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Most of the investors delegate the management of their wealth to intermediaries that manage investment funds. Hence, from 1980 to 2007, the percentage of American households owning mutual funds rose from 5.7 to 43.6% (Investment Company Institute (2007)). The fraction of total equity owned by those investment vehicles has been increasing steadily and has recently increased to 32.4% by the end of 2007 (French(2008)). The fact that those investments are delegated to third parties leads to an agency problem. In that respect, the optimal compensation rules have received a lot of attention (Stracca(2005)). The role of the organizational structure, however, has not received that much attention. A recent paper by Chen et al. (2010) analyzes how outsourcing of the fund management may impact...
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