Are N+1 heads better than one? The timing and selectivity of Australian-managed investment funds

Prather, Larry J.; Middleton, Karen; Cusack, Antony J

doi:10.1016/s0927-538x(01)00021-x

Cited by 12 publications

(11 citation statements)

References 47 publications

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“…There is a significant body of literature which investigates different aspects of superannuation such as taxation (Bateman et al, 1993;Knox, 1993), annuities (Piggot et al, 2005), retirement timing (Kingston, 2000), disclosure (Gallery and Gallery, 2003), safety (Valentine, 2003), diversification (Diggle et al, 1999), performance (Bird et al, 1983;Robson, 1986;Sinclair, 1990;Hallahan, 1999;Sawicki and Ong, 2000;Gallagher, 2001;Prather et al, 2001;Drew and Stanford, 2003;Hallahan and Faff, 2004), returns, volatility and expenses (Coleman et al, 2004). However, none of these studies explored the sensitivity of superannuation funds to market movements.…”

Section: Introductionmentioning

confidence: 99%

An analysis of the sensitivity of Australian superannuation funds to market movements: a Markov regime switching approach

Roca

Wong

2008

Applied Financial Economics

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This article investigates the sensitivity of Australian superannuation funds in relation to equity and bond markets. In particular, it examines the extent, speed and duration of response of the Australian superannuation funds's returns to movements in the US and Australian equity and bond markets when fund returns are in the up, normal and down regimes, through the application of Markov regime switching analysis. The results reveal that Australian superannuation funds's returns are most affected by movements in the US equity market, followed by the Australian equity market then by the US bond market. Funds's returns are not influenced at all by movements in the Australian bond market. They respond quickly and briefly to market movements irrespective of whether funds returns are in a down, normal or up state. Funds's returns move positively with the US equity market under all states or regimes of funds returns but most especially during the down regime. They are influenced by the Australian equity market only during the normal regime and by the US bond market only during the up regime. In line with those of previous studies, these results imply that Australian superannuation funds are not able to time their exposure to markets and that their performance is indicative of an efficient market.

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Section: Introductionmentioning

confidence: 99%

An analysis of the sensitivity of Australian superannuation funds to market movements: a Markov regime switching approach

Roca

Wong

2008

Applied Financial Economics

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“…This study provides specific attention to one of the most important investment management characteristics -an investment institution's management of human capital. The paper further extends the work of Prather, Middleton and Cusack (2001) who consider performance differences (stock selection and market timing) between team-oriented and individual manager-specific portfolios. Our study examines the performance impact surrounding top management turnover and is a direct examination of team-oriented investment management.…”

Section: Introductionmentioning

confidence: 59%

Top Management Turnover: An Analysis of Active Australian Investment Managers

Gallagher

Nadarajah

2004

Australian Journal of Management

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Abstract:This study examines the relationship between top management turnover (i.e. investment directors) and investment performance for actively managed Australian funds. This issue is significant given the importance of executive management in the implementation of the institution's investment strategy, the sizeable assets under their control, as well as the overall success and profitability of the funds management operation. In addition, investors, asset consultants, managed fund ratings agencies and the financial media devote significant resources to the scrutiny of performance, the organizational activities, leadership and human capital of investment management firms. Accordingly, this study examines the impact of performance and fund flow activity on top management turnover in both the pre-and-post replacement period. The research documents that turnover of underperforming investment managers results in significantly higher performance in the post-replacement period, while turnover coinciding with outperforming managers delivers investors significantly lower returns. The evidence also identifies significant changes in portfolio risk associated with managerial turnover. Finally, this research documents that underperforming investment managers exhibit significantly lower fund flows prior to replacement.

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“…As individual managers are not subject to group polarization that limits than to restrict their own thinking and decision. Conversely, panel of decision-makers have adequate access to higher number of alternatives for making a particular decisions that can help to reduce uncertainty in fund performance (Prather, Middelton, & Cusack, 2001). Moreover, individual fund managers typically manage young and small mutual funds due to simplification of the funds.…”

Section: Management Expertise and Fund Performancementioning

confidence: 99%

“…Managerial expertise plays a vital role for PMFs performance. Likewise, panel of fund managers are better performer than individual managers (Prather, Middelton, & Cusack, 2001). Similarly, fund size also has greater impact on fund performance because large funds have greater capability to hold large market share and higher trading volume that leads to lesser spreads on transaction (Glosten & Harris, 1988).…”

Section: Introductionmentioning

confidence: 99%

Performance of Public Mutual Funds (PMFs) in Emerging Economies: A Case of Bangladesh

Islam¹,

Dewri²

2016

IJBM

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Public Mutual fund (PMF) is an instrument for pooling the funds by issuing units to the investors and investing funds in the capital market to achieve their objectives. To invest in mutual funds is a complicated trade for investors as individual assets are belongs to verity of risks and they are dubious on return on investment. There are only 43 Mutual Funds are available to choose from where the investors can invest. To take the investment decision, the investors need to know which funds are performing better than others, gives more return, which fund is more risky etc. In this study the performance evaluation of public mutual funds carried out by considering fund age, fund size, fund return, fund dividend payout, fund price earnings ratio and fund net asset value (NAV). There are only eight PMFs are available in Bangladesh. For analysis purposes the study investigates 1999 to 2015 operations of PMF. Therefore, this study analyzes 128 a firm years, for measuring PMFs performance. The study reveals that fund size, fund return, fund dividend payout and P/E ratio has significant relation on fund performance. Whereas, fund age and fund NAV has insignificant relation on fund performance.

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Are N+1 heads better than one? The timing and selectivity of Australian-managed investment funds

Cited by 12 publications

References 47 publications

An analysis of the sensitivity of Australian superannuation funds to market movements: a Markov regime switching approach

An analysis of the sensitivity of Australian superannuation funds to market movements: a Markov regime switching approach

Top Management Turnover: An Analysis of Active Australian Investment Managers

Performance of Public Mutual Funds (PMFs) in Emerging Economies: A Case of Bangladesh

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