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Is prior performance priced through closed-end fund discounts?
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 investors do not appear to gain anything by responding to past performance information. This behaviour can be explained by the fact that past performance is effectively unpriced in the unit trust market, since management fees are unresponsive to demand. If investors believe that there is a non-zero probability that future performance will turn out to be positively correlated with past performance (i.e. that there is an element of managerial skill in performance), but a zero probability that this correlation will be negative, it is rational to prefer funds with better past performance when performance is not priced. In other words, it costs nothing to insure against the possibility of some managerial
Wiley InterScience

Feedstock for Biodiesel Converts Food Scrap Waste into Natural Oils
The natural oils will be used for biodiesel feedstock and specialty chemical applications.
IndustryWeek

Martin Currie to expand in Asia and Europe
MARTIN Currie Investment Management, the international fund manager based in Edinburgh, is to open an office in Switzerland and grow its Asian operation as part of its oversea
Scotsman

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