tailieunhanh - Mutual Fund Fees Around the World

Africa is still undergoing a process of economic stabilization, and many countries are facing specific issues of post-conflict reconstruction that call for emergency social funds interven- tions. The region already has the largest concentration of social funds, with the AGETIP agen- cies of West Africa regrouped within AFRICATIP. The social funds of Eastern and Southern Africa will develop their own network to be called Social Funds NET. While AGETIPs have a strong track record with delegated contract management of small-scale infrastructure and public works, the African social funds have concentrated in human resources development (health and education). Once Social Funds NET is operational, the two networks are. | Mutual Fund Fees Around the World Ajay Khorana Citigroup Global Markets Inc. and Georgia Institute of Technology Henri Servaes London Business School CEPR and ECGI Peter Tufano Harvard Business School and NBER Using a new database we study fees charged by 46 580 mutual fund classes offered for sale in 18 countries which account for about 86 of the world fund industry in 2002. We examine management fees total expense ratios and total shareholder costs including load charges . Fees vary substantially across funds and from country to country. To explain these differences we consider fund sponsor and national characteristics. Fees differ by investment objectives larger funds and fund complexes charge lower fees fees are higher for funds distributed in more countries and funds domiciled in certain offshore locations especially when selling into countries levying higher taxes . Substantial cross-country differences persist even after controlling for these variables. These remaining differences can be explained by a variety of factors the most robust of which is that fund fees are lower in countries with stronger investor protection. JEL G2 L11 For investors mutual fund fees are the price paid for investment management distribution and other services for financial service firms they generate revenue. Fees are important for both groups. Higher fees depress investment performance Carhart 1997 while increasing fund companies profitability. We would like to thank Tuugi Chuluun Elizabeth Darst Arik Motskin Debbie Strumsky Lei Wedge and Stefano Rossi for valuable research assistance and an anonymous referee Francesco Bova Peter Bowen Fidelity Canada Marc Buffenoir Morningstar Sally Buxton Cadogan Financial John Campea Morningstar Canada Kurt Cerulli Cerulli Associates Elizabeth Corley Merrill Lynch Investment Managers Joanne De Laurentiis The Investment Funds Institute of Candada Neil Fatherly KPMG Sylvester Flood Morningstar Vito Gala Michele Gambera Morningstar Javier .