Unconventional Monetary Policy and the Portfolio Choice of International Mutual Funds

By Gino Cendese (Fulcrum), Ilaf Elard

This paper analyses how unconventional monetary policy by the major central banks in developed markets affects the geographical portfolio choice of international mutual fund managers. We find that large-scale asset purchases have significant international spillover effects, in contrast to unconventional monetary policy announcement surprises. Specifically, we document that mutual fund managers rebalance their portfolios away from the developed country conducting large-scale asset purchases and towards other developed markets. We find little evidence for fund managers contributing to QE-induced capital flows to emerging markets.

To be published in: Journal of International Money and Finance

Your privacy
We use cookies to offer you better experience, analyse site traffic, and serve targeted advertisements. By continuing to use this website, you consent to the use of cookies in accordance with our Cookies and Privacy Policy.
Strictly Necessary – cookies that are necessary for the proper functioning of the website.