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The performance and fund flows of name-change funds

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  • Arbaa, Ofer
  • Varon, Eva

Abstract

We study 94 equity mutual funds in Israel that change their names 228 times between January 2004 and July 2014. Funds that change their names do not show superior performance in the post-name change period but attract significantly more money flows than a group of control funds. However, funds that frequently change name seem unable to attract additional cash flows relative to funds without name change. Therefore, there is no performance related signaling in the name change and investors eventually lose confidence in the name-change fund. Moreover, flow–performance curve is more convex for name-change funds, similar to advertised mutual funds.

Suggested Citation

  • Arbaa, Ofer & Varon, Eva, 2019. "The performance and fund flows of name-change funds," Journal of Behavioral and Experimental Finance, Elsevier, vol. 22(C), pages 7-13.
    • Handle: RePEc:eee:beexfi:v:22:y:2019:i:c:p:7-13
    DOI: 10.1016/j.jbef.2019.01.003
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    References listed on IDEAS

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    Cited by:

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    2. Shi, Yang & Chen, Shu & Liu, Ruiming & Kang, Yankun, 2022. "Fund renaming and fund flows: Evidence from China's stock market crash in 2015," Economic Modelling, Elsevier, vol. 108(C).

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    More about this item

    Keywords

    Name change; Performance; Mutual fund flows; Convexity;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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