We hypothesize that social trust, in mitigating contracting incompleteness, may have an important effect on the activeness and effectiveness of delegated portfolio management. Using a complete sample of worldwide open-end mutual funds, we find that trust is positively associated with the activeness of funds and that trust-related active share delivers superior performance (e.g., approximately 2% per year for cross-border investments). Moreover, “trust in the market” and “trust in managers” play important yet different roles for different types of cross-border delegated portfolio management. Our results suggest that trust acts as a fundamental building block for delegated portfolio management.

中文翻译：

---

投资低信任国家：论社会信任在全球共同基金行业中的作用

我们假设社会信任在减轻合同不完整性方面可能对委托投资组合管理的积极性和有效性产生重要影响。使用全球开放式共同基金的完整样本，我们发现信任与基金的活跃度呈正相关，并且与信任相关的活跃份额提供了卓越的表现（例如，跨境投资每年约为 2%）。此外，“对市场的信任”和“对管理者的信任”在不同类型的跨境委托投资组合管理中扮演着重要但不同的角色。我们的结果表明，信任是委托投资组合管理的基本组成部分。