On the Performance of Emerging Market Equity Mutual Funds

Posted: 1 May 2011

See all articles by Joop Huij

Joop Huij

Erasmus University - Rotterdam School of Management; Robeco; Erasmus University Rotterdam (EUR) - Erasmus Research Institute of Management (ERIM)

Thierry Post

Graduate School of Business of Nazarbayev University

Multiple version iconThere are 2 versions of this paper

Date Written: April 29, 2011

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, performance persistence, size effect, value effect, momentum

JEL Classification: G11, G12, G14

Suggested Citation

Huij, Joop and Post, Thierry, On the Performance of Emerging Market Equity Mutual Funds (April 29, 2011). Emerging Markets Review, Vol. 12, 2011. Available at SSRN: https://ssrn.com/abstract=1825966

Joop Huij (Contact Author)

Erasmus University - Rotterdam School of Management ( email )

P.O. Box 1738
Rotterdam, 3000 DR
Netherlands

HOME PAGE: http://www.rsm.nl/jhuij

Robeco

Rotterdam, 3014DA
Netherlands

HOME PAGE: http://www.robeco.com/

Erasmus University Rotterdam (EUR) - Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
Rotterdam, 3000 DR
Netherlands

Thierry Post

Graduate School of Business of Nazarbayev University ( email )

53 Kabanbay Batyra Avenue
Astana, 010000
Kazakhstan

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