Implications of "Best Interest" Rule for Annuities
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
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The authors’ study covered the performance of global funds during the period from 2001 to 2008. The following is a summary of their findings:
The bottom line is that management companies treat their own funds more favorably than those they manage on behalf of other fund families. In-house funds outperform outsourced funds on both a raw and risk-adjusted basis.
Prior research has documented that investors tend to pick a fund family first. Only then do they choose the funds (from among that family’s menu) in which they will invest. Given that behavior, mutual fund families often offer more product differentiation, despite the negative outcomes for investors.
In addition, they indirectly provide further evidence that active management is a loser’s game (outsourcing only makes it more so). One would think that if anyone had the skills and resources to identify the few future active managers that will beat their benchmarks, it would be other active managers. The evidence from this research shows how poorly they do at that task.
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Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
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Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
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Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
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Justin Kuepper
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Daniel Cross
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Sam Bourgi
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The authors’ study covered the performance of global funds during the period from 2001 to 2008. The following is a summary of their findings:
The bottom line is that management companies treat their own funds more favorably than those they manage on behalf of other fund families. In-house funds outperform outsourced funds on both a raw and risk-adjusted basis.
Prior research has documented that investors tend to pick a fund family first. Only then do they choose the funds (from among that family’s menu) in which they will invest. Given that behavior, mutual fund families often offer more product differentiation, despite the negative outcomes for investors.
In addition, they indirectly provide further evidence that active management is a loser’s game (outsourcing only makes it more so). One would think that if anyone had the skills and resources to identify the few future active managers that will beat their benchmarks, it would be other active managers. The evidence from this research shows how poorly they do at that task.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
|
Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
|
Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...