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What Determines Fund Performance Persistence? International Evidence

Ferreira, M., Keswani, A. ORCID: 0000-0001-9096-7677, Miguel, A. F. and Ramos, S. (2019). What Determines Fund Performance Persistence? International Evidence. Financial Review, doi: 10.1111/fire.12202

Abstract

We study performance persistence across a global sample of equity mutual funds from 27 countries. In contrast to the existing U.S.-based evidence, we find that net performance persistence is present in the majority of fund industries, suggesting that fund manager skill is commonplace rather than a rarity. Consistent with the intuition that more competition in the mutual fund industry makes remaining a winner fund less likely but keeping a loser fund at the bottom of the performance ranks more probable, we show that competitiveness explains the cross-sectional variation in performance persistence.

Publication Type: Article
Additional Information: This is the peer reviewed version of the following article: Ferreira, M., Keswani, A. , Miguel, A. F. and Ramos, S. (2019). What Determines Fund Performance Persistence? International Evidence. Financial Review, which has been published in final form at https://doi.org/10.1111/fire.12202. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Publisher Keywords: mutual fund persistence, manager skill, fund industry competition
Subjects: H Social Sciences > HG Finance
Departments: Cass Business School > Finance
URI: http://openaccess.city.ac.uk/id/eprint/22084
[img] Text - Accepted Version
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