We examine pure no-load funds over a 5-year period. For equity funds, trading activity is negatively related to returns. Expense ratios are not significantly related to returns. Potential capital gains exposure and tax cost ratio are positively related to return. For fixed income funds, trading activity is positively related to return. Expense ratios and tax cost ratios are negatively related t...

Recent studies have documented a positive relation between active management and mutual fund performance. We show that this relation holds only for fund managers who trade in an optimal way. The optimality measure that we develop, “investment alpha”, captures whether a mutual fund is trading towards mean-variance optimality, which, we argue, is the first best choice for mutual fund managers. Th...

Most studies on mutual fund outsourcing have focused the U.S. market. The objective of our study is to investigate determinants decision outsource and impact performance in European market differs from one terms structure. In U.S., banks play a minor role while situation Europe opposite: Banks dominate market, independent companies roles. This difference structure can both relationship between ...