 Capital flows: The role of investment fund portfolio managersGeorgia Bush and Carlos Cañón Journal of International Economics, 2025, vol. 154, issue C Abstract: This paper analyzes drivers of capital flows channeled by open-ended mutual funds, disentangling flows resulting from investor behavior and those resulting from fund manager reallocation. Using security-level data from Morningstar, we construct a novel dataset of global bond funds for the period 2011 to 2017, whose holdings include securities from 18 emerging market economies. By disaggregating flows and leveraging country-fund variation, we are able to identify differentiated effects of push and pull factors on investor flows versus manager reallocation. We exploit the fund security holdings data further to implement a shift-share estimation approach. In addition, we are able to provide evidence of what institutional factors are influencing managers (liquidity, leverage, benchmarks). Finally, using textual analysis of funds’ prospectuses, we construct a measure of manager discretion, execute a difference-in-difference specification for the Taper Tantrum, and find funds with higher manager discretion were less prone to disinvesting from EMEs. Keywords: Capital flows; Emerging markets; Non-bank financial intermediaries; Asset allocation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:154:y:2025:i:c:s0022199625000182 DOI: 10.1016/j.jinteco.2025.104062 Access Statistics for this article Journal of International Economics is currently edited by Martin Uribe and Costas Arkolakis More articles in Journal of International Economics from Elsevier |
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