Investment manager characteristics, strategy, top management changes and fund performance

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23 Citations (Scopus)

Abstract

The present study examines the performance of Australian investment management organisations with direct reference to their specific characteristics and strategies employed. Using a unique information source, performance is evaluated for actively managed institutional balanced funds, Australian share funds and Australian bond funds. For balanced mandates, performance is evaluated with respect to the investment strategy adopted, the experience and qualifications held by investment professionals, and the tenure of the key investment professionals. The present study examines the performance of top management and the impact on returns when turnover arises. The research documents that a significant number of active Australian equity managers earned superior riskadjusted returns in the period, however, active managers perform in line with market indices for balanced funds and Australian bond funds. A number of manager characteristics are also found to predict risk-adjusted returns, systematic risk and investment expenses for balanced funds.

Original languageEnglish
Pages (from-to)283-309
Number of pages27
JournalAccounting and Finance
Volume43
Issue number3
DOIs
Publication statusPublished - Nov 2003
Externally publishedYes

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