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Success and Failure on the Corporate Bond Fund Market

43 Pages Posted: 2 Aug 2014 Last revised: 24 Nov 2017

Martin Rohleder

University of Augsburg

Hendrik Scholz

Friedrich-Alexander-Universität (FAU) Erlangen-Nürnberg

Marco Wilkens

University of Augsburg

Date Written: November 22, 2017

Abstract

We present the first broad overview of the factors determining corporate bond fund success and failure in terms of: survival, flow and performance. The main determinant of survival is size. Performance matters only for small funds while large funds survive unconditionally, consistent with maintaining fee revenues. Corporate bond fund investors chase performance, but only of large funds. We neither find persistence in performance nor diseconomies of scale. The latter is due to advantages of larger funds in corporate bond trading. Thus, there are similarities but also important differences between the success factors on the corporate bond and equity fund markets.

Keywords: Corporate bond funds, performance, disappearance and survival, fund size, flow

JEL Classification: G11, G12

Suggested Citation

Rohleder, Martin and Scholz, Hendrik and Wilkens, Marco, Success and Failure on the Corporate Bond Fund Market (November 22, 2017). Available at SSRN: https://ssrn.com/abstract=2475000 or http://dx.doi.org/10.2139/ssrn.2475000

Martin Rohleder (Contact Author)

University of Augsburg ( email )

Universitaetsstr. 16
Augsburg, 86159
Germany
+49 821 598 4120 (Phone)

Hendrik Scholz

Friedrich-Alexander-Universität (FAU) Erlangen-Nürnberg ( email )

Finance and Banking
Lange Gasse 20
Nürnberg, Bavaria 90403
Germany
0049-911-5302649 (Phone)
0049-911-5302466 (Fax)

HOME PAGE: http://www.finanzierung.wiso.uni-erlangen.de

Marco Wilkens

University of Augsburg ( email )

Universitaetsstr. 16
Augsburg, 86159
Germany
+49 821 598 4124 (Phone)
+49 821 598 4223 (Fax)

HOME PAGE: http://www.wiwi.uni-augsburg.de/bwl/wilkens/team/wilkens_marco/

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