young business woman
Finance
Research insight
May 13, 2021

Competition and cooperation in mutual fund families

Abstract:

Using manager compensation disclosure and intra-family manager cooperation measures, we create indices of family-level competitive/cooperative incentives. Families that encourage cooperation among their managers are more likely to engage in coordinated behavior (e.g., cross-trading and cross-holding) and have less volatile cash flows. Families with competitive incentives generate higher performing funds, a higher fraction of “star” funds, but greater performance dispersion across funds. In examining the determinants of incentive schemes, competitive families are more likely to manage institutional money, and cooperative families are more likely to distribute through brokers, consistent with retail demand for nonperformance characteristics.

Authors: Richard Burtis Evans, Melissa Porras Prado, Rafael Zambrana


You can find the research article here.

Nova SBE Finance Knowledge Center

Nova SBE Finance Knowledge Center

Website
16. Peace, justice and strong institutions
Finance
Opinion Article
SDG
8

What internal shifts need to occur for a family office to embrace sustainable investing?

Family offices can offer a much higher level of customization and a greater alignment of interest than private banks or wealth management firms. They are also showing a growing appetite for the myriad of investment approaches under the “sustainable finance” umbrella. In this context, the following questions often surface:

Learn more
Finance
Project
SDG
8
16
17

How will FinTech impact financial services and society?

FinTech in Iberia and sub-Saharan Africa Report. This is the first output of the FinTech Initiative, a joint partnership between Nova SBE Finance Knowledge Center and Nova SBE NOVAFRICA Knowledge Center, under the Social Equity Initiative, promoted by BPI | Foundation "la Caixa".

Learn more
Finance
Project
SDG
8
17

The Rise of Crowd Funding to Small Business: Dynamic Impacts on Local Credit, Labor Markets, and Investments

Emanuele Rizzo, from the Nova SBE Finance Knowledge Center, was granted the Lamfalussy Research Fellowship from the European Central Bank with a research project aiming to assess the impacts of crowdfunding to small businesses on local credit, labor markets and investments.

Learn more