The performance of diversified emerging market equity funds

Do mutual funds remain persistent? Evidence from Pakistan

“…They report that positive or negative performance is attributable to good or bad luck only. The lack of long-term persistence is in consistent with literature (Carhart, 1997;Hameed & Wazir, 2015;Basu & Huang-Jones, 2015;Benos & Jochec, 2011) highlight various reasons for lack of long-term persistence. The reasons can be an increase in management fee charged by good performing funds or desire of successful managers to hunt for more lucrative opportunities.…”

“…They argue that positive or negative performance is attributable to good or bad luck only. Basu and Huang-Jones (2015) analyse the performance and persistence by using data of 498 mutual funds for the period 2000 to 2010 of emerging economies. They employ rank portfolio approach, dividing funds into equally weighted deciles, placing winners into decile 10 and losers to decile 1.…”

Exposition to Factors of the Investment Funds Market in Brazil

“…Th ese results are in line with the H 1 proposed in this study, supporting the studies by Malaquias (2012) and Scolese et al (2015), by expecting that the composition of portfolios of multimarket funds refl ects various investment styles in these funds, and the study by Basu and Huang-Jones (2015), which claims that variable income funds in emerging markets off er diversifi cation benefi ts. In order to test the H 2 , which involves the variation of sensitivity of funds' returns to macroeconomic factors over time, we have, in Appendix A, results of the t-test of exposure to factors of portfolios for the 10 years covered by the sample.…”

“…Finally, in order to contribute to the literature on emerging markets and given the opportunity to invest in these markets (Basu & Huang-Jones, 2015), we suggest that this study is expanded to other Latin American countries in search of new knowledge in the economic context of this region. We also suggest to carry out new studies involving other categories of multimarket funds, since this study considered, in the composition of its database, only Long & Short multimarket funds.…”

“…According to Lechman and Marszk (2015), we must pay attention to emerging markets in order to expose the development of their fi nances. Moreover, from the viewpoint of Basu and Huang-Jones (2015), investing resources in these markets has been a tendency among investors of developed nations in the last two decades, when they face the potential for higher returns and risk reduction through portfolio diversifi cation.…”