Periodic public information on investment funds and how it influences investors´ decisions

Ramiro Losada

CNMV Working Papers from CNMV- Spanish Securities Markets Commission - Research and Statistics Department

Abstract: This article analyzes how the information contained in the public information of investment funds affects the decisions of their participants. One of the goals of this type of regulatory text is to reduce the information asymmetry faced by investors, especially retail investors, when they want to invest in the securities markets. Specifically, two types of texts are analyzed: the first, devoted to describing the fund's investment policy; the second, known as an explanatory appendix devoted to describing the performance of the fund in the last quarter and the manager's predictions for the next quarter. From the results obtained, it can be derived that the information contained in these texts could influence the volume of both subscriptions and redemptions. However, the influence would be very limited. At the same time, there is a weak evidence that they could reduce the participations costs of investors when making their decisions to buy and sell funds.

Keywords: Investment funds; Periodic public information; Text analysis; Subscriptions; Redemptions; Participations costs. (search for similar items in EconPapers)
JEL-codes: G11 G23 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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