Behavioural biases in asset management: the case of Moroccan bank-affiliated asset managers

PurposeThe asset management industry has experienced a major evolution in Morocco. Since the mid-1990s, it has contributed to the financing of public spending in the country. At this time, the industry began to play an important role in financing the Moroccan economy and has since experienced constant growth. Today, with 582 undertakings for collective investment in transferable securities managed, it is a real vehicle for collecting savings and boosting financial markets, according to the president of the Association of Management Companies and Investment Funds (ASFIM). The objective of this research is to analyse the behavioural biases impacting the decisions of asset managers affiliated with Moroccan banks. This study aims to highlight these biases in light of the existing literature in behavioural finance.Design/methodology/approachThe study employs an empirical approach, conducting semi-structured interviews with 14 asset managers from 7 different Moroccan banks. The research focuses on three main behavioural finance models. The first is related to the models of KAHENMAN and TVERSKY. The second relates to the model of the economist SHILLER, and finally, a proposal is in line with the models of SHEFRIN and STATMAN.FindingsThe results provide evidence of the presence of specific psychological biases in the decision-making processes of asset managers when buying and selling on the Casablanca Stock Exchange. In particular, the study shows that their investment decisions were significantly affected by loss aversion and overconfidence.Originality/valueThis research contributes to the understanding of how behavioural biases influence asset management decisions in the Moroccan context. It adds to the limited literature on behavioural finance in emerging markets, particularly focusing on the asset management industry in Morocco.