Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets
Electronic Access:
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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. 2015/277
Subject:
Balance of payments Bonds Capital flows Currencies Financial institutions Money Mutual funds Stocks
English
Publication Date:
December 28, 2015
ISBN/ISSN:
9781513555560/1018-5941
Stock No:
WPIEA2015277
Pages:
36
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