2026-09-20T01:55:54Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/1446222022-08-30T03:21:06Zcom_1721.1_7582com_1721.1_7581col_1721.1_131022
So, Eric
Verdi, Rodrigo
Choi, Ki-Soon
Sloan School of Management
2022-08-29T16:00:13Z
2022-08-29T16:00:13Z
2022-05
2022-06-09T14:30:42.010Z
https://hdl.handle.net/1721.1/144622
I study whether increased transparency of fund portfolio disclosures improves outcomes for mutual fund investors. Exploiting the staggered adoption of the SEC's Form N-PORT, which improved the quality and quantity of information on fund strategies and risk profiles, I find a reduction in performance manipulation and managerial rent extraction, evidenced by decrease in risk shifting and management fees. The results are pronounced among funds that offer institutional share classes, suggesting that institutional investors benefit more from the new disclosures. I also show that investors become better at allocating capital to funds that will perform well in the future. Collectively, my findings highlight the role of portfolio disclosures in mitigating agency problems in delegated asset management by affecting managers' and investors' investment decisions.
Ph.D.
Massachusetts Institute of Technology
In Copyright - Educational Use Permitted
Copyright MIT
http://rightsstatements.org/page/InC-EDU/1.0/
The Role of Portfolio Disclosures in the Mutual Fund Industry
Thesis
application/pdf
Doctoral
Doctor of Philosophy
Publication
unknown
unknown
<Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="b2128676-bcf7-475a-8664-ffbd5dafb402">
<Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type>
<Title>The Role of Portfolio Disclosures in the Mutual Fund Industry</Title>
<PublishedIn>
<Publication>
</Publication>
</PublishedIn>
<PublicationDate>2022-05</PublicationDate>
<Authors>
<Author>
<DisplayName>Choi, Ki-Soon</DisplayName>
<Affiliation>
<OrgUnit>
</OrgUnit>
</Affiliation>
</Author>
</Authors>
<Editors>
</Editors>
<Publishers>
<Publisher>
<DisplayName>Massachusetts Institute of Technology</DisplayName>
<OrgUnit />
</Publisher>
</Publishers>
<License>http://rightsstatements.org/page/InC-EDU/1.0/</License>
<Abstract>I study whether increased transparency of fund portfolio disclosures improves outcomes for mutual fund investors. Exploiting the staggered adoption of the SEC's Form N-PORT, which improved the quality and quantity of information on fund strategies and risk profiles, I find a reduction in performance manipulation and managerial rent extraction, evidenced by decrease in risk shifting and management fees. The results are pronounced among funds that offer institutional share classes, suggesting that institutional investors benefit more from the new disclosures. I also show that investors become better at allocating capital to funds that will perform well in the future. Collectively, my findings highlight the role of portfolio disclosures in mitigating agency problems in delegated asset management by affecting managers' and investors' investment decisions.</Abstract>
<Access xmlns="http://purl.org/coar/access_right"
>
</Access>
</Publication>