Title: Investigating the factors affecting the performance of offshore high-yield bond funds

Authors: Yensen Ni; Paoyu Huang; Yaochia Ku; Yuhsin Chen

Addresses: Department of Management Sciences, Tamkang University, New Taipei, Taiwan ' Department of International Business, Soochow University, Taipei, Taiwan ' Department of Management Sciences, Tamkang University, New Taipei, Taiwan ' Department of Banking and Finance, Tamkang University, New Taipei, Taiwan

Abstract: We investigate the factors affecting the performance of offshore high-yield bond funds and reveal two impressive findings, which might contribute to the existing literature. First, we disclose that the funds registered in Luxembourg perform better than those registered in Ireland, which seems unrevealed in the existing literature. Second, we show that the funds with high volatilities might not have better performance. We infer that high volatilities incorporating systematic and unsystematic risks might not enhance bond returns, even though we reveal that systematic risks would enhance bond returns in this study.

Keywords: high-yield bond funds; asset allocation; fund performance; funds registered; systematic risks; unsystematic risks; volatilities; bond returns; Morningstar rating; place registered.

DOI: 10.1504/IJFSM.2018.093866

International Journal of Financial Services Management, 2018 Vol.9 No.3, pp.242 - 254

Received: 03 Oct 2017
Accepted: 05 Apr 2018
Published online: 07 Aug 2018 *

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