Examining the size effect on the performance of closed-end funds in Canada

Abstract

This paper investigates the relationship between fund size and mutual fund performance. We focus the relationship between closed-end fund size and closed-end fund performance since research work done in this area is very thin. Our sample consists of 161 closed-end funds registered in Canada and currently actively traded. The result suggests that there is no conclusive evidence regarding the relationship between closed-end fund size and closed-end performance. However, evidence shows management style and management expense ratio may have effects on closed-end fund size, while other factors, such as premium offered by closed-end funds, investors sentiments, and risk level of closed-end fund are unrelated with fund size.