New research from CFA Digest shows that governance and results are better in a retail fund when there is a parallel institutional class running alongside it. Investors get better risk-adjusted performance driven by stronger governance, reflecting the increased scrutiny that twin funds get. http://cfa.is/13Knpcu This averaged an annual 1.5%, well above the typical extra fees […]
Continue reading
Archive | Other Research RSS feed for this section
How big should the financial sector be?
February 27, 2013 
0 Comments
Excellent article by Arjun Jayadev at Triplecrisis.com on inefficiency in the financial sector. Thirty years of rising cost of financial intermediation as the US financial sector doubled its share of corporate profits. On Naked Capitalism… http://t.co/bzNmIgPe6O Arjun is an Assistant Professor of Economics at the University of Massachusetts, Boston.
Continue readingGood collection of links on recent Behavioural Finance articles
February 24, 2013 0 Comments
Good collection of links to recent behavioural finance articles. http://cfa.is/Zr4r5p by Lauren Foster on CFA Institute’s Inside investing. Present bias and future selves.
Continue readingInside investing on the Power of Portfolio Rebalancing
February 22, 2013 0 Comments
Good article by Gregg Fisher CFA on Inside Investing on the power of rebalancing portfolios. Simple rules can control behavioural biases; addresses overconfidence and the endowment effect. http://cfa.is/US419e
Continue readingNew Review of practical Behavioral Economics by Cass Sunstein
February 22, 2013 4 Comments
New insights on behavioural economics by Cass Sunstein of Harvard Law School – the co-author (with Richard Thaler) of Nudge. Applying real-world behavioural economics, using choice architecture and default rules to beat biases In September 2010 David Cameron established a Behavioural Insights Team, nicknamed the “Nudge Unit” to see how to make practical use of […]
Continue readingExpenses really do matter; Low cost funds roll up faster
February 14, 2013 0 Comments
New research in CFA Institute FAJ, by Nobel Laureate, William Sharpe. Fund management expenses really matter. Low cost funds accumulate 20% more in the long run. FAJ Abstract; The Arithmetic of Investment Expenses. Sharpe also on retirement savings and magical thinking.
Continue reading5 key behaviours of underperforming managers
February 14, 2013 0 Comments
New UK research identifies 5 key behaviours of underperforming managers. In FAJ, Greg Richmond and Alistair Byrne explain what happens when managers underperform; loss aversion, confirmation bias, short time horizons. Based on interviews with many firms. Clients, advisors and fund managers themselves should read this http://t.co/WwXrQLc7
Continue reading
Behavioural Edge 