Next Seminar:

Cesario Mateus, Professor, Aalborg University Business School 

2026-10-05, Monday, 11:40-12:40 (Budapest time)  

Institute of Finance - Room E.279.1. (Corvinus main building E, second floor) 

Title: Persistence of Outperformance in Actively Managed US Fixed Income Funds 

 Abstract: In this paper, we revisit the question of actively managed US fixed income mutual fund performance and persistence in performance. We create a multi-factor model that accounts for two aspects of performance that investors value most: performance relative to a fund’s self-reported benchmark and performance relative to its peer group. The model we propose in this paper adopts the Mateus et al. (2025) MMT framework tested in the equity mutual fund universe and modifies it for use with bond funds. Using the Morningstar fixed income style box, we select 220 funds with moderate interest-rate sensitivity and medium credit quality from 1995 to 2022 and construct contingency tables to assess their persistence in performance. Our findings show that the MMT model can be applied to fixed income mutual funds, identifying that winner funds deliver persistent outperformance for different holding periods and market regimes and thereby demonstrating the model’s practical feasibility. 

• Read Prof. Cesario Mateus’s publications: https://scholar.google.com/citations?user=MYPvrVUAAAAJ&hl=en  

• Consult the schedule of upcoming seminars:  https://sites.google.com/view/finance-seminars/schedule   

Please note that this Microsoft Teams link is provided only for those unable to attend the seminar in person at Corvinus University of Budapest, Institute of Finance, E.279.1. The seminar will generally be held offline.

Read more about some researchers who have already presented at our Research Seminar