Seminar (Dept. of Finance)

Title: Mutual Fund Family Structure

Speaker: Yin Chengdong, Associate Professor, Renmin University of China

Time: 10:00-11:30, Mar.24, 2023(Friday)

Venue: Room 1008, Mingde Business Building

Language: English

ABSTRACT:

This study examines the impact of mutual fund family structure on mutual fund attributes. Using a novel dataset, we consider a two-layer fund family structure: whether an advisory firm manages one or multiple investment companies and whether each investment company has one (standalone) fund or multiple (series) funds. Family structure impacts fund expense ratios, risktaking, and annual returns, though impacts on returns disappear after risk-adjustment. Crossfund subsidization occurs both within and across investment companies to boost family profits. Star funds attract capital flows to non-star funds at the adviser level but not at the investment company level