RT Journal Article
SR Electronic
T1 Mutual Fund Portfolio Manager Structures: <em>Attributes, Implications, and Performance</em>
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 115
OP 127
DO 10.3905/jwm.2017.19.4.115
VO 19
IS 4
A1 John A. Haslem
YR 2017
UL https://pm-research.com/content/19/4/115.abstract
AB The purposes of this study are to review how mutual fund portfolio manager structures—and their attributes and implications—impact fund risk and return performance. For example, retail investors in actively managed mutual funds are often characterized as “dumb investors chasing past performance,” but evidence finds the opposite is true. Investors are able to identify skilled portfolio managers, but the average investor’s net alpha is significantly negative. There is thus no evidence that investors share in returns provided by manager skill. Again, why do investors who can identify skilled managers in actively managed funds continue to be satisfied with below-market returns?TOPICS: Mutual funds/passive investing/indexing, manager selection, performance measurement