2022 Hillsdale Investment Management – CFA Society Toronto Research Award Winners

TORONTO, 12 October 2022 – Congratulations to the winners of the 2022 Hillsdale Investment Management – CFA Society Toronto Research Award. This year’s award-winning paper entitled “Outsourced Fund and Risk Taking: A Tale of Two Contracts” is authored by Saurin Patel, Ivey Business School, Western University, Jung Hoon Lee, Owen Graduate School of Management, Vanderbilt University, and Shyam Venkatesan, Ivey Business School, University of Western Ontario. 

“The winning paper highlights the importance of a properly structured incentive agreement, including co-branding, co-management, co-location and performance-based fees, in modifying the asymmetric payoff of a typical investment management contract. The authors find that the introduction of these measures leads to less ‘risk-shifting’ which otherwise leads to significant welfare loss by investors in outsourced funds. We wholeheartedly agree.” said Chris Guthrie, CFA, President and CEO, Hillsdale Investment Management Inc.

The Hillsdale Investment Management – CFA Society Toronto Research Award is open to global researchers conducting research related to Canadian capital markets including both academics (e.g. professors and students) and practitioners. Research papers are reviewed by a panel of CFA charterholder investment experts to ensure they are in line with the rigorous values and standards embodied in the CFA designation.

"Teaming up with CFA Society Toronto to support and encourage applied research efforts aligns with Hillsdale Investment Management’s commitment to continuously invest in our process to produce the highest quality strategies for our clients. We believe our award advances new ideas and innovative concepts for the benefit of the entire investment community,” said Harry Marmer, CFA, Executive Vice President, and partner of Hillsdale Investment Management Inc.

Research Paper Abstract 
“We investigate the effect of compensation contracts on the conditional risk choice of outsourced mutual funds. Unlike the results from the existing literature, outsourced funds display two times more "strategic" risk-shifting than in-house managed funds to maximize the value of payoffs. We further establish that compensation contracts, along with outsourcing status, have a causal effect on risk-shifting. Our evidence shows this behavior to be more consistent with a motive to manage the risk of contract termination and less with the motive to exploit the optionality in portfolio manager compensation contracts. Fund families can employ additional mechanisms to mitigate the intrinsic risk-shifting behavior of the outsourced managers.” 


Media contacts CFA Society Toronto 
Esther Filer
Manager, Marketing and Communications
CFA Society Toronto
Phone: (416) 366-5755 X 235
Twitter: @cfatoronto 

About CFA Society Toronto  
Founded in 1936, CFA Society Toronto is part of the worldwide network of CFA Institute member societies that lead the investment profession globally by promoting the highest standards of ethics, education and professional excellence for the ultimate benefit of society. CFA Society Toronto is the largest Society in over 160 global financial markets representing the interests of more than 11,000 investment professionals in the Greater Toronto Area through advocacy, education, events, and professional development. For more information visit or follow us on Twitter @cfatoronto and on LinkedIn CFA Society Toronto.  

About Hillsdale Investment Management Inc. 
Celebrating over a quarter of a century of investment excellence, Hillsdale Investment Management is an independent, employee-controlled, and client-aligned investment boutique serving a select group of institutional and private wealth investors. Hillsdale engages in disciplined active investment management, specializing in equities, alternatives, ESG, and customized mandates. Hillsdale is recognized for investment and service excellence – a reflection of its relentless pursuit of research and development and of the dedication of its employees. For more information, please refer to

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