Institutional Investor Expectations, Manager Performance, and Fund Flows

Download or read book Institutional Investor Expectations, Manager Performance, and Fund Flows written by Howard Jones and published by . This book was released on 2017 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.