Download this Paper Open PDF in Browser

Success and Failure on the Corporate Bond Fund Market

46 Pages Posted: 2 Aug 2014 Last revised: 16 Sep 2017

Martin Rohleder

University of Augsburg

Hendrik Scholz

Friedrich-Alexander-Universität (FAU) Erlangen-Nürnberg

Marco Wilkens

University of Augsburg

Date Written: July 2, 2017

Abstract

We present the first overview of the factors determining success and failure of corporate bond funds in terms of: survival, flow and performance. The main determinant of survival is size. Performance matters only for small funds, consistent with maintaining fee revenues. Flow is strongly related to investors’ chasing performance. However, they are less sensitive to fees than equity fund investors are but funds do not take advantage of it as they display competitive fee setting behavior. Corporate bond funds show no persistence in performance. They also do not suffer from diseconomies of scale, which contrasts previous findings for equity funds.

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 (July 2, 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/

Paper statistics

Downloads
146
Rank
168,548
Abstract Views
783