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On the performance of Bank-managed mutual funds: Canadian evidence

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  • Greg Hebb

    (Dalhousie University)

Abstract

Commercial bank involvement in the mutual fund industry has been growing globally for the last few decades. General perception of the performance of these bank-managed funds has been negative. Academic studies of the issue have had varying results. This paper examines the issue in Canada where bank and independent funds have similar overall market shares and thus market power is not an issue. Our results show that after properly accounting for double-clustering, risk-adjusted returns are not significantly different between the two groups. Systematic risk, however, is different for equity funds but not for bond or balanced funds. These findings will be useful for both regulators and individual investors.

Suggested Citation

  • Greg Hebb, 2021. "On the performance of Bank-managed mutual funds: Canadian evidence," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(1), pages 22-48, January.
    • Handle: RePEc:spr:jecfin:v:45:y:2021:i:1:d:10.1007_s12197-020-09518-4
    DOI: 10.1007/s12197-020-09518-4
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    References listed on IDEAS

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    More about this item

    Keywords

    Mutual funds; Fund performance; Commercial banks;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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