NewswireToday - /newswire/ -
Zurich, Switzerland, 2008/11/19 - Banque Privee Espirito Santo & the Swiss Finance Institute are proud to announce Laurent Barras, Olivier Scaillet & Russ Wermers as winners of a new private banking prize to acknowledge research findings on the performance of mutual fund managers - SFI.ch.
The research highlights a gradual decline in positive performance, measured as performance minus management fees, of actively managed US mutual funds. Crucially, it identifies a novel method to reveal when good fund performance can be attributed to chance alone, and is therefore likely to deteriorate in the long term. These findings have application for banks such as Banque Privée Espírito Santo, especially for the objective selection of fund managers.
The 20,000 CHF prize was received in person by Professor Olivier Scaillet, who holds a Swiss Finance Institute Research Fellowship, and Professor Russ Wermers, University of Maryland. "We thank Banque Privée Espírito Santo for acknowledging the contribution of this research to the practice of private banking," said Professor Jean-Pierre Danthine, Managing Director of the Swiss Finance Institute.
The work appears in a research paper entitled "False Discoveries in Mutual Fund Performance: Measuring Luck in Estimated Alphas". The paper can be found online in the Social Science Research Network (SSRN) Swiss Finance Institute Research Paper Series. The Series is jointly coordinated with NCCR FINRISK (Financial Valuation and Risk Management).
About the Swiss Finance Institute
The Swiss Finance Institute (swissfinanceinstitute.ch) is a private foundation created in 2006 by Switzerland's banking and finance community in cooperation with leading Swiss universities. It supports and advances research, doctoral training and executive education in banking and finance. The Institute is supported by the Swiss banks, the Swiss Stock Exchange, Swiss universities and the Swiss Federal Government.
Established in Switzerland since 1977, Banque Privee Espirito Santo is a Swiss bank that is part of the Portuguese Group Espirito Santo, whose origins date back to 1869. Banque Privée Espírito Santo has been active in Lausanne since 1977.
The Bank has CHF 9.2 Billion in assets under management and employs a staff of 155.