International equity mutual funds that hire managers from a country linked to the fund's geographic mandate exhibit a strong bias to invest in stocks of that country. These funds with “home-biased managers” attract disproportionally more flows and reveal greater flow-performance sensitivity....

We establish that global portfolios are driven by an often neglected aspect: the currency of denomination of assets. Using a dataset of $27 trillion in security-level investment positions, we demonstrate that investor holdings are biased toward their own currencies to such an extent that each...

We compare the performance of local versus foreign institutional investors using a comprehensive data set of equity holdings in 32 countries during the 2000-2010 period. We find that foreign institutions perform as well as local institutions on average, but only domestic institutions show a...

Do market comovements affect international portfolio investment? We examine whether there are systematic changes made to the holdings of equities listed on U.S. stock exchanges by foreign fund managers when their home markets become more correlated with the U.S. We concentrate on international...

This paper analyzes the financial wealth allocation and the characteristics of the financial system in Turkey during the 1987-2011 period. The main finding of the paper is that the lack of attractive investment opportunities in capital markets, limited development of non-bank financial...

The benefits of cross-listing for a foreign quot;issuerquot; are extensively documented in the literature, however it is not clear what motivates quot;investorsquot; to hold American Depositary Receipts (ADRs) rather than the underlying stock of these issuers. We analyze the investment...

This paper studies the predictability of European equity mutual fund performance during a period when European stock markets were partially segmented. Speci fically, we use macroeconomic variables to predict the performance of European equity funds, including Pan-European, country, and sector...

Cryptoassets, particularly Bitcoin, have attracted the attention of institutional investors during the latest price rallies of 2020 and 2021. The need for cryptoassets apart from Bitcoin in their portfolios is mostly unexplored in the current literature, and the general perception of...

We exploit individual security holdings data for global mutual funds to distinguish between two reasons why a fund's holdings of emerging market economy (EME) bonds might change: (i) the amount invested in the fund changes and (ii) the fund manager changes portfolio allocations. We find that...