Cross-Fund Subsidization in Australian Mutual Fund Families
15 Pages Posted: 27 Aug 2014
Date Written: August 25, 2014
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: Suggested Citation