The performance persistence of foreign closed-end funds.
A sample of 26 foreign bond and 95 foreign equity closed-end funds is used to determine whether foreign closed-end funds exhibit performance persistence (PP). Persistence is measured using two different performance measures, net asset value (NAV) returns and market price (MP) returns. The results show that foreign closed-end equity funds exhibit persistence of MP performance. These results are generally robust with respect to the holding period. In general, the PP results are mainly attributed to winning funds. A comparison of foreign to domestic closed-end funds finds that foreign closed-end equity funds exhibit less PP than domestic equity funds.
Madura, J., & Bers, M. K. (2002). The performance persistence of foreign closed-end funds. Review of Financial Economics, 11(4), 263-285. doi:10.1016/S1058-3300(02)00042-3
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