Yet Another Puzzle? The Relation between Price and Performance in the Mutual Fund Industry

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The Performance of Socially Responsible Mutual Funds: The Role of Fees and Management Companies (2010, neutral): “Hamilton et al. (1993) find that young SRI funds outperformed a random sample of conventional funds in the period 1981-1990 (with performance defined as after-expense Jensen’s alpha), although results revert for seasoned funds.”
The Determinants of Mutual Fund Performance: A Cross-Country Study (2013, neutral): “To examine the determinants of the performance of funds that invest overseas, we use both domestic and foreign benchmarks (Griffin (2002)).”
Risk Shifting and Mutual Fund Performance (2010, neutral): “Gil-Bazo and Ruiz-Verdu (2009) find that high-expense funds do not perform better than low-expense funds, even before subtracting expenses.”
Bringing cost transparency to the life annuity market (2014, background): “For example, in the related mutual fund market, fees can be too high (e.g., see Crespo 2009 for the Spanish mutual fund market, and Gil-Bazo and Ruiz-Verdú 2009 for the U.S. market) and brokers can offer no tangible benefits in exchange for high distribution fees (Bergstresser et al., 2009).”
What Drives Market Share in the Mutual Fund Industry (2012, positive): “This result holds even using returns computed gross of expenses, consistent with Gil-Bazo and Ruiz-Verdu’s (2009) finding that the worst performing funds on a pre-expense basis have the highest expense ratios.”