Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/114469 
Year of Publication: 
2015
Series/Report no.: 
CFR Working Paper No. 14-04 [rev.2]
Publisher: 
University of Cologne, Centre for Financial Research (CFR), Cologne
Abstract: 
Fund families strategically shape their member funds' behavior to target specific groups of investors with varying performance and service needs. In this paper I introduce a new measure to identify performance-oriented and service-oriented funds. Matching theories from the industrial organization literature, I suggest that funds whose families outsource the execution of services unrelated to portfolio management to external specialists are the same funds with an emphasis on their core business portfolio management. I find an outperformance of serviceoutsourced funds that is robust to a range of alternative explanations. Moreover, I show evidence that service-outsourced funds indeed possess superior investment skills.
Subjects: 
Mutual funds
Fund performance
Outsourcing
Shareholder services
JEL: 
G23
L22
L84
Document Type: 
Working Paper

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