Poor Performance of Mutual Funds in Spain: 1991-2007

25 Pages Posted: 8 Apr 2008 Last revised: 27 May 2017

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Vicente J. Bermejo

ESADE Business School

Andrada Bilan

University of Navarra - IESE Business School

Date Written: April 8, 2008

Abstract

During the past 10 and 16 years, the average return on mutual funds in Spain was lower than the average return on government bonds at any term. During the past 10 years, the average return on the funds was lower than inflation. In spite of these results, on December 31st, 2007, 8,264,240 investors held 238.7 billion Euros in the 2,907 existing mutual funds. During 2007, the number of shareholders descended in 555,569 and the value of their assets in 6.1%.

Only 30 of the 935 mutual funds with 10-year history outperformed the benchmark and only two of them outperformed the overall index of the Madrid Stock Exchange (ITBM).

If the return of every mutual fund in the past 16 years had not been the one that was obtained but the benchmark of its category, the appreciation of the funds during 1992-2007 would have been 180 billion, instead of the 80 billion they got. The total of fees and other expenses for the period ascended to 34 billion.

Keywords: mutual funds, Spain, return to shareholders, benchmark, appreciation of the funds, TER

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo and Bermejo, Vicente J. and Bilan, Andrada, Poor Performance of Mutual Funds in Spain: 1991-2007 (April 8, 2008). Available at SSRN: https://ssrn.com/abstract=1117905 or http://dx.doi.org/10.2139/ssrn.1117905

Pablo Fernandez (Contact Author)

University of Navarra - IESE Business School ( email )

Camino del Cerro del Aguila 3
28023 Madrid
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)

HOME PAGE: http://web.iese.edu/PabloFernandez/

Vicente J. Bermejo

ESADE Business School ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

Andrada Bilan

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Register to save articles to
your library

Register

Paper statistics

Downloads
291
Abstract Views
1,398
rank
106,546
PlumX Metrics