RT Journal Article
SR Electronic
T1 Evidence on the Performance of Infrastructure Mutual Funds
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 102
OP 115
DO 10.3905/jwm.2020.1.110
VO 23
IS 2
A1 Manel Kammoun
A1 Djerry C. Tandja M.
YR 2020
UL https://pm-research.com/content/23/2/102.abstract
AB This article investigates, empirically, whether infrastructure-focused mutual funds provide superior performance (higher alphas) than comparable equity mutual funds not investing in infrastructure. Using monthly returns on US equity mutual funds, the “best clientele performance measure” developed by Chrétien and Kammoun (2017, 1583), and the generalized method of moments estimation, we find that infrastructure-focused mutual funds have higher alphas (higher best clientele alphas) than comparable funds not investing in infrastructure. Our results support the growing belief that infrastructure-focused equity mutual funds are able to provide superior performance resulting from the financial characteristics of infrastructure. Furthermore, our results show that the investor disagreement about the performance of infrastructure-focused equity mutual funds is not significantly different from that of comparable funds not investing in infrastructure.TOPICS: Wealth management, mutual fund performanceKey Findings• The infrastructure-focused equity mutual funds have higher alphas (higher best clientele alphas) than comparable funds not investing in infrastructure.• The investor disagreement about the performance of infrastructure-focused equity mutual funds is not significantly different from that of comparable funds not investing in infrastructure.• Our results support the growing belief about the superior performance of infrastructure-focused equity mutual funds resulting from the financial characteristics of infrastructure.