Mutual Fund Connections, Investment Strategy Distinctiveness and Performance

Project Member(s): Casavecchia, L.

Funding or Partner Organisation: Accounting and Finance Association of Australia and New Zealand (Accounting & Finance Association of Australia and New Zealand - Research Grants)

Start year: 2014

Summary: Previous academic research has focused on how the similarity in mutual fund portfolio holdings affects fund performance. This research project will highlight one of the factors that could drive such portfolio holdings commonalities, namely mutual fund connectedness. Using several social network proxies for the degree of fund connectedness based on the number of fund managers shared simultaneously with other funds in the same management company, we will investigate the implications of fund connections for performance and investment strategy distinctiveness. This analysis is important given the recent trend in the fund management industry to intensify direct and indirect connections among funds.

FOR Codes: Industry Costs and Structure, Financial Institutions (incl. Banking), Industrial Organisations, Financial institutions (incl. banking)

Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.