Format:
1 Online-Ressource
Series Statement:
NBER working paper series working paper 16629
Content:
"This paper studies how portfolios with a global investment scope are actually allocated internationally using a unique micro dataset on U.S. equity mutual funds. While mutual funds have great flexibility to invest globally, they invest in a surprisingly limited number of stocks, around 100. The number of holdings in stocks and countries from a given region declines as the investment scope of funds broadens. This restrictive investment practice has costs. A mean-variance strategy shows unexploited gains from further international diversification. Mutual funds investing globally could achieve better risk-adjusted returns by broadening their asset allocation, including stocks held by more specialized funds within the same mutual fund family (company). This investment pattern is not explained by lack of information or instruments, transaction costs, or a better ability of global funds to minimize negative outcomes. Instead, industry practices related to organizational factors seem to play an important role"--National Bureau of Economic Research web site
Note:
Includes bibliographical references. - Title from PDF file as viewed on 4/7/2011
Additional Edition:
Didier, Tatiana Unexploited gains from international diversification
Language:
English
DOI:
10.1596/1813-9450-5524
URL:
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