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Mutual fund industry management structure, risk and the impacts to shareholders

  • Bryant, Lonnie L.
  • Liu, Hao-Chen
Registered author(s):

    This article investigates the effects of a multiple fund management structure on the risk volatility of the funds simultaneously managed. Using a sample of 1480 mutual funds managed by 407 fund managers over a 3-year period, we find that the risk volatility of at least one fund managed by a multiple fund manager is significantly higher than its objective and risk-adjusted peers. At the same time, the other funds concurrently managed display significantly less difference in risk volatility. Similarly, the return-to-risk ratio of multiple fund managers is not consistently greater than the unitary managed funds.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1044028311000202
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    Article provided by Elsevier in its journal Global Finance Journal.

    Volume (Year): 22 (2011)
    Issue (Month): 2 ()
    Pages: 101-115

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    Handle: RePEc:eee:glofin:v:22:y:2011:i:2:p:101-115
    DOI: 10.1016/j.gfj.2011.10.002
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620162

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