CharrĂ³n, Marta; Torrez, Jimmy
September 2011
International Journal of Business Research;2011, Vol. 11 Issue 5, p166
Academic Journal
This paper examines the performance of closed-end funds that invest at least 25% of their holdings in securities outside the U.S., namely emerging, global, developed and Pacific ex-Japan funds. Performance is examined using a style analysis (Sharpe 1992) where the regional exposure of the funds is estimated using daily returns and four factors representing investments in the emerging economies of Asia, Eastern Europe, Latin America, and an index for the cash holdings of the funds. Results indicate that most of the funds in the sample invest a larger proportion of their portfolio in Latin America, followed by Europe and then Asia. Results also show that closed-end funds have a large proportion of cash holdings in their portfolios. Stock selection ability of fund managers is also examined. We find no evidence of managerial ability.


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