Variable	Definition
Panel A: Fund characteristics
Raw return	Fund return in local currency (percentage per quarter), calculated by adding back fund expense ratio to net raw return.
One-factor alpha	Net one-factor alpha (percentage per quarter) is estimated with three years of past monthly fund excess returns in local currency. We use local factors (fund domicile) for domestic funds, regional factors for regional funds, and world factors for global funds. Regional factors include Asia-Pacific, Europe, North America, and Emerging Markets, and the classification is based on the fund’s investment region using data on fund’s domicile country and fund’s geographic investment style provided by the Lipper database.
Four-factor alpha	Net four-factor alpha (percentage per quarter) is estimated with three years of past monthly fund excess returns in local currency. We use local factors (fund domicile) for domestic funds, regional factors for regional funds, and world factors for global funds. Regional factors include Asia-Pacific, Europe, North America, and Emerging Markets, and the classification is based on the fund´s investment region using data on fund’s domicile country and fund’s geographic investment style provided by the Lipper database.
Size	Total net assets in millions of U.S. dollars (Lipper).
Family size	Family total net assets in millions of U.S. dollars of other equity funds in the same management company excluding the own fund TNA (Lipper).
Age	Number of years since the fund launch date (Lipper).
Fees	Total shareholder charges estimated as total expense ratio plus one-fifth of loads (Lipper).
Flows	Percentage growth in TNA (in local currency) in a quarter, net of internal growth (assuming reinvestment of dividends and distributions).
SMB	Loadings on the small minus big size factor (SMB) from four-factor alpha regressions. For domestic funds, we use the domestic SMB from the domestic four-factor alpha regressions, for regional funds we use the regional SMB from the four-factor alpha calculated using the region specific factors, and for global funds we use the SMB from the four-factor alpha calculated using global factors.
HML	Loadings on the high minus low factor (HML) from four-factor alpha regressions. For domestic funds, we use the domestic HML from the domestic four-factor alpha regressions, for regional funds we use the regional HML from the four-factor alpha calculated using the region specific factors, and for global funds we use the HML from the four-factor alpha calculated using global factors.
Countries sold	The number of countries where the fund is sold
Panel B: Country characteristics
Internet	Ratio between number of internet users and the population (World Development Indicators).
Financial literacy	Percentage of adults who are financially literate [31] .
Financial sophistication	Financial sophistication of retail investors in a country measured by the World Economic Forum in the annual Global Competitiveness Report using the question “The level of sophistication of financial markets is higher than international norms”.