Investment Europe: ‘Tell me about your childhood’ may become required RFP question

Childhood trauma from a parent’s death or divorce causes mutual fund managers to be more risk averse later in life, finds a new study co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School. “The effect on people’s brains of such childhood experiences has long been reflected in medical literature, but we wanted to test it on how it affects finance professionals later in life. While the study focuses on mutual fund managers, we believe that the findings related to risk-taking behaviour would also apply to other investment professionals,” Professor Rau said.

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