RT Journal Article
SR Electronic
T1 Predicting Emerging Market Mutual Fund Performance
JF The Journal of Investing
FD Institutional Investor Journals
SP 111
OP 122
DO 10.3905/joi.2007.694780
VO 16
IS 3
A1 Aron A. Gottesman
A1 Matthew R. Morey
YR 2007
UL https://pm-research.com/content/16/3/111.abstract
AB This article examines the ability of well known mutual fund characteristics, including the expense ratio, turnover, fund size, recent past performance, manager tenure, and Morningstar mutual fund star ratings, to predict emerging market mutual fund performance. We form three separate samples of emerging market mutual funds, adjust the returns for loads, and employ three methods to adjust for survivorship bias. We find that the expense ratio is the only fund characteristic that consistently predicts future fund performance. Specifically, emerging market funds with lower expense ratios predict better future fund performance. We also find some limited evidence that passive management outperforms active management in emerging market funds.TOPICS: Emerging markets, mutual funds/passive investing/indexing, performance measurement