Does Mutual Fund Family Size Matter? International Evidence

26 Pages Posted: 24 Oct 2019

See all articles by Antonio F. Miguel

Antonio F. Miguel

Instituto Universitário de Lisboa (ISCTE - IUL)

Liu Xiayue

Instituto Universitário de Lisboa - ISCTE-IUL

Date Written: October 13, 2019

Abstract

We use data from 33 countries to study how a fund’s affiliation with large families impacts the shape of the flow-performance relationship. Our results show that family size affects the response of fund flows to performance differently depending on the sophistication of the investors. While less sophisticated investors are swayed by the visibility of funds affiliated with large and established families, more sophisticated investors are not. Affiliation with a large family increases the convexity of the flow-performance relationship in countries where investors are less sophisticated, but it decreases the convexity of the flow-performance relationship in countries with more sophisticated investors.

Keywords: Mutual funds, Flow-performance relationship, Fund family size, Investor sophistication

JEL Classification: G15, G23

Suggested Citation

Miguel, Antonio Freitas and Xiayue, Liu, Does Mutual Fund Family Size Matter? International Evidence (October 13, 2019). Available at SSRN: https://ssrn.com/abstract=3470323 or http://dx.doi.org/10.2139/ssrn.3470323

Antonio Freitas Miguel (Contact Author)

Instituto Universitário de Lisboa (ISCTE - IUL) ( email )

Av. das Forcas Armadas
Lisboa, 1649-026
Portugal
+351 217 903 000 (Phone)

Liu Xiayue

Instituto Universitário de Lisboa - ISCTE-IUL ( email )

Portugal

Register to save articles to
your library

Register

Paper statistics

Downloads
9
Abstract Views
86
PlumX Metrics