Institutional Investor Expectations, Manager Performance, and Fund Flows

Jones, Howard and Martinez, Jose Vicente (2017) Institutional Investor Expectations, Manager Performance, and Fund Flows. Journal of Financial and Quantitative Analysis, 52 (6). pp. 2755-2777.

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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.

Item Type: Article
Keywords: finance, institutional asset management, asset flows, fund performance, service quality, investment consultants,
Subject(s): Finance
Date Deposited: 10 Jun 2016 14:09
Last Modified: 07 Dec 2018 16:43
Funders: N/A

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