A Survey of Institutional Investors’ Investment and Management Decisions on Illiquid Assets

Jansen, Kristy A.E.; Tuijp, Patrick

doi:10.3905/jpm.2020.1.202

Cited by 10 publications

(8 citation statements)

References 29 publications

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“…They found that the Dutch pension funds invested 15% of their portfolio in such instruments, whereas the Canadian pension funds invested a relatively higher proportion equal to 34%. In the survey conducted in this paper, the Polish fund managers invested 12% of their portfolio in illiquid assets, which is a similar level as the one reported by Jansen and Tuijp (2021) for the Dutch funds sector.…”

Section: Discussionsupporting

confidence: 71%

“…In our research the managers were characterized by higher overconfidence level and, moreover, the existence of the relationship between the overconfidence effect and the NBP announcements, representing the home market news, was not rejected. Jansen and Tuijp (2021) surveyed fund managers in the Netherlands and in Canada and focused on the investigation of their investments in illiquid assets. They found that the Dutch pension funds invested 15% of their portfolio in such instruments, whereas the Canadian pension funds invested a relatively higher proportion equal to 34%.…”

Section: Discussionmentioning

confidence: 99%

“…Our study provides addition to the scarce international literature on the fund managers’ behaviour and their decision-making processes by focusing on the extensive analysis of their behavioural biases. Previous papers for other markets, based on questionnaire surveys or interviews, include Cheung and Chinn (1999), Freeman and Bartels (2000), Arnswald (2001), Drachter et al (2007) and Foster and Warren (2016), Przychodzen et al (2016), Ahmad et al (2017a, 2017b), Hartwig et al (2017), Gómez-Bezares and Przychodzen (2018), Jansen and Tuijp (2021) and they are typically subject to certain limitations, such as relatively small samples or low response rates. As argued by Azimi (2019), large scale surveys of professional investors simply do not exist due to high costs of conducting such research projects.…”

Section: Literature Reviewmentioning

confidence: 99%

“…,Przychodzen et al (2016),Ahmad et al (2017a,b),Hartwig et al (2017),Gomez-Bezarez and Przychodzen (2018),Jansen and Tuijp (2021) and they are typically subject to certain limitations, such as reatively small samples or low response rates. As argued by Azim (2019), large scale surveys of professional investors simply do not exist due to high costs of conducting such research projects.…”

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confidence: 99%

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Do investment fund managers behave rationally in the light of central bank communication? Survey evidence from Poland

Wolski

Bolek²,

Gajdka³

et al. 2023

QRFM

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Purpose This study aims to answer the question whether investment funds managers exhibit behavioural biases in their investment decisions. Furthermore, it investigates if fund managers, as a group of institutional investors, make decisions in response to central bank’s communication as well as other information in relation to various behavioural inclinations. Design/methodology/approach A comprehensive study was conducted based on a questionnaire, which is composed of three main parts exploring: (1) general information about the funds under the management of the surveyed group of fund managers, (2) factors that influence the investment process with an emphasis on the National Bank of Poland communication and (3) behavioural inclinations of the surveyed group. Cronbach’s alpha statistic was applied for measuring the reliability of the survey questionnaire and then chi-squared test was used to investigate the relationships between the answers provided in the survey. Findings The central bank’s communication matters for investors, but its impact on their decisions appears to be only moderate. Interest rates were found to be the most important announcements for investment fund managers. The stock market was the most popular market segment where the investments were made. The ultra-short time horizon played no, or only small, role in the surveyed fund managers’ decisions as most of them invested in a longer horizon covering 1 to 5 years. Moreover, most respondents declared that they considered in their decisions the information about market expectations published in the media. Finally, majority of the fund managers manifested limited rationality and were subject to behavioural biases, but the decisions and behavioural inclinations were independent and, in most cases, they did not influence each other. Practical implications The results reported in this study can be used in practice to better understand and to improve the fund managers’ decision-making processes. Originality/value Apart from the commonly tested behavioural biases in the group of institutional investors in the existing literature, such as loss aversion, disposition effect or overconfidence, this paper also focuses on the less intensively analysed behavioural inclinations, i.e. framing, illusion of the control, representativeness, sunk cost effect and fast thinking. The originality of this study further lies in the way the research was conducted through interviews with fund managers, who were found to be subject to behavioural biases, although those behavioural inclinations did not influence their investment decisions. This finding indicates that professionalism and collectivism in the group of institutional investors protect them from irrationality.

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Section: Discussionsupporting

confidence: 71%

Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 99%

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Do investment fund managers behave rationally in the light of central bank communication? Survey evidence from Poland

Wolski

Bolek²,

Gajdka³

et al. 2023

QRFM

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“…The results of a study of some Dutch and Canadian pension funds regarding illiquid assets are shown in the work Jansen and Tuijp (2021). Dutch pension funds in the sample invest 15% of their portfolio in illiquid assets, while Canadian pension funds invest 34%.…”

Section: Introductionmentioning

confidence: 99%

Investment potential of non-state pension funds in Ukraine

Tropina

Melnyk²,

Rippa

et al. 2021

Investment Management and Financial Innovations

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World practice shows that non-state pension funds (NPFs) are not only a tool for supplementary pensions, but also a source of significant investment in the economy. This study aims at determining the investment potential of 65 Ukrainian NPFs currently functioning in the country. The analysis of Ukrainian NPFs has shown their insignificant role as an investment resource (the volume of their assets is 0.09% of GDP). At the same time, NPFs operate with significant funds (UAH 3.1 billion in 2019), but the lack of a developed stock market and effective financial instruments in the country narrows the opportunities for their investment activities. A study of the structure of NPF assets allocation showed that it is far from optimal in terms of investment portfolio diversification and is very conservative – almost 85% of invested NPF assets are government guaranteed securities and funds in bank deposit accounts. But in the context of tightening the requirements for disclosure of information on the activities of NPFs, promoting the stock market development, formation of reliable mechanisms to protect depositors’ pension savings,and formation of an effective investment portfolio, NPFs in Ukraine

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Institutional Investor Size and Private Equity

Khan,

Khan

2024

The Palgrave Encyclopedia of Private Equity

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A Survey of Institutional Investors’ Investment and Management Decisions on Illiquid Assets

Cited by 10 publications

References 29 publications

Do investment fund managers behave rationally in the light of central bank communication? Survey evidence from Poland

Do investment fund managers behave rationally in the light of central bank communication? Survey evidence from Poland

Investment potential of non-state pension funds in Ukraine

Institutional Investor Size and Private Equity

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