Another study reveals that fund managers that invest their own funds ultimately produce better results for their investors. The survey by Georgia Institute of Technology and London Business School found managers who had some stake in the funds they handled at the end of 2004 saw returns rise an average of 8.7% the next year, while the funds of non-investing managers grew an average of 6.2%. The study of more than 1,300 U.S. mutual funds concludes that fund performance improved 3 basis points for every 0.01% of manager investment in that fund. According to a Morningstar survey, among the firms with manager investment, Janus Capital Group topped the list with an average of $1 million fund investment per manager; at the bottom of the list was TIAA-CREF, with $10,000 average per manager.
