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

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Listed:
  • Luis Brandao-Marques
  • R. G Gelos
  • Hibiki Ichiue
  • Hiroko Oura

Abstract

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.

Suggested Citation

  • Luis Brandao-Marques & R. G Gelos & Hibiki Ichiue & Hiroko Oura, 2015. "Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets," IMF Working Papers 15/277, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:15/277
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hoggarth, Glen & Jung, Carsten & Reinhardt, Dennis, 2016. "Capital inflows — the good, the bad and the bubbly," Bank of England Financial Stability Papers 40, Bank of England.
    2. Nathan Converse & Eduardo Levy-Yeyati & Tomas Williams, 2018. "How ETFs Amplify the Global Financial Cycle in Emerging Markets," DOUMENTOS DE TRABAJO LACEA 016200, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA.
    3. Tomas Williams & Nathan Converse & Eduardo Levy-Yeyati, "undated". "How ETFs Amplify the Global Financial Cycle in Emerging Markets," Working Papers 2018-1, The George Washington University, Institute for International Economic Policy.

    More about this item

    Keywords

    International financial markets; Capital flows; emerging markets; mutual funds; flows; portfolio; bond; equity; portfolio flows; All Countries;

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