Record Details

Fund Manager Overconfidence, Fund Flow Determinants, Compensation Incentives and Performance of Mutual Funds in Kenya: A Critical Literature Review

Journal of Insurance and Financial Management

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Title Fund Manager Overconfidence, Fund Flow Determinants, Compensation Incentives and Performance of Mutual Funds in Kenya: A Critical Literature Review
 
Creator Omondi, Ojwang’ George George
 
Description This review seeks to investigate the relationship between fund manager overconfidence and performance of mutual funds under the intervention of fund flows and moderation of compensation incentives. Actively managed mutual funds continue to co-exist side by side with index funds despite cost differentials between them.  A fundamental question has been whether these actively managed funds add value to their investors by producing superior returns commensurate with added managerial input or not. In a bid to post positive alphas and improve their compensation incentives, fund managers rely on past returns, intuition and gut feeling to build their confidence levels as they make their daily portfolio balancing acts. Overconfident fund managers who post positive alphas receive increased fund inflows leading to better compensation incentives and more visible fund families.
 
Publisher Journal of Insurance and Financial Management
 
Contributor —
 
Date 2016-12-27
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/69
 
Source Journal of Insurance and Financial Management; Vol 2, No 4 (2016): Journal of Insurance and Financial Management
2371-2112
 
Language eng
 
Relation https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/69/pdf
 
Rights Copyright (c) 2016 Ojwang’ George George Omondi
http://creativecommons.org/licenses/by/4.0