Disentangling domiciles and investor locations in international mutual fund data

31 Pages Posted: 23 Nov 2021

Date Written: November 20, 2021

Abstract

We reconcile investor locations with legal domiciles for a large sample of mutual funds from different countries. In general, legal domiciles provide reasonable proxies for investor locations but with several concerns for funds domiciled in Europe. In our analysis, the fund hub of Luxembourg is not the primary source of bias when models of investor location are estimated with domicile level data. We find that when using domicile level data to proxy for investor locations, flow values are most biased for funds domiciled in the UK, Austria, and Germany. Coefficient estimates for a flow-performance model are most biased for German passive equity funds and Irish passive bond funds. A diseconomies of scale model and a price pressure model are best specified when funds from all domiciles are retained in the sample.

Keywords: fund flows; international mutual funds; Eurofidai; domiciles; investor locations; UCITS; Luxembourg

JEL Classification: F21, F36, F55, G15, G23, K33, R39

Suggested Citation

Rakowski, David A., Disentangling domiciles and investor locations in international mutual fund data (November 20, 2021). Available at SSRN: https://ssrn.com/abstract=3968100 or http://dx.doi.org/10.2139/ssrn.3968100

David A. Rakowski (Contact Author)

University of Texas at Arlington ( email )

Box 19449 UTA
Arlington, TX 76019
United States

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