Institutional Investor Expectations, Manager Performance, and Fund Flows

Jones, Howard and Martinez, Jose Vicente (2015) Institutional Investor Expectations, Manager Performance, and Fund Flows. Said Business School Working Paper 2015-6.

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Abstract

Using survey data we analyze institutional investors’ expectations about the future performance of fund managers and the impact of these expectations on asset allocation decisions. Past performance is a driver of both plan sponsors’ expectations of fund managers’ future performance and of the flows into (and out of) those fund managers, although it is not informative about their future performance. The non-performance attributes of funds drive expectations but do not drive flows, while investment consultants’ recommendations are critical to flows but have only a minor impact on expectations. Our findings suggest that, when plan sponsors allocate assets, they do not act fully on their expectations, but prefer to base their decisions on more defensible variables at their disposal.

Item Type: Oxford Saïd Research Paper
Keywords: Institutional asset management, asset flows, fund performance, service quality, investment consultants, finance
Subject(s): Finance
Centre: Faculty of Finance
Date Deposited: 10 Oct 2013 15:19
Last Modified: 23 Oct 2015 14:08
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4817

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