Bhattacharya, Utpal
[Verfasser:in]
;
Lee, Jung Hoon
[Sonstige Person, Familie und Körperschaft];
Pool, Veronika Krepely
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Forthcoming: Journal of Finance
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 31, 2012 erstellt
Beschreibung:
We analyze the investment behavior of affiliated funds of mutual funds (AFoMFs), which are mutual funds that can only invest in other funds in the family, and are offered by most large families. Though never mentioned in any prospectus, we discover that AFoMFs provide an insurance pool against temporary liquidity shocks to other funds in the family. We show that though the family benefits because funds can avoid fire-sales, the cost of this insurance is borne by the investors in the AFoMFs. The paper thus uncovers some of the hidden complexities of fiduciary responsibility in mutual fund families