Management sub-advising in the mutual fund industry

Moreno, Jesús David; Rodríguez, Rosa; Zambrana Galacho, Rafael

Management sub-advising in the mutual fund industry

Author(s): Moreno, Jesús David; Rodríguez, Rosa; Zambrana Galacho, Rafael

Publisher: Elsevier

Issued date: 2018-03-01

Citation: Moreno, D., Rodríguez, R., & Zambrana, R. (2018). Management sub-advising in the mutual fund industry. Journal of Financial Economics , 127 (3), pp. 567-587

ISSN: 0304-405X

DOI: https://doi.org/10.1016/j.jfineco.2018.01.004

xmlui.dri2xhtml.METS-1.0.item-contributor-funder: Ministerio de Economía, Industria y Competitividad (España)
Comunidad de Madrid

Sponsor: Rafael Zambrana acknowledges financial support from the FCT Fundação para a Ciência e a Tecnologia under the project UID/ECO/00124/2013 and POR Lisboa (LISBOA-01-0145-FEDER-007722). David Moreno and Rosa Rodríguez thank financial support from Ministerio de Economía, Industria y Competitividad (through projects ECO2016- 77807-P and ECO2015-67035-P), WRDS-UC3M (FEDER UNCC315-EE-3636), CAM grant S2015/HUM-3353 (EARLYFIN-CM) and Bank of Spain (grant PR71/15-20229).

Project: Comunidad de Madrid. S2015/HUM-3353
Gobierno de España. ECO2016-77807-P

Keywords: Outsourcing , Sub-Advisor , Mutual funds , Management company , Incentive contracts , Fund performance , Market share , Agency issue

JEL Classification: G11 , G20 , L24 , M55

URI: http://hdl.handle.net/10016/33632

Rights: © Elsevier
Atribución-NoComercial-SinDerivadas 3.0 España

Abstract:

This is a study of how contractual mechanisms can mitigate agency conflicts in sub-advised mutual funds. Sub-advising contracts allow fund families to expand their product offerings to include new investment styles and thereby gain market share. We show tha [+]

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