Changes in the Names of Polish Investment Funds vs. Fund Flows

Artur Arkadiusz Trzebiński

Abstract


There was conducted a survey on a sample of 176 Polish investment funds. It studied how the name changes affected the size of fund flows in the years 2008–2016. In the analysis of these changes, there were applied three criteria. The first was a change in the name of the fund resulting from the change of the name of the management company. The second criterion was the ability to combine new fund names with their investment strategies. The resulting set of changes was divided into positive changes (the new name suggested a new investment style for the fund), neutral and negative (fund names were not linked to the investment policy). The third criterion were the types of funds (there were four groups of changes: for equity, mixed equity, debt and money market funds). In order to determine the impact of changes in fund names on fund flows, there were used differences in average fund flows before and after changes. For detailed results, a second method was used – event analysis.

Based on the results of the study, it can be concluded that changes in fund names have an impact on the size of fund flows even within a period of up to twelve months. The largest inflow of capitals to funds was demonstrated for positive changes, especially in the period from four to nine months after the change. In turn, the largest outflow of capital for negative changes was noted mainly in the period from seven to twelve months.

Keywords


investment funds; name changes; fund flows

Full Text:

PDF

References


ARC, Raport z badania wizerunku funduszy inwestycyjnych, 2015, www.izfa.pl/download/file/id/652/n/wizerunek-funduszy-inwestycyjnych-wyniki-badan [access: 02.09.2017].

Aydogdu M., Wellman J.W., The effects of advertising on mutual fund flows: results from a new database, “Financial Management” 2011, No. 3.

Barber B.M., Huang X., Odean T., Which factors matter to investors? Evidence from mutual fund flows, “Review of Financial Studies” 2016, No. 10.

Barber B.M., Odean T, Zheng L., Out of Sight, Out of Mind: The Effects of Expenses on Mutual Fund Flows, “The Journal of Business” 2005, No. 6.

Barberis N., Schleifer A., Style investing, “Journal of Financial Economics” 2003, No. 2.

Chen J., Hong H.G., Huang M., Kubik J., Does Fund Size Erode Mutual Fund Performance? The Role of Liquidity and Organization, “American Economic Review” 2004, No. 5.

Cooper M.J., Gulen H., Rau P.R., Changing names with style: Mutual fund name changes and their effects on fund flows, “Journal of Finance” 2005, No. 60.

Cuthbertson K., Nitzsche D., O’Sullivan N., A review of behavioural and management effects in mutual fund performance, “International Review of Financial Analysis” 2016, No. 44.

Elton E.J., Gruber M.J., Blake C.R., Does Mutual Fund Size Matter? The Relationship Between Size and Performance, “Review of Asset Pricing Studies” 2012, No. 1.

Espenlaub S., Haq I., Khurshed A., It’s all in the name. Mutual Fund Name Changes after SEC Rule 35d-1, “Journal of Banking and Finance” 2017, Vol. 84, DOI: https://doi.org/10.1016/j.jbankfin.2017.07.008.

Jain P.C., Wu J.S., Truth in Mutual Fund Advertising: Evidence on Future Performance and Fund Flows, “Journal of Finance” 2000, No. 2.

Massa M., How do family strategies affect fund performance? When performance-maximization is not the only game in town, “Journal of Financial Economics” 2003, No. 2.

Sirri E.R., Tufano P., Costly Search and Mutual Fund Flows, “The Journal of Finance” 1998, No. 5.

www.knf.gov.pl [access: 02.09.2017].




DOI: http://dx.doi.org/10.17951/h.2018.52.2.161-170
Date of publication: 2018-07-27 07:47:48
Date of submission: 2018-01-20 17:44:51


Statistics


Total abstract view - 983
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Artur Arkadiusz Trzebiński

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.