Journal article
Prudent man or agency problem? On the performance of insurance mutual funds
Journal of financial intermediation, Vol.16(2), pp.175-203
04/01/2007
DOI: 10.1016/j.jfi.2006.10.002
Abstract
Active equity mutual funds managed by insurance companies underperform peer funds by over 1% per year. There is no evidence that insurance funds make less risky investments; instead they have lower risk-adjusted returns and their fund flows are less sensitive to performance when they perform poorly. Across insurance funds, those with heavy advertising, directly established by insurers or using parent firms' brandnames, and those whose managers simultaneously manage substantial non-mutual-fund assets, are more likely to underperform. We conclude that insurers' efforts to cross-sell mutual funds aggravate agency problems that erode fund performance.
Details
- Title: Subtitle
- Prudent man or agency problem? On the performance of insurance mutual funds
- Creators
- Xuanjuan Chen - University of North Carolina WilmingtonTong Yao - University of ArizonaTong Yu - University of Rhode Island
- Resource Type
- Journal article
- Publication Details
- Journal of financial intermediation, Vol.16(2), pp.175-203
- Publisher
- Elsevier Inc
- DOI
- 10.1016/j.jfi.2006.10.002
- ISSN
- 1042-9573
- eISSN
- 1096-0473
- Language
- English
- Date published
- 04/01/2007
- Academic Unit
- Finance
- Record Identifier
- 9984380558502771
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