Fund Managers' Institutional Background and the Birth of Investment Management Companies

2006 ◽  
Author(s):  
Robert W. Faff ◽  
Jerry T. Parwada ◽  
Joey Wenling Yang
Keyword(s):  
Investment Management ◽  
Fund Managers ◽  
Investment Management Companies

scholarly journals A Fund-Based Timberland Investment Performance Measure and Implications for Asset Allocation

1998 ◽  
Vol 22 (3) ◽  
pp. 143-147 ◽  
Author(s):  
Jon P. Caulfield
Keyword(s):  
Asset Allocation ◽  
Institutional Investors ◽  
Performance Index ◽  
Historical Record ◽  
Performance Measure ◽  
Investment Management ◽  
Investment Performance ◽  
Risk Return ◽  
Asset Value ◽  
Investment Management Companies

Abstract Timberland investment management companies and institutional investors use indexes to calculate the performance of timberland investments. Most indexes are based on hypothetical timberland properties. The Timberland Performance Index (TPI), a fund-based performance measure, provides composite returns for actual, institutionally owned timberlands. The TPI has several desirable attributes: it uses publicly available data from real properties, is weighted by asset value, has a sufficiently long historical record that meaningful comparisons can be made with other assets, and can be updated quarterly. The TPI is employed to demonstrate how adding timberland to a portfolio influences risk-return relationships for institutional portfolios. For the 1981-1996 period it is found that adding timberland tends to enhance returns for given levels of risk. This is consistent with previous research, which employed hypothetical timberland indexes for this purpose. South. J. Appl. For. 22(3):143-147.

Behavior of fund managers in Malaysian investment management industry

2017 ◽  
Vol 9 (3) ◽  
pp. 205-239 ◽  
Author(s):  
Zamri Ahmad ◽  
Haslindar Ibrahim ◽  
Jasman Tuyon
Keyword(s):  
Bounded Rationality ◽  
Behavioral Finance ◽  
Asset Management ◽  
Institutional Investors ◽  
Institutional Investor ◽  
Current Paper ◽  
Investor Behavior ◽  
Investment Management ◽  
Content Type ◽  
Fund Managers

PurposeThis paper aims to explore the relevance of bounded rationality to the practice of institutional investors in Malaysia. Understanding institutional investor behavior is important, as it can determine the asset prices and consequently the market behavior. Design/methodology/approachA set of questionnaires is used to solicit information regarding the understanding and practical application of behavioral finance theories and strategies among fund managers in the Malaysian investment management practice. In the process, bounded rational theory is aimed to be validated. Fund managers’ possible bounded rational behavior is assessed with reference to their investment management approaches and strategies right from individual beliefs and acquisition of information, as well as investment management and strategies used. FindingsThe findings lend support to the notion that institutional investors too, being normal human beings, are expected to think and behave in a boundedly rational manner as postulated in bounded rational theory. The sources of bounded rationality are individual, institutional and social forces. Thus, portfolio trading and investment management strategies are exposed to wide varieties of behavioral risks. Despite the notions that behavioral risks are real and the impact on fund performance could be pervasive, fund managers’ self-awareness regarding control and institutional readiness to govern behavioral risks in investment practices is still low. Research limitations/implicationsEmpirical evidence drawn in the current paper is subjected to small sample size and specific focus on Malaysian context. Despite this limitation, the sample is statistically sufficient and provides a fair representation, as well as quality opinions, of fund manager’s investment management behavior in Malaysia. This research provides valuable implications to practitioners (fund managers) and regulators (investment management and capital market policymakers). In practice, the current study draws some practical ideas, especially for buy-side institutional investors, on the source and impact of behavioral biases on fund management practices and performance. For regulators, this research highlighted the needs and possible ways to regulate these behavioral risks. Originality/valueThe current paper provides new insights on the theory and practice of the institutional investor. In theory, this research provides evidence of bounded rationality of institutional investor behavior, practicing in the asset management industry in the emerging markets of Malaysia. This evidence lends support to the validity of the bounded rationality theory in explaining institutional investor behavior. In practice, thisresearch provides new insights on the relevance of behavioral finance perspectives and strategies in the asset management industry practice and policy.

The Genesis of Home Bias? The Location and Portfolio Choices of Investment Company Start-Ups

2008 ◽  
Vol 43 (1) ◽  
pp. 245-266 ◽  
Author(s):  
Jerry T. Parwada
Keyword(s):  
Mutual Funds ◽  
Institutional Investors ◽  
Home Bias ◽  
Investment Management ◽  
Investment Company ◽  
Local Bias ◽  
Fund Managers ◽  
Portfolio Choices ◽  
Money Managers ◽  
Start Ups

AbstractFund managers' bias toward geographically proximate securities is a well-researched phenomenon, yet the origins of managers' location choices have received little empirical scrutiny. This paper traces the employment and geographic heritage of 358 entrepreneurial fund managers and analyzes the determinants of where they locate their firms and stock selections. The evidence suggests that start-ups tend to be based close to the origins of their founders and in regions with more investment management firms, banking establishments, and large institutional money managers. New money managers show a strong local bias in their equity holdings, three times the levels previously documented for mutual funds. The propensity to invest closer to home correlates strongly with the presence of sub-advisory opportunities from institutional investors in the vicinity. While home bias levels between managers who relocate with their start-ups and the rest of the entrepreneurs are similar, preferences for stocks that were formally local persist.

Robust Investment Management with Uncertainty in Fund Managers’ Asset Allocation

2015 ◽  
Vol 49 (4) ◽  
pp. 821-844 ◽  
Author(s):  
Yang Dong ◽  
Aurélie Thiele
Keyword(s):  
Asset Allocation ◽  
Investment Management ◽  
Fund Managers

Does Size Matter? Scale and Scope Economies of German Investment Management Companies

2013 ◽  
Vol 65 (2) ◽  
pp. 137-172
Author(s):  
Alexander Schaefer ◽  
Raimond Maurer
Keyword(s):  
Investment Management ◽  
Scope Economies ◽  
German Investment ◽  
Size Matter ◽  
Investment Management Companies

Practical Quantitative Investment Management with Derivatives

2002 ◽  
Author(s):  
Frances Cowell
Keyword(s):  
Investment Management
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