Share these talks and lectures with your colleaguesInvite colleagues
Risk management and team-managed mutual funds
This paper relies on mutual fund industry data to examine the consequences of a specific risk-management policy. The focus is on the decision by a mutual fund sponsor to employ a fund management team instead of a solo manager. The analysis shows that team-managed funds tend to have (1) more reliable investment styles; (2) less tournament behaviour; and (3) more stable performance over time than solo-managed funds. While risk-adjusted net returns of team-managed funds are slightly lower than those of their solo-managed counterparts, team-managed funds attract significantly more new cash flows from investors. Thus, the paper provides empirical evidence that there is not necessarily a conflict between the objectives of risk management and value maximisation in financial institutions.
The full article is available to institutions that have subscribed to the journal
CitationBär, Michaela, Ciccotello, Conrad S. and Ruenzi, Stefan (2010, December 1). Risk management and team-managed mutual funds. In the Journal of Risk Management in Financial Institutions, Volume 4, Issue 1.