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

Author

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  • Bryant, Lonnie L.
  • Liu, Hao-Chen

Abstract

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.

Suggested Citation

  • Bryant, Lonnie L. & Liu, Hao-Chen, 2011. "Mutual fund industry management structure, risk and the impacts to shareholders," Global Finance Journal, Elsevier, vol. 22(2), pages 101-115.
    • Handle: RePEc:eee:glofin:v:22:y:2011:i:2:p:101-115
    DOI: 10.1016/j.gfj.2011.10.002
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    3. Suparna Biswas & Santanu Dutta, 2015. "Assessing Market Risk of Indian Index Funds," Global Business Review, International Management Institute, vol. 16(3), pages 511-523, June.

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    More about this item

    Keywords

    Mutual fund; Management structure; Risk; Unitary; Multiple fund management;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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