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Media type:
E-Article
Title:
INVESTOR REACTION TO MUTUAL FUND PERFORMANCE: EVIDENCE FROM UK DISTRIBUTION CHANNELS
Contributor:
Keswani, Aneel;
Stolin, David
Published:
Wiley, 2012
Published in:
Journal of Financial Research, 35 (2012) 3, Seite 425-450
Language:
English
DOI:
10.1111/j.1475-6803.2012.01323.x
ISSN:
0270-2592;
1475-6803
Origination:
Footnote:
Description:
AbstractExisting work on the flow–performance relation in mutual funds focuses on the average U.S. investor, obscuring the contributions of different clienteles. We analyze UK data on monthly fund sales and purchases made via seven distinct distribution channels. We show that there exist marked differences in the reaction to fund performance between different types of retail and institutional investors. These differences can be understood by considering the incentives of parties involved in each channel. Our analysis indicates that the well‐documented aggregate net flow–performance convexity in mutual funds is driven by the extreme reaction of retail inflows to favorable performance, particularly from independently advised investors.