18:46:02Z |
| publishDate | 2017 |
| publisher | Cambridge University Press |
| record_format | dspace |
| spelling | oxford-uuid:0e89f839-7945-4c23-b738-d357f12a19872022-03-26T09:46:26ZInstitutional investor expectations, manager performance, and fund flowsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:0e89f839-7945-4c23-b738-d357f12a1987Symplectic Elements at OxfordCambridge University Press2017Jones, HMartinez, JUsing survey data, we analyze institutional investors’ expectations about the future performance of fund managers and the impact of those expectations on asset allocation decisions. We find that institutional investors allocate funds mainly on the basis of fund managers’ past performance and of investment consultants’ recommendations, but not because they extrapolate their expectations from these. This suggests that institutional investors base their investment decisions on the most defensible variables at their disposal and supports the existence of agency considerations in their decision making. |
| spellingShingle | Jones, H Martinez, J Institutional investor expectations, manager performance, and fund flows |
| title | Institutional investor expectations, manager performance, and fund flows |
| title_full | Institutional investor expectations, manager performance, and fund flows |
| title_fullStr | Institutional investor expectations, manager performance, and fund flows |
| title_full_unstemmed | Institutional investor expectations, manager performance, and fund flows |
| title_short | Institutional investor expectations, manager performance, and fund flows |
| title_sort | institutional investor expectations manager performance and fund flows |
| work_keys_str_mv | AT jonesh institutionalinvestorexpectationsmanagerperformanceandfundflows AT martinezj institutionalinvestorexpectationsmanagerperformanceandfundflows |