Absence of Value: An Analysis of Investment Allocation Decisions by Institutional Plan Sponsors PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. Financial Analysts Journal November/December 2009 | Vol. 65 | No. 6 | 17 pages Source: CFA InstituteScott D. Stewart, CFA John J. Neumann Christopher R. Knittel Jeffrey Heisler, CFA US$0.00 Member | US$0.00 Candidate | US$15.00 Nonmember Read Abstract To determine whether the investment decisions of institutional plan sponsors contribute to their asset values, this study used a dataset of 80,000 yearly observations of institutional investment product assets, accounts, and returns for 1984−2007. Results show that plan sponsors may not be acting in their stakeholders’ best interests when they make rebalancing or reallocation decisions. Investment products that receive contributions subsequently underperform products experiencing withdrawals over one, three, and five years. For investment decisions among equity, fixed-income, and balanced products, most of the underperformance can be attributed to product selection. Tests suggest that these results are not attributable to survivorship or other biases. Much like individual investors who switch mutual funds at the wrong time, institutional investors do not appear to create value from their investment decisions. Self-test View more information Topics Performance Measurement and Evaluation : Performance Attribution | Portfolio Management : Asset Allocation · Investment Manager Selection · Portfolio Construction and Revision Credits · About the CE Program 1 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: Top Hedge Fund Investors: Stories, Strategies, and Advice This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Credit Suisse Global Wealth Databook This Databook displays the detailed dataset backing the "Credit Suisse Global Wealth Report," the comprehensive study of world ... More Loading ...