Managerial Multitasking in the Mutual Fund Industry

Agarwal, Vikas and Ma, Linlin and Mullally, Kevin, Managerial Multitasking in the Mutual Fund Industry (April 17, 2023). Financial Analysts Journal, 2023, 79(2): 65–75. DOI: 10.1080/0015198X.2023.2182600. Available at SSRN: https://ssrn.com/abstract=1910367 or http://dx.doi.org/10.2139/ssrn.1910367

27 Pages Posted: 16 Aug 2011 Last revised: 4 May 2023

See all articles by Vikas Agarwal

Vikas Agarwal

Georgia State University - J. Mack Robinson College of Business; University of Cologne - Centre for Financial Research (CFR)

Linlin Ma

Peking University HSBC Business School

Kevin Mullally

University of Central Florida

Date Written: February 14, 2023

Abstract

Managerial multitasking has become a common practice in the mutual fund industry. Although
multitasking may have certain benefits for fund companies and portfolio managers, these
arrangements have significant drawbacks for fund investors. We find that multitasking is
associated with worse fund performance. Moreover, we find significant performance deterioration
when single-tasking managers begin multitasking. We further provide evidence that multitasking
limits the investment options of the fund managers or reduces the attention they allocate to their
funds. Our study prescribes caution when assigning a portfolio manager with a greater workload
as doing so adversely affects fund performance and, at some point, the ability of the fund family
to attract capital.

Keywords: Multitasking, Fund Performance, Fund Flows, Agency Problems

JEL Classification: G10, G20, G23

Suggested Citation

Agarwal, Vikas and Ma, Linlin and Mullally, Kevin, Managerial Multitasking in the Mutual Fund Industry (February 14, 2023). Agarwal, Vikas and Ma, Linlin and Mullally, Kevin, Managerial Multitasking in the Mutual Fund Industry (April 17, 2023). Financial Analysts Journal, 2023, 79(2): 65–75. DOI: 10.1080/0015198X.2023.2182600. Available at SSRN: https://ssrn.com/abstract=1910367 or http://dx.doi.org/10.2139/ssrn.1910367, Available at SSRN: https://ssrn.com/abstract=1910367 or http://dx.doi.org/10.2139/ssrn.1910367

Vikas Agarwal

Georgia State University - J. Mack Robinson College of Business ( email )

35 Broad Street,
Suite 1234
Atlanta, GA 30303-3083
United States
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404-413-7312 (Fax)

HOME PAGE: http://https://sites.google.com/view/vikasagarwal

University of Cologne - Centre for Financial Research (CFR) ( email )

Albertus-Magnus Platz
Cologne, 50923
Germany

Linlin Ma (Contact Author)

Peking University HSBC Business School ( email )

Kevin Mullally

University of Central Florida ( email )

412 CBA
Orlando, FL 32827
United States
407-823-2360 (Phone)

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