Economics at your fingertips  

The Efficiency of Net Asset Values for Asian-Country Mutual Funds in the US

Oscar Varela

Journal of Business Finance & Accounting, 2002, vol. 29, issue 5&6, 761-786

Abstract: The net asset values for Asian-country mutual funds in the US come from the underlying market's close a half-day earlier and create inefficiencies that improve returns 6 to 12 times in a pure sense. While these are mitigated because of loads, restrictions on trading and fair value pricing, informational biases exist in trading such funds. These can be exploited with a simple rule: If one plans to trade at all, then one should buy (sell) the fund after its own Asian-country index falls (rises). Basing NAVs on the underlying market's close "after" the NY market closes can eliminate this inefficiency. Copyright Blackwell Publishers Ltd 2002.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2020-07-08
Handle: RePEc:bla:jbfnac:v:29:y:2002:i:5&6:p:761-786