Costly Information, Diversification, and International Mutual Fund Performance

Stefan Engstrom

No 385, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: Active portfolio management is associated with a costly search for information. This paper provides evidence on how this costly search affects the performance of European-based mutual funds that are actively managed and invest in Asia and Europe. The paper examines both the search for superior stocks by fund managers and the search by unit-linked funds for superior fund managers. Moreover, performance and the impact of geographical distance between the fund and the market are examined.

Keywords: Distance; market timing: portfolio evaluation; style analysis; survivorship bias (search for similar items in EconPapers)
JEL-codes: G11 G12 G15 G23 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2000-05-26, Revised 2003-02-04
New Economics Papers: this item is included in nep-fin, nep-fmk and nep-ind
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Published in Pacific-Basin Finance Journal, 2003, pages 463-482.

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Journal Article: Costly information, diversification and international mutual fund performance (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0385

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