U.S. Mutual Fund Retail Investors in International Equity Markets: Is the Tail Wagging the Dog?
Electronic Access:
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Summary:
Do the dynamics of net flows to U.S. retail mutual funds affect equity returns in emerging markets? The question merits further examination since retail investors in mutual funds can exert a much greater degree of "control" over these funds via cash injections or redemptions at any time. A VAR analysis shows increased discrimination across emerging market regions after the Asian crisis as investors focused on individual regions rather than on emerging markets as a generic asset class. Crossover funds allocations also appear to affect emerging market returns. Furthermore, investment decisions by fund managers seem to be largely driven by retail investor allocations.
Series:
Working Paper No. 2005/162
Subject:
Emerging and frontier financial markets Financial institutions Financial markets Money markets Mutual funds Stock markets Stocks
English
Publication Date:
August 1, 2005
ISBN/ISSN:
9781451861815/1018-5941
Stock No:
WPIEA2005162
Pages:
22
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