Seminar (Dept. of Finance)

Theme：Leaving the (fund) gate ajar: investor protection or marketing ploy?

Speaker：Adrian Lee, Associate Professor of Finance, Deakin University

Time：2020-11-13 10:00

Address：Zoom Meeting

Language：English

Zoom Meeting

https://zoom.com.cn/j/64758825461?pwd=UXF4VXZnQnZkK1FLZE4zU3M4bHpiZz09

ID：647 5882 5461

password：413923

ABSTRACT:

Using a unique dataset of fund inflow gates in China, we study for the first time discretionary inflow restrictions in mutual funds. We show that funds imposing a purchase limit on investors substantially increase future fund flows and expand their retail investor base, though they do not earn a higher future return. In addition, inflow-restricted funds implement a more aggressive investment strategy and pay a higher fund sales commission when the gate is in place. Overall, contrary to managers’ claim, our findings suggest that fund inflow gates appear more of a scarcity marketing than investor protection.

SHORT BIOGRAPHY:

Adrian Lee is an Associate Professor of Finance at Deakin University. He received his PhD in Finance from the University of New South Wales and had taught at the University of Technology Sydney. His research interests include real estate and behavioural finance. His works are published in leading journals such as Journal of Financial and Quantitative Analysis, Management Science and Real Estate Economics.