The domiciliation decision and performance – evidence from the irish mutual fund industry

• Autor(a) principal: Killeen, Stephen
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/25471
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This study analyses the performance of mutual funds domiciled and managed in Ireland using a survivorship bias controlled sample of 398 funds from the period 2003 to 2015. Ireland has established a reputation as one of the leading international fund domiciles of choice, offering global fund managers a combination of regulatory, legal and tax advantages. Thus, the main purpose of this analysis is to investigate the largely undocumented relation between fund domicile and eventual performance, ultimately determining whether these country-specific benefits facilitate the generation of risk-adjusted outperformance. In addition, the study investigates whether Irish active mutual funds manage to outperform their passive counterparts. Finally, the acclaimed service expertise of Irish based fund managers is scrutinized, by comparing risk-adjusted returns to that of foreign mutual fund managers. Utilizing both single and multi-factor asset-pricing models, the overall results comprehensively suggest that mutual funds domiciled and managed in Ireland do not have the ability to outperform their benchmark. Whilst the results are in line with most US and European studies that similarly report negative risk-adjusted returns, the magnitude of Irish mutual fund underperformance is particularly striking.