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Are there disadvantaged clienteles in mutual funds?

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  • Jank, Stephan

Abstract

This paper studies the flow-performance relationship of three different investor groups in mutual funds: Households, financial corporations, and insurance companies and pension funds, establishing the following findings: Financial corporations have a strong tendency to chase past performance and also hold an increased share in the top performing funds. Insurance companies and pension funds show some evidence of performance chasing, but are underrepresented in the best performing funds. Households chase performance, but they are also subject to status quo bias in their flows. Regarding investor composition the worst performing funds show no significant difference in their investor structure when compared to funds with average performance.

Suggested Citation

  • Jank, Stephan, 2010. "Are there disadvantaged clienteles in mutual funds?," Discussion Paper Series 2: Banking and Financial Studies 2010,11, Deutsche Bundesbank.
    • Handle: RePEc:zbw:bubdp2:201011
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    File URL: https://www.econstor.eu/bitstream/10419/43886/1/643972641.pdf
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    References listed on IDEAS

    as
    1. Guercio, Diane Del & Tkac, Paula A., 2002. "The Determinants of the Flow of Funds of Managed Portfolios: Mutual Funds vs. Pension Funds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 37(4), pages 523-557, December.
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    Cited by:

    1. Sebastian Müller & Martin Weber, 2014. "Evaluating the Rating of Stiftung Warentest: How Good Are Mutual Fund Ratings and Can They Be Improved?," European Financial Management, European Financial Management Association, vol. 20(2), pages 207-235, March.

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    More about this item

    Keywords

    Mutual Funds; Flow-Performance Relationship; Clientele;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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