Timid Performance Fees in Mutual Funds

Abstract

el articulo estudia las repercusiones en captación de fondos y en medidas de rentabilidad de la estructura de comisiones de exito vigente en España desde el año 2008

In this study, we empirically explore the implications of a non-standard mutual fund performance-fee structure. This contract deviates from the designs recommended in previous literatures, in that, it lacks a benchmark portfolio and fails to apply a high-performance fee component, making a timid attempt to align investors and managers interests. Using a panel data model, we compare the risk-adjusted performance measures for funds with and without performance fees, within the same investment policies. Some investment categories that charge a performance fee component, earn superior risk-adjusted returns; additionally, they attract investors. The empirical implications of this study backs up the prevailing theory.