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Characteristics of active MFs indicative of future performance: might there be more?

heezsafe
edited November 2015 in Fund Discussions
https://www.onefpa.org/journal/Pages/NOV15-Updated-Advice-on-Mutual-Fund-Selection.aspx

"Over the past three years, academic research has revealed new characteristics to look for in an actively managed mutual fund. In 2012, I suggested that financial planners look for funds with a high level of fund manager ownership, board of director ownership, a short-term redemption fee, a high active share or low R-squared value, and that lack affiliation with an investment bank. Recent research shows that financial planners should also look for funds that manage their portfolios in-house, outsource the execution of their shareholder services, have managers with performance-linked bonuses, and have a key role in their fund family performed by someone with a Ph.D. Each of these characteristics are associated with outperformance. "

I'd like to see a little math. It's early for these.

Comments

  • VintageFreakVintageFreak
    Agree. All this research, rarely translates to something actionable for individual investors. And advisors (aka brokers) doing this for clients....BS. Besides, WTF do I need research to tell me to buy funds with manager ownership and R-squared, etc. I already know that.
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