Industry Allocation of Equity Funds

28 Pages Posted: 22 Aug 2014

See all articles by Rui Chen

Rui Chen

Central University of Finance and Economics (CUFE)

Adam James Corbett

The University of Sydney - Discipline of Finance; Financial Research Network (FIRN)

Date Written: August 21, 2014

Abstract

Industry allocation preferences of equity fund managers are examined to identify how style investing from industry-dimensions influence fund performance and flows. Using Australian equity fund data, we show that the level of Industry Activeness, Industry Rotation and Industry Rotation Sensitivity, which are three market-relative industry allocation metrices, significantly affect both the performance and flows of retail and wholesale equity funds. These findings illustrate the significance of industry allocations in the role of style investing.

Keywords: Industry allocation, Fund flows, Fund performance, Style investing

Suggested Citation

Chen, Rui and Corbett, Adam James, Industry Allocation of Equity Funds (August 21, 2014). Available at SSRN: https://ssrn.com/abstract=2484498 or http://dx.doi.org/10.2139/ssrn.2484498

Rui Chen

Central University of Finance and Economics (CUFE) ( email )

39 South College Road
Haidian District
Beijing, Beijing 100081
China

Adam James Corbett (Contact Author)

The University of Sydney - Discipline of Finance ( email )

P.O. Box H58
Sydney, NSW 2006
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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