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Costly information, diversification and international mutual fund performance

  • Engstrom, Stefan

Active portfolio management is associated with a costly search for information. This paper provides evidence on how this costly search affects the performance of European-based mutual funds that are actively managed and invest in Asia and Europe. The paper examines both the search for superior stocks by fund managers and the search by unit-linked funds for superior fund managers. Moreover, performance and the impact of geographical distance between the fund and the market are examined.

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Article provided by Elsevier in its journal Pacific-Basin Finance Journal.

Volume (Year): 11 (2003)
Issue (Month): 4 (September)
Pages: 463-482

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Handle: RePEc:eee:pacfin:v:11:y:2003:i:4:p:463-482
Contact details of provider: Web page: http://www.elsevier.com/locate/pacfin

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