We examine the performance of active, global real estate mutual funds (GREMFs), both at sector and individual fund levels. We apply a bootstrap procedure to separate genuine skills from luck. We find no evidence of skills, but find evidence of lack of skills in the bottom 10% of funds. We find that outsourcing has a positive effect on GREMFs but a negative effect on global mutual funds overall. We also find no evidence of skills in timing or in stock selection. Overall, our results suggest that there is no benefit to a U.S. domestic investor from investing in GREMFs.
|Number of pages||32|
|Journal||Journal of Real Estate Research|
|Early online date||4 Apr 2022|
|Publication status||E-pub ahead of print - 4 Apr 2022|
- mutual fund performance
- real state
- global investment