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How different are minority managers from White managers in the mutual fund industry?

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  • Dewald, Frederick P.
  • Fan, Zaifeng

Abstract

This study investigates manager characteristics and performance differences between minority (Asian, Black, Hispanic Latino) and White managers in the mutual fund industry. We find that racial representation varies dramatically among different types of funds. While we demonstrate systematic differences in manager- and fund-level characteristics between minority and White managers, we find that minority managers have higher fund flows and no significant difference in fund returns. The findings suggest that diversity variation in the mutual fund industry is unlikely due to performance differences.

Suggested Citation

  • Dewald, Frederick P. & Fan, Zaifeng, 2022. "How different are minority managers from White managers in the mutual fund industry?," Economics Letters, Elsevier, vol. 221(C).
    • Handle: RePEc:eee:ecolet:v:221:y:2022:i:c:s0165176522003846
    DOI: 10.1016/j.econlet.2022.110910
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    References listed on IDEAS

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    More about this item

    Keywords

    Mutual fund manager; Race; Diversity; Fund performance;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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