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

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Show simple item record Bateman, Hazel en_US Thorp, Susan en_US 2009-12-21T03:54:29Z 2009-12-21T03:54:29Z 2007 en_US
dc.identifier 2006011835 en_US
dc.identifier.citation Bateman Hazel and Thorp Susan 2007, 'Decentralized investment management: An analysis of non-profit pension funds', Cambridge University Press, vol. 6, no. 1, pp. 21-44. en_US
dc.identifier.issn 1474-7472 en_US
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. en_US
dc.publisher Cambridge University Press en_US
dc.title Decentralized investment management: An analysis of non-profit pension funds en_US
dc.parent Journal of Pension Economics and Finance en_US
dc.journal.volume 6 en_US
dc.journal.number 1 en_US
dc.publocation Cambridge, UK en_US
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 en_US
dc.personcode 100768 en_US
dc.personcode 995378 en_US
dc.percentage 100 en_US Financial Economics en_US
dc.classification.type FOR-08 en_US
dc.staffid 995378 en_US

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