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Are higher fees justified by superior performance ? Evidence from Belgian mutual funds

Veithen, Joan ULiège
Promotor(s) : Bazgour, Tarik ULiège
Date of defense : 23-Jun-2016/28-Jun-2016 • Permalink :
Title : Are higher fees justified by superior performance ? Evidence from Belgian mutual funds
Author : Veithen, Joan ULiège
Date of defense  : 23-Jun-2016/28-Jun-2016
Advisor(s) : Bazgour, Tarik ULiège
Committee's member(s) : Berners, David 
Sougné, Danielle ULiège
Language : English
Discipline(s) : Business & economic sciences > Finance
Institution(s) : Université de Liège, Liège, Belgique
Degree: Master en sciences de gestion, à finalité spécialisée en Banking and Asset Management
Faculty: Master thesis of the HEC-Ecole de gestion de l'Université de Liège


[en] In this study, I use a data sample consisting of open-end equity mutual funds from the Belgian mutual fund market over the period 2005-2015. Previous literature found mainly that fund performance is negatively related to the expense ratio and positively related to total fund assets. My findings confirm that there is a statistically significant negative relationship between performance and expenses, indicating inefficient use of resources. In addition, I determine a significant positive relation between performance and total assets. This results suggests economies of scales in larger funds. Furthermore, I find that mutual funds generally underperform the market. Moreover, I do not find any correlation between age, front loads, rear loads and performance. In conclusion, investors are better off buying funds with lower expense ratios.



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  • Veithen, Joan ULiège Université de Liège > Master sc. gest., fin. spéc. banking & asset (ex 2e master)


Committee's member(s)

  • Berners, David
  • Sougné, Danielle ULiège Université de Liège - ULg > HEC-Ecole de gestion de l'ULg : UER > Gestion financière et consolidation
    ORBi View his publications on ORBi
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