Cover IMF Working Papers
Buy Book in Print
The Role of Mature Market Mutual Funds in Emerging Markets: Myth or Mayhem?
Author:
Mr. Amadou N Sy
Search for other papers by Mr. Amadou N Sy in
Current site
Google Scholar Close
and
Ms. Li L Ong
Search for other papers by Ms. Li L Ong in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 133
Language:
English
Publication Date:
01 Jul 2004
DOI:
https://doi.org/10.5089/9781451855524.001
ISBN:
9781451855524
ISSN:
1018-5941
Pages:
24
Keywords:
WP; emerging market; market; equity fund
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (299 KB) Download Epub
The expansion of the global mutual funds industry has been characterized by growth in mature as well as emerging markets. This has clearly contributed to the development of local securities markets in emerging market economies, which in turn, has been key in attracting investment inflows from overseas funds. A major concern, however, is that large foreign investors could significantly disrupt the stability of local capital markets in the event of a market shock, with systemic implications for the real economy. Our estimates suggest that while local investors remain the more important group in terms of market share, the influence of foreign funds cannot be discounted. Asset allocation decisions by mature market funds- both dedicated and crossover-in aggregate, could affect emerging markets. In particular, European mutual funds appear to play a much bigger role in emerging markets than their U.S. counterparts.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund