Cross-Fund Subsidization in Australian Mutual Fund Families

15 Pages Posted: 27 Aug 2014

See all articles by Tariq H. Haque

Tariq H. Haque

University of Adelaide; Financial Research Network (FIRN)

Date Written: August 25, 2014

Abstract

We study cross-fund subsidization and risk-sharing in five Australian mutual fund families over the period from January 2000 to December 2014. Cross-fund subsidization and risk-sharing were discussed in Gaspar et al (2006). We study cross-fund subsidization which potentially benefits high-fee funds and simultaneously lowers the performance of low-fee funds. We find evidence of cross-fund subsidization in one of the five mutual fund families and evidence of risk-sharing in two of the five mutual fund families.

Keywords: Mutual funds, Mutual Fund Families, Cross-Fund Subsidization

JEL Classification: G20

Suggested Citation

Haque, Tariq H., Cross-Fund Subsidization in Australian Mutual Fund Families (August 25, 2014). 27th Australasian Finance and Banking Conference 2014 Paper. Available at SSRN: https://ssrn.com/abstract=2486609 or http://dx.doi.org/10.2139/ssrn.2486609

Tariq H. Haque (Contact Author)

University of Adelaide ( email )

10 Pulteney St, Adelaide Busines School
Adelaide, South Australia 5005
Australia

Financial Research Network (FIRN)

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

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