Managerial Tenure And Mutual Fund Performance: Evidence From Index Funds

Abstract

We analyze the impact of managerial tenure on the performance of mutual funds.  We examine different aspects of the mutual funds and relate them to managerial tenure.  We control for risk, asset allocation (North America and Emerging Markets), size, turnover and number of holdings. Based on a sample of index mutual funds, we find that managerial tenure has significant impact of the funds return. The strength of this relation diminishes as performance is measured on longer term basis.  There is no significant direct impact of managerial tenure on expense ratio and rating.