Determinants of the Development of Fixed Income Mutual Funds in Brazil [Condicionantes do Crescimento dos Fundos Mutuos de Renda Fixa no Brasil]

RAUSP - Revista de Administração da Universidade de São Paulo, v.43,n.3,p.250-262, 2008

15 Pages Posted: 14 Jun 2008 Last revised: 9 Oct 2008

See all articles by Robert Aldo Iquiapaza

Robert Aldo Iquiapaza

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD)

Francisco Vidal Barbosa

affiliation not provided to SSRN

AMARAL, H. F.

CEPEAD - UFMG

Aureliano A. Bressan

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD)

Abstract

The aim of this research was to identify the determinants of the development of the fixed income mutual funds in Brazil through the study of net money flows, from February 1995 to September 2004. The data were analyzed by multiple regression analysis of monthly series. Looking for robustness of the results, the classic OLS estimators were compared with restricted M-estimators. The significant determinants were: the excess of return in relation to the savings account rate, the growth of per capita GDP, the lower interest rates and the less volatility or risk. The introduction of valuation at market prices for fixed income assets, in circumstances of instability in the market, national and international, motivated important redemptions in 2002. Furthermore, for investors of exclusive funds were identified indicators of larger sophistication. These results permit to define strategies for managing these institutions.

Keywords: net money flows, fixed income funds, mutual fund industry, M-estimators, econometric models.

JEL Classification: C22,G23

Suggested Citation

Iquiapaza, Robert Aldo and Vidal Barbosa, Francisco and Amaral, Hudson Fernandes and Bressan, Aureliano Angel, Determinants of the Development of Fixed Income Mutual Funds in Brazil [Condicionantes do Crescimento dos Fundos Mutuos de Renda Fixa no Brasil]. RAUSP - Revista de Administração da Universidade de São Paulo, v.43,n.3,p.250-262, 2008, Available at SSRN: https://ssrn.com/abstract=1143802

Robert Aldo Iquiapaza (Contact Author)

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD) ( email )

Av. Antônio Carlos 6627 - Pampulha
Faculdade de Ciências Econômicas
Belo Horizonte, MG 31270-901
Brazil

HOME PAGE: http://www.cepead.face.ufmg.br

Francisco Vidal Barbosa

affiliation not provided to SSRN

Hudson Fernandes Amaral

CEPEAD - UFMG ( email )

Rua Curitiba 832 11º And Centro
Belo Horizonte, MG 30120170
Brazil

Aureliano Angel Bressan

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD) ( email )

Av. Antonio Carlos, 6627
MG30170-120 Belo Horizonte, 31270-901
Brazil

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
243
Abstract Views
1,565
rank
151,734
PlumX Metrics