An analysis of the relative performance of Japanese and foreign money management

Stephen J. Brown, William N Goetzmann, Takato Hiraki, Noriyoshi Shiraishi

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4 Citations (Scopus)


The increased market share of foreign investment trusts in Japan may be attributed to the fact that Japanese managers have dramatically underperformed benchmarks. Recently, we showed that this underperformance can be attributed to a unique Japanese tax environment. Using data from 1998 though 2001, we find that Japanese and foreign managers are becoming very similar in style and performance. However, Japanese managers suffered in the immediate aftermath of a major April 2000 revision in the tax code. We attribute this result to the huge inflow of new money into this sector and the style shifts necessary to accommodate this flow.

Original languageEnglish
Pages (from-to)393-412
Number of pages20
JournalPacific Basin Finance Journal
Issue number4
Publication statusPublished - Sep 2003
Externally publishedYes


  • Foreign competition
  • Investment styles
  • Investment trust taxation
  • Japanese investment trusts
  • Performance measurement

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