In open-end funds, net inflows are positively correlated with past performance. This study investigates how past net asset value (NAV) returns affect the premium on closed-end funds traded in the United States and the United Kingdom. Past performance is significantly priced in stock funds,...

In open-end mutual funds (unit trusts), there is a strong positive cross-sectional relationship between net inflows to individual funds and past performance, as if investors attributed performance to managerial skill. Performance shows only very weak persistence, however, so at first sight...

Purpose – The purpose of this paper is to examine the conditions under which discount risk leads to closed-end funds trading at a discount. Design/methodology/approach – A model of investor portfolio choice is developed in which investors face proportional fees for holding managed funds but...