Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets

Author/Editor:

Luis Brandao-Marques ; R. G Gelos ; Hibiki Ichiue ; Hiroko Oura

Publication Date:

December 28, 2015

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

An analysis of mutual-fund-level flow data into EM bond and equity markets confirms that different types of funds behave differently. Bond funds are more sensitive to global factors and engage more in return chasing than equity funds. Flows from retail, open-end, and offshore funds are more volatile. Global funds are more stable in their EM investments than “dedicated” EM funds. Differences in the stability of flows from ultimate investors play a key role in explaining these patterns. The changing mix of global investors over the past 15 year has probably made portfolio flows to EMs more sensitive to global financial conditions.

Series:

Working Paper No. 15/277

Subject:

English

Publication Date:

December 28, 2015

ISBN/ISSN:

9781513555560/1018-5941

Stock No:

WPIEA2015277

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

36

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