Journal of Business & Economics Research – November, 2008 Volume 6, Number 11
81
The Case For Emerging Market Funds
Stuart Michelson, Stetson University, USA
Elena Philipova, Stetson University, USA
Petra Srotova, Stetson University, USA
ABSTRACT...
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Journal of Business & Economics Research – November, 2008 Volume 6, Number 11
81
The Case For Emerging Market Funds
Stuart Michelson, Stetson University, USA
Elena Philipova, Stetson University, USA
Petra Srotova, Stetson University, USA
ABSTRACT
This study investigates the performance of open-end actively managed emerging market mutual
funds during the time period 1999 to 2005.
Our analysis is cross-sectional and time series across
a wide range of emerging markets.
Previous research includes performance studies of
international mutual funds and emerging market funds, but none of the previous studies were as
broad nor as specific as the current study.
Monthly fund returns are compared to three indices
(emerging markets, MSCI, and S&P 500 Index), using annualized returns, Sharpe ratio and
Treynor ratio.
The results show that the emerging market funds outperform the MSCI Index and
the S&P 500 Index, but not the emerging market index.
During the study period, an in
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