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The Lure of the Brand: Evidence from the European Mutual Fund Industry

Author

Listed:
  • Fabian Irek,
  • Jan Jaap Hazenberg
  • Willem van der Scheer

    (LSF Mariela Stefanova)

Abstract

We investigate the effect of the fund provider s brand on mutual fund flows by using a unique data set that represents a direct assessment of the brand image of European fund providers. A superior brand image increases the sensitivity of flows to past performance, while an inferior brand decreases it. Funds with a superior brand are not protected against outflows when there is underperformance. A superior brand, coupled with high past performance, generates persistent inflows and performance persistence so investors will benefit when a superior brand fund with high past performance is chosen.

Suggested Citation

  • Fabian Irek, & Jan Jaap Hazenberg & Willem van der Scheer, 2013. "The Lure of the Brand: Evidence from the European Mutual Fund Industry," DEM Discussion Paper Series 13-8, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:13-8
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    File URL: http://wwwen.uni.lu/content/download/64515/813074/file/Binder8_The%20Lure%20of%20the%20Brand_Evidence%20from%20the%20European%20Mutual%20Fund%20Industry_July%202013.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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