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Combining investment advice and asset management

Author

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  • Hlobil, T.M.
  • van Leuvensteijn, M.

Abstract

Dutch pension funds often hire investment consultants to give advice on how to invest the retirement contributions of their participants and to manage these investments. Combining investment advice with asset management has potential benefits for pension funds: lower prices for asset management that is tailored to investment advice. But there are also agency costs to consider. Investment consultants know more than investors do. Will investment consultants not tailor their advice to sell their asset management services? This article uses a regulatory dataset on Dutch pension funds to explore this question.

Suggested Citation

  • Hlobil, T.M. & van Leuvensteijn, M., 2020. "Combining investment advice and asset management," Economics Letters, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:ecolet:v:197:y:2020:i:c:s0165176520303876
    DOI: 10.1016/j.econlet.2020.109627
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    References listed on IDEAS

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    1. Chalmers, John & Reuter, Jonathan, 2020. "Is conflicted investment advice better than no advice?," Journal of Financial Economics, Elsevier, vol. 138(2), pages 366-387.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Pension funds; Investment advice; Asset management; Agency costs;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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