@techreport{NBERw6347,
 title = "The Japanese Open-End Fund Puzzle",
 author = "Stephen J. Brown and William N. Goetzmann and Takato Hiraki and Toshiyuki Otsuki and Noriyoshi Shiraishi",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "6347",
 year = "1998",
 month = "January",
 URL = "http://www.nber.org/papers/w6347",
 abstract = {Recent empirical evidence has suggested that the Japanese mutual fund industry has" underperformed dramatically over the past two decades.  Conjectured reasons for" underperformance range from tax-dilution effects to high fees, high turnover and poor asset" management.  In this paper, we show that this underperformance is largely due to tax-dilution" effects, and not necessarily to poor management.  Using a broad database of funds which" includes investment trusts closed to new investment, we show that once an instrument for the" time-varying tax-dilution exposure is included in a factor model, there is little evidence of poor" risk-adjusted performance.  A style analysis of the industry demonstrates that managers appear to" pursue tax-driven dynamic strategies.},
}