Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 16, 2003 erstellt
Beschreibung:
This study analyzes the distribution of investment horizons in a large, proprietary panel of all shareholders in one no-load mutual fund family. A duration model shows that there are observable shareholder characteristics that enable the fund to predict reliably on the day each account is opened whether the account will be short-term or long-term. A simulation shows that the costs imposed on the fund by the expected short-term shareholders are greater than those imposed by the expected long-term shareholders. The pooling of both investor types in one fund costs the expected long-term shareholders 51 basis points annually in foregone returns. Trade-offs between pooling and separating predictably different shareholders are discussed