RT Journal Article
SR Electronic
T1 Cost Efficiencies in the Management of Commodity Mutual Funds
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 59
OP 70
DO 10.3905/jwm.2018.21.3.059
VO 21
IS 3
A1 D.K. Malhotra
A1 Tim Mooney
A1 Raymond Poteau
YR 2018
UL https://pm-research.com/content/21/3/59.abstract
AB This article examines the determinants of cost efficiencies in the U.S. commodity mutual fund industry from 2001 to 2016. Empirical results show that cost increases in the U.S. commodity mutual fund industry have been less than proportional to increases in fund assets, pointing to economies of scale for the industry. Average cost elasticity varies by fund size, existence of 12b-1 fees, load versus no-load funds, and institutional versus retail funds. Funds without a 12b-1 plan show larger economies of scale than funds with a 12b-1 plan. Institutional funds show greater economies of scale than retail funds since 2010.TOPICS: Mutual funds/passive investing/indexing, commodities, legal/regulatory/public policy, performance measurement