St Andrews Research Repository

St Andrews University Home
View Item 
  •   St Andrews Research Repository
  • University of St Andrews Research
  • University of St Andrews Research
  • University of St Andrews Research
  • View Item
  •   St Andrews Research Repository
  • University of St Andrews Research
  • University of St Andrews Research
  • University of St Andrews Research
  • View Item
  •   St Andrews Research Repository
  • University of St Andrews Research
  • University of St Andrews Research
  • University of St Andrews Research
  • View Item
  • Login
JavaScript is disabled for your browser. Some features of this site may not work without it.

Islamic mutual funds' financial performance and international investment style : evidence from 20 countries

Thumbnail
View/Open
hoepner2011eurojfinance829.pdf (337.0Kb)
Date
11/2011
Author
Hoepner, Andreas Gerhard
Rammal, HG
Rezec, Michael
Keywords
Fund manager learning
Home bias
Islamic finance
Islamic mutual funds
Responsible investment
Three level Carhart model
HB Economic Theory
Metadata
Show full item record
Abstract
We pursue the first large scale investigation of a strongly growing mutual fund type: Islamic funds. Based on an unexplored, survivorship bias adjusted dataset, we analyse the financial performance and investment style of 265 Islamic equity funds from twenty countries. As Islamic funds often have diverse investment regions, we develop a (conditional) three level Carhart model to simultaneously control for exposure to different national, regional and global equity markets and investment styles. Consistent with recent evidence for conventional funds, we find Islamic funds to display superior learning in more developed Islamic financial markets. While Islamic funds from these markets are competitive to international equity benchmarks, funds from especially Western nations with less Islamic assets tend to significantly underperform. Islamic funds’ investment style is somewhat tilted towards growth stocks. Funds from predominantly Muslim economies also show a clear small cap preference. These results are consistent over time and robust to time varying market exposures and capital market restrictions.
Citation
Hoepner , A G , Rammal , HG & Rezec , M 2011 , ' Islamic mutual funds' financial performance and international investment style : evidence from 20 countries ' , European Journal of Finance , vol. 17 , no. 9-10 , pp. 829-850 . https://doi.org/10.1080/1351847X.2010.538521
Publication
European Journal of Finance
Status
Peer reviewed
DOI
https://doi.org/10.1080/1351847X.2010.538521
ISSN
1351-847X
Type
Journal article
Rights
© 2011 Taylor & Francis. This is an Accepted Manuscript of an article published in the European Journal of Finance on 1 March 2011, available online: http://www.tandfonline.com/10.1080/1351847X.2010.538521
Collections
  • University of St Andrews Research
URI
http://hdl.handle.net/10023/4821

Items in the St Andrews Research Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

Advanced Search

Browse

All of RepositoryCommunities & CollectionsBy Issue DateNamesTitlesSubjectsClassificationTypeFunderThis CollectionBy Issue DateNamesTitlesSubjectsClassificationTypeFunder

My Account

Login

Open Access

To find out how you can benefit from open access to research, see our library web pages and Open Access blog. For open access help contact: openaccess@st-andrews.ac.uk.

Accessibility

Read our Accessibility statement.

How to submit research papers

The full text of research papers can be submitted to the repository via Pure, the University's research information system. For help see our guide: How to deposit in Pure.

Electronic thesis deposit

Help with deposit.

Repository help

For repository help contact: Digital-Repository@st-andrews.ac.uk.

Give Feedback

Cookie policy

This site may use cookies. Please see Terms and Conditions.

Usage statistics

COUNTER-compliant statistics on downloads from the repository are available from the IRUS-UK Service. Contact us for information.

© University of St Andrews Library

University of St Andrews is a charity registered in Scotland, No SC013532.

  • Facebook
  • Twitter