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

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...

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Bibliographic Details
Main Author: Brandão-Marques, Luis
Other Authors: Gelos, Gaston, Ichiue, Hibiki, Oura, Hiroko
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Finance 
653 |a Industries: Financial Services 
653 |a Regimes 
653 |a Exports and Imports 
653 |a Money 
653 |a International Financial Markets 
653 |a Capital flows 
653 |a Standards 
653 |a Bonds 
653 |a Currencies 
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653 |a Government and the Monetary System 
653 |a Institutional Investors 
653 |a Pension Funds 
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653 |a Monetary economics 
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653 |a Financial Instruments 
653 |a Current Account Adjustment 
653 |a Balance of payments 
653 |a Long-term Capital Movements 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Investments: Bonds 
653 |a International economics 
653 |a Non-bank Financial Institutions 
653 |a Investments: Stocks 
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520 |a 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