2010•Journal of Central South University(Social Science)Requires access
The Incentive of Fund Managers: A Survey about Delegated Portfolio Management
Wu Chen
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Abstract
Securities investment fund is an important form of delegated portfolio management.Fund managers are the core of the fund,who largely determine the fund performance and the interests of investors.Therefore,the incentive of fund managers is the internal demand of delegated portfolio management system.This paper reviews the following four aspects of delegated portfolio management concerning the incentive of fund managers: the explanation of investment behavior of fund managers,the characteristics of the linear incentive contract of fund managers,the influence of symmetrical and incentive fee to the risk selection of fund managers and the effect of relative performance to the risk-taking of fund managers.Finally,the paper discusses the problems of the present studies,noting that the research should focus on the influence mechanism of fund managers’ investment behavior and the research of related fund management mechanisms.