Decentralized investment management: An analysis of non-profit pension funds

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Show simple item record Bateman, H Thorp, SJ 2009-12-21T03:54:29Z 2007-01
dc.identifier.citation Journal of Pension Economics and Finance, 2007, 6 (1), pp. 21 - 44
dc.identifier.issn 1474-7472
dc.identifier.other C1 en_US
dc.description.abstract We investigate delegated investment management in private pension accounts using data from Australian accumulation (superannuation) funds. In Australian non-profit pension funds, trustees choose investment managers on behalf of members. We find that funds with many delegated managers have higher risk-adjusted returns than those with few. However funds with 13 or less specialized managers show no improvement over funds with a single diversified manager. All do worse than a benchmark portfolio of asset-class indices. Further, by using random selection to mimic the choices of an uninformed individual choosing from the same menu of delegate managers as used by trustees, we show that returns from pension funds with large numbers of trustee-selected managers compare favorably with returns from randomly selected, equally weighted portfolios. However this improvement falls off quickly for funds with fewer trustee-selected managers, or when randomly selected portfolios are also diversified across asset classes. Results indicate that an uninformed individual following a naive diversification strategy would have done as well as most trustee boards in this sample.
dc.publisher Cambridge University Press
dc.title Decentralized investment management: An analysis of non-profit pension funds
dc.type Journal Article
dc.parent Journal of Pension Economics and Finance
dc.journal.volume 1
dc.journal.volume 6
dc.journal.number 1 en_US
dc.publocation Cambridge, UK en_US
dc.publocation Birmingham, UK
dc.identifier.startpage 21 en_US
dc.identifier.endpage 44 en_US BUS.Centre for the Study of Choice en_US
dc.conference Verified OK en_US
dc.for 140207 Financial Economics
dc.personcode 995378
dc.personcode 100768
dc.percentage 100 en_US Financial Economics en_US
dc.classification.type FOR-08 en_US
dc.edition 1
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/Finance
pubs.organisational-group /University of Technology Sydney/Strength - Quantitative Finance
pubs.organisational-group /University of Technology Sydney/Strength - Study of Choice
utslib.copyright.status Open Access 2015-04-15 12:23:47.074767+10
utslib.collection.history Finance (ID: 371)
utslib.collection.history General (ID: 2)

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