Is conflicted investment advice better than no advice?

• 成果类型: Article
• 署名作者: Chalmers, John; Reuter, Jonathan
• 署名单位: University of Oregon; Boston College; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2020.05.005
• 发表日期: 2020
• 页码: 366-387
• 关键词: Investment advice; Broker; counterfactual; default; retirement plan; Target date fund

摘要

The benefit of investment advice depends on the quality of advice and the investor's counterfactual portfolio. We use changes in the Oregon University System Optional Retirement Plan to highlight the impact of plan design on the counterfactual portfolios of advice seekers. When brokers are available and target date funds (TDFs) are not, brokers help participants with high predicted demand for advice bear market risk, but they recommend higher-commission options. When brokers are removed and TDFs are added, new highpredicted-demand participants primarily invest in TDFs, which offer similar market risk but higher Sharpe ratios than the broker-advised portfolios within our sample. (C) 2020 Elsevier B.V. All rights reserved.