Mutual fund managers with “foreign sounding names” get punished relative to “American sounding names,” leading researchers to wonder if certain fund managers might “experience some form of discrimination.”
When operating a mutual fund it is best to have an “American sounding” name and garner media coverage in order to obtain additional assets under management. Further, having a foreign sounding name can cost the fund manager as much as $133,000 in lost fees per $195 million under management.
A new study titled “What’s in a Name? Mutual Fund Flows When Managers Have Foreign-Sounding Names” concludes that the fund manager’s name, particularly if it is "foreign sounding," matters greatly when investors determine their asset allocation plans.
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