Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets

37 Pages Posted: 28 Mar 2016

See all articles by Luis Brandao-Marques

Luis Brandao-Marques

International Monetary Fund - Monetary and Capital Markets Department

Gaston Gelos

International Monetary Fund

Hibiki Ichiue

International Monetary Fund (IMF)

Hiroko Oura

International Monetary Fund (IMF)

Date Written: December 2015

Abstract

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.

Keywords: Capital flows, emerging markets, mutual funds, flows, portfolio, bond, equity, portfolio flows, All Countries,

JEL Classification: F32, G15, G23

Suggested Citation

Brandao-Marques, Luis and Gelos, R. Gaston and Ichiue, Hibiki and Oura, Hiroko, Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets (December 2015). IMF Working Paper No. 15/277. Available at SSRN: https://ssrn.com/abstract=2754911

Luis Brandao-Marques (Contact Author)

International Monetary Fund - Monetary and Capital Markets Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States
2026238308 (Phone)
2025898308 (Fax)

R. Gaston Gelos

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Hibiki Ichiue

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Hiroko Oura

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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