On the performance of emerging market equity mutual funds

Joop Huij, Thierry Post

Research output: Contribution to journalArticle

24 Citations (Scopus)

Abstract

We document persistence in the performance of emerging market equity funds and find several notable differences compared to US equity funds. First, the contribution of winner funds to the return spread between winner and losers is substantially larger for emerging market funds. Second, only a small portion of the return spread between winners and losers can be attributed to momentum effects in emerging markets. Third, winner funds in emerging markets generate returns that are sufficiently large enough to cover their expenses. Overall, our findings suggest that emerging market funds generally display better performance than US funds.

Original languageEnglish
Pages (from-to)238-249
Number of pages12
JournalEmerging Markets Review
Volume12
Issue number3
DOIs
Publication statusPublished - Sep 2011
Externally publishedYes

Fingerprint

Mutual funds
Equity
Emerging markets
Market returns
Persistence
Expenses
Momentum effect

Keywords

  • Emerging markets
  • Equity mutual funds
  • Momentum
  • Performance persistence
  • Size effect
  • Value effect

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

Cite this

On the performance of emerging market equity mutual funds. / Huij, Joop; Post, Thierry.

In: Emerging Markets Review, Vol. 12, No. 3, 09.2011, p. 238-249.

Research output: Contribution to journalArticle

@article{f8a75527adfa4b8bad0bcd17b0fff382,
title = "On the performance of emerging market equity mutual funds",
abstract = "We document persistence in the performance of emerging market equity funds and find several notable differences compared to US equity funds. First, the contribution of winner funds to the return spread between winner and losers is substantially larger for emerging market funds. Second, only a small portion of the return spread between winners and losers can be attributed to momentum effects in emerging markets. Third, winner funds in emerging markets generate returns that are sufficiently large enough to cover their expenses. Overall, our findings suggest that emerging market funds generally display better performance than US funds.",
keywords = "Emerging markets, Equity mutual funds, Momentum, Performance persistence, Size effect, Value effect",
author = "Joop Huij and Thierry Post",
year = "2011",
month = "9",
doi = "10.1016/j.ememar.2011.03.001",
language = "English",
volume = "12",
pages = "238--249",
journal = "Emerging Markets Review",
issn = "1566-0141",
publisher = "Elsevier",
number = "3",

}

TY - JOUR

T1 - On the performance of emerging market equity mutual funds

AU - Huij, Joop

AU - Post, Thierry

PY - 2011/9

Y1 - 2011/9

N2 - We document persistence in the performance of emerging market equity funds and find several notable differences compared to US equity funds. First, the contribution of winner funds to the return spread between winner and losers is substantially larger for emerging market funds. Second, only a small portion of the return spread between winners and losers can be attributed to momentum effects in emerging markets. Third, winner funds in emerging markets generate returns that are sufficiently large enough to cover their expenses. Overall, our findings suggest that emerging market funds generally display better performance than US funds.

AB - We document persistence in the performance of emerging market equity funds and find several notable differences compared to US equity funds. First, the contribution of winner funds to the return spread between winner and losers is substantially larger for emerging market funds. Second, only a small portion of the return spread between winners and losers can be attributed to momentum effects in emerging markets. Third, winner funds in emerging markets generate returns that are sufficiently large enough to cover their expenses. Overall, our findings suggest that emerging market funds generally display better performance than US funds.

KW - Emerging markets

KW - Equity mutual funds

KW - Momentum

KW - Performance persistence

KW - Size effect

KW - Value effect

UR - http://www.scopus.com/inward/record.url?scp=79955157394&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79955157394&partnerID=8YFLogxK

U2 - 10.1016/j.ememar.2011.03.001

DO - 10.1016/j.ememar.2011.03.001

M3 - Article

VL - 12

SP - 238

EP - 249

JO - Emerging Markets Review

JF - Emerging Markets Review

SN - 1566-0141

IS - 3

ER -