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The performance persistence of foreign closed‐end funds

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  • Jeff Madura
  • Martina K. Bers

Abstract

A sample of 26 foreign bond and 95 foreign equity closed‐end funds is used to determine whether foreign closed‐end funds exhibit performance persistence (PP). Persistence is measured using two different performance measures, net asset value (NAV) returns and market price (MP) returns. The results show that foreign closed‐end equity funds exhibit persistence of MP performance. These results are generally robust with respect to the holding period. In general, the PP results are mainly attributed to winning funds. A comparison of foreign to domestic closed‐end funds finds that foreign closed‐end equity funds exhibit less PP than domestic equity funds.

Suggested Citation

  • Jeff Madura & Martina K. Bers, 2002. "The performance persistence of foreign closed‐end funds," Review of Financial Economics, John Wiley & Sons, vol. 11(4), pages 263-285.
    • Handle: RePEc:wly:revfec:v:11:y:2002:i:4:p:263-285
    DOI: 10.1016/S1058-3300(02)00042-3
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