Success and Failure on the Corporate Bond Fund Market

Journal of Asset Management 19(6), 429-443.

43 Pages Posted: 2 Aug 2014 Last revised: 28 Mar 2019

See all articles by Martin Rohleder

Martin Rohleder

University of Augsburg

Hendrik Scholz

Friedrich-Alexander-Universität Erlangen-Nürnberg

Marco Wilkens

University of Augsburg

Date Written: July 5, 2018

Abstract

We present the first broad overview of the factors determining corporate bond fund success and failure in terms of performance and survival. We show that the main determinant of survival is size. Performance matters only for small funds while large funds survive unconditionally, consistent with maintaining fee revenues. We neither find persistence in performance nor diseconomies of scale. This is due to advantages of larger funds in corporate bond trading. Other fund and family characteristics are unrelated to performance and survival, contrasting previous finings in equity funds. Thus, there are similarities but also important differences between the factors determining success and failure 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 (July 5, 2018). Journal of Asset Management 19(6), 429-443.. 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 Erlangen-Nürnberg ( email )

Lange Gasse 20
Lange Gasse 20,
Nürnberg, 90403
Germany

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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