RT Journal Article
SR Electronic
T1 Exposing Management Characteristics in Mutual Fund Performance
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 60
OP 66
DO 10.3905/jii.2012.2.4.060
VO 2
IS 4
A1 Qiang Bu
YR 2012
UL https://pm-research.com/content/2/4/60.abstract
AB This article examines the relation between manager tenure, team management, and fund performance. Findings demon - strate that longer manager tenure improves fund performance and that the relationship is dependent on market states. In a down market of low market return and high volatility, manager tenure has a statistically significant positive impact on fund performance. This effect becomes less important, or even negative, in a boom. The times series properties of fund returns show that experienced fund managers, on average, earn higher returns and take on lower risk. In conclusion, manager exp - erience matters, especially in a volatile market. No difference was found in return or risk-taking behavior between teammanaged funds and individually managed funds.TOPICS: Manager selection, performance measurement, mutual fund performance