Institutional investor expectations, manager performance, and fund flows

Journal article

Abstract:: 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.

Files:: Jones and Martinez Institutional Investor Expectations Manager...

(Preview, Accepted manuscript, pdf, 947.8KB, Terms of use)

Publisher:: Cambridge University Press
Journal:: Journal of Financial and Quantitative Analysis More from this journal
Volume:: 52
Issue:: 6
Pages:: 2755-2777
Publication date:: 2017-11-02
Acceptance date:: 2016-06-09
DOI:: 10.1017/S0022109017000850
EISSN:: 1756-6916
ISSN:: 0022-1090

Keywords:: investment consultants

fund performance

asset flows

institutional asset management

service quality
Pubs id:: pubs:627218
UUID:: uuid:0e89f839-7945-4c23-b738-d357f12a1987
Local pid:: pubs:627218
Source identifiers:: 627218
Deposit date:: 2016-06-10
ARK identifier:: ark:/29072/ora_0e89f83979454c23b738d357f12a1987

Copyright holder:: Michael G Foster School of Business
Notes:: © Michael G. Foster School of Business, University of Washington 2017. This is the accepted manuscript version of the article. The final version is available online from publisher at: https://doi.org/10.1017/S0022109017000850

Licence:: Terms and Conditions of Use for Oxford University Research Archive

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