Finding your calling: Matching skills with jobs in the mutual fund industry

61 Pages Posted: 21 Jan 2021 Last revised: 27 Dec 2021

See all articles by Gjergji Cici

Gjergji Cici

University of Kansas - School of Business

Mario Hendriock

University of Cologne - Department of Finance; University of Cologne - Centre for Financial Research (CFR)

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR)

Date Written: November 18, 2020

Abstract

To best utilize labor, companies need to match employees’ skills with jobs that best fit those skills. Exploiting unique features of the mutual fund industry, we identify instances when this matching happens for fund managers and study its consequences. After fund managers are matched, they operate at higher productivity levels, exhibiting risk-adjusted performance improvement of 139-193 bps per year. Fund families use this information to maximize family value by reallocating existing and directing new capital to their matched managers, collecting higher fees from the matched managers’ funds, and spreading the expertise of matched managers to other managers in the family.

Keywords: human capital, mutual funds, occupational match finding

JEL Classification: G23, J24, J62, M50

Suggested Citation

Cici, Gjergji and Hendriock, Mario and Kempf, Alexander, Finding your calling: Matching skills with jobs in the mutual fund industry (November 18, 2020). Available at SSRN: https://ssrn.com/abstract=3732930 or http://dx.doi.org/10.2139/ssrn.3732930

Gjergji Cici

University of Kansas - School of Business ( email )

Capitol Federal Hall
1654 Naismith Drive
Lawrence, KS 66045
United States
785-864-3873 (Phone)

HOME PAGE: http://business.ku.edu/gjergji-cici

Mario Hendriock (Contact Author)

University of Cologne - Department of Finance ( email )

Cologne, 50923
Germany

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

Albertus-Magnus Platz
Cologne, 50923
Germany

Alexander Kempf

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

Cologne, 50923
Germany
+49 221 470 2714 (Phone)
+49 221 470 3992 (Fax)

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