Department of Economics and Business Economics

Decentralized Investment Management: Evidence from the Pension Fund Industry

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Standard

Decentralized Investment Management : Evidence from the Pension Fund Industry. / Blake, D.; Rossi, A.G.; Timmermannn, Allan; Tonks, I.; Wermers, R.

In: Journal of Finance, Vol. 68, No. 3, 01.06.2013, p. 1133-1178.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

Blake, D, Rossi, AG, Timmermannn, A, Tonks, I & Wermers, R 2013, 'Decentralized Investment Management: Evidence from the Pension Fund Industry', Journal of Finance, vol. 68, no. 3, pp. 1133-1178. https://doi.org/10.1111/jofi.12024

APA

Blake, D., Rossi, A. G., Timmermannn, A., Tonks, I., & Wermers, R. (2013). Decentralized Investment Management: Evidence from the Pension Fund Industry. Journal of Finance, 68(3), 1133-1178. https://doi.org/10.1111/jofi.12024

CBE

Blake D, Rossi AG, Timmermannn A, Tonks I, Wermers R. 2013. Decentralized Investment Management: Evidence from the Pension Fund Industry. Journal of Finance. 68(3):1133-1178. https://doi.org/10.1111/jofi.12024

MLA

Vancouver

Blake D, Rossi AG, Timmermannn A, Tonks I, Wermers R. Decentralized Investment Management: Evidence from the Pension Fund Industry. Journal of Finance. 2013 Jun 1;68(3):1133-1178. https://doi.org/10.1111/jofi.12024

Author

Blake, D. ; Rossi, A.G. ; Timmermannn, Allan ; Tonks, I. ; Wermers, R. / Decentralized Investment Management : Evidence from the Pension Fund Industry. In: Journal of Finance. 2013 ; Vol. 68, No. 3. pp. 1133-1178.

Bibtex

@article{541a73f400c0403fa5102ee36dce3406,
title = "Decentralized Investment Management: Evidence from the Pension Fund Industry",
abstract = "Using a unique data set, we document two secular trends in the shift from centralized to decentralized pension fund management over the past few decades. First, across asset classes, sponsors replace generalist balanced managers with better-performing specialists. Second, within asset classes, funds replace single managers with multiple competing managers following diverse strategies to reduce scale diseconomies as funds grow larger relative to capital markets. Consistent with a model of decentralized management, sponsors implement risk controls that trade off higher anticipated alphas of multiple specialists against the increased difficulty in coordinating their risk-taking and the greater uncertainty concerning their true skills.",
author = "D. Blake and A.G. Rossi and Allan Timmermannn and I. Tonks and R. Wermers",
year = "2013",
month = jun,
day = "1",
doi = "10.1111/jofi.12024",
language = "English",
volume = "68",
pages = "1133--1178",
journal = "Journal of Finance",
issn = "0022-1082",
publisher = "Wiley",
number = "3",

}

RIS

TY - JOUR

T1 - Decentralized Investment Management

T2 - Evidence from the Pension Fund Industry

AU - Blake, D.

AU - Rossi, A.G.

AU - Timmermannn, Allan

AU - Tonks, I.

AU - Wermers, R.

PY - 2013/6/1

Y1 - 2013/6/1

N2 - Using a unique data set, we document two secular trends in the shift from centralized to decentralized pension fund management over the past few decades. First, across asset classes, sponsors replace generalist balanced managers with better-performing specialists. Second, within asset classes, funds replace single managers with multiple competing managers following diverse strategies to reduce scale diseconomies as funds grow larger relative to capital markets. Consistent with a model of decentralized management, sponsors implement risk controls that trade off higher anticipated alphas of multiple specialists against the increased difficulty in coordinating their risk-taking and the greater uncertainty concerning their true skills.

AB - Using a unique data set, we document two secular trends in the shift from centralized to decentralized pension fund management over the past few decades. First, across asset classes, sponsors replace generalist balanced managers with better-performing specialists. Second, within asset classes, funds replace single managers with multiple competing managers following diverse strategies to reduce scale diseconomies as funds grow larger relative to capital markets. Consistent with a model of decentralized management, sponsors implement risk controls that trade off higher anticipated alphas of multiple specialists against the increased difficulty in coordinating their risk-taking and the greater uncertainty concerning their true skills.

UR - http://www.scopus.com/inward/record.url?scp=84878117365&partnerID=8YFLogxK

U2 - 10.1111/jofi.12024

DO - 10.1111/jofi.12024

M3 - Journal article

AN - SCOPUS:84878117365

VL - 68

SP - 1133

EP - 1178

JO - Journal of Finance

JF - Journal of Finance

SN - 0022-1082

IS - 3

ER -