IDEAS home Printed from https://ideas.repec.org/p/dsr/wpaper/1.html
   My bibliography  Save this paper

How Do Fund Managers Invest: Self Strategy of Herding in Private Pension Funds?

Author

Listed:
  • Jose Olivares
  • Jean Sepulveda

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

We use Sias (2014) approach to decompose the correlation among investment strategies followed by pension funds administrators in the Chilean private pension fund system during the periods 1997-2001 and 2002-2005, and find that most of this correlation is explained by herding behavior. That is, fund managers mimicking the investment strategy of other funds. We argue that the obligated minimum guaranteed return that pension funds institutions must fulfill, created the incentive for fund managers to herd.

Suggested Citation

  • Jose Olivares & Jean Sepulveda, 2007. "How Do Fund Managers Invest: Self Strategy of Herding in Private Pension Funds?," Serie Working Papers 01, Universidad del Desarrollo, School of Business and Economics, revised Sep 2007.
    • Handle: RePEc:dsr:wpaper:1
    as

    Download full text from publisher

    File URL: http://repositorio.udd.cl/bitstream/handle/11447/15/wp01.pdf
    File Function: First version, 2007
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Pension funds; herding; performance; innovation;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dsr:wpaper:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean Sepulveda (email available below). General contact details of provider: https://edirc.repec.org/data/feuddcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.