This paper examines the performance of mutual funds in Israel between 2003 and 2008. Almost all of the funds active during all or part of this period were examined. (The following funds were not included in the sample: money market funds, tracking funds, Israeli funds of funds, foreign funds of...

A low-interest rate environment induces higher demand for income-generating assets, such as high-dividend stocks and high-coupon bonds. In this paper, we explore the impact of this “reaching-for-income” phenomenon on fund flows of corporate bond mutual funds. We find that high...