Decision processes in German mutual fund companies: evidence from a telephone survey

The performance of actively managed mutual funds is largely dependent upon the investment decisions of the fund managers. The purpose of this study is to examine the decision processes in German fund companies and their impact on fund performance.

The paper uses a telephone survey to assess the behavior and attitudes of German mutual fund managers. The design of the survey allows a linkage of fund manager data with information about mutual funds and fund management companies.

The evidence shows firstly, that it is possible to conduct a high quality survey study even though managers know that their answers will be linked to their performance and secondly, that the behavior of managers depends heavily on the characteristics of the funds and the characteristics of the fund company.

In the paper, factors are identified which influence the short‐term performance of fund managers. In further studies, one should examine whether these factors also determine the long‐term performance of fund managers.

This is the first survey study that attempts to link the information provided by fund managers to information about the funds and fund companies.