How Important is the Distribution Channel for Mutual Fund Flows?

Publikation: KonferencebidragPaperForskningpeer review

Resumé

We use bank failures to analyse exogenous variation in the distribution channel of bankaffiliated mutual funds. Our contribution is three-fold. First, we establish a causal effect from the distribution channel of mutual funds to retail investors’ fund portfolios. As our main empirical result, we secondly document that the magnitude of flows induced by changes in the distribution channel is large; it drives at least a third of households’ mutual fund choices. Third, we show that mutual fund flows are not directed into high-rated funds. We conclude that the distribution channel has a large, causal, and detrimental impact on investors’ portfolios.
OriginalsprogEngelsk
Publikationsdato2020
Antal sider53
StatusUdgivet - 2020
BegivenhedThe 80th Annual Meeting of American Finance Association. AFA 2020 - San Diego, USA
Varighed: 3 jan. 20205 jan. 2020
Konferencens nummer: 80
https://afajof.org/annual-meeting/

Konference

KonferenceThe 80th Annual Meeting of American Finance Association. AFA 2020
Nummer80
LandUSA
BySan Diego
Periode03/01/202005/01/2020
Internetadresse

Emneord

  • Mutual funds
  • Retail investors
  • Fund flows
  • Distribution channel

Citer dette

Florentsen, B., Nielsson, U., Raahauge, P., & Rangvid, J. (2020). How Important is the Distribution Channel for Mutual Fund Flows?. Afhandling præsenteret på The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA.
Florentsen, Bjarne ; Nielsson, Ulf ; Raahauge, Peter ; Rangvid, Jesper. / How Important is the Distribution Channel for Mutual Fund Flows?. Afhandling præsenteret på The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA.53 s.
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Florentsen, B, Nielsson, U, Raahauge, P & Rangvid, J 2020, 'How Important is the Distribution Channel for Mutual Fund Flows?' Paper fremlagt ved The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA, 03/01/2020 - 05/01/2020, .

How Important is the Distribution Channel for Mutual Fund Flows? / Florentsen, Bjarne; Nielsson, Ulf; Raahauge, Peter; Rangvid, Jesper.

2020. Afhandling præsenteret på The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA.

Publikation: KonferencebidragPaperForskningpeer review

TY - CONF

T1 - How Important is the Distribution Channel for Mutual Fund Flows?

AU - Florentsen, Bjarne

AU - Nielsson, Ulf

AU - Raahauge, Peter

AU - Rangvid, Jesper

PY - 2020

Y1 - 2020

N2 - We use bank failures to analyse exogenous variation in the distribution channel of bankaffiliated mutual funds. Our contribution is three-fold. First, we establish a causal effect from the distribution channel of mutual funds to retail investors’ fund portfolios. As our main empirical result, we secondly document that the magnitude of flows induced by changes in the distribution channel is large; it drives at least a third of households’ mutual fund choices. Third, we show that mutual fund flows are not directed into high-rated funds. We conclude that the distribution channel has a large, causal, and detrimental impact on investors’ portfolios.

AB - We use bank failures to analyse exogenous variation in the distribution channel of bankaffiliated mutual funds. Our contribution is three-fold. First, we establish a causal effect from the distribution channel of mutual funds to retail investors’ fund portfolios. As our main empirical result, we secondly document that the magnitude of flows induced by changes in the distribution channel is large; it drives at least a third of households’ mutual fund choices. Third, we show that mutual fund flows are not directed into high-rated funds. We conclude that the distribution channel has a large, causal, and detrimental impact on investors’ portfolios.

KW - Mutual funds

KW - Retail investors

KW - Fund flows

KW - Distribution channel

KW - Mutual funds

KW - Retail investors

KW - Fund flows

KW - Distribution channel

M3 - Paper

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Florentsen B, Nielsson U, Raahauge P, Rangvid J. How Important is the Distribution Channel for Mutual Fund Flows?. 2020. Afhandling præsenteret på The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA.