{"title":"实物赎回与共同基金流动性管理","authors":"V. Agarwal, Honglin Ren, Ke Shen, Haibei Zhao","doi":"10.2139/ssrn.3527846","DOIUrl":null,"url":null,"abstract":"Open-end mutual funds can use redemption in kind to satisfy investor redemptions by delivering securities instead of cash. We find that funds that reserve their rights to redeem in kind experience less redemption after poor performance. Evidence from actual in-kind transactions reveals several unique mechanisms for redemption in kind to mitigate fund runs, including the delivery of more illiquid stocks and stocks with greater tax overhang. Funds also suffer less from the adverse impact of outflows on their performance. On the other hand, redeeming investors bear significant liquidation costs when they are forced to sell securities on their own.","PeriodicalId":20999,"journal":{"name":"Regulation of Financial Institutions eJournal","volume":"76 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2020-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"7","resultStr":"{\"title\":\"Redemption in Kind and Mutual Fund Liquidity Management\",\"authors\":\"V. Agarwal, Honglin Ren, Ke Shen, Haibei Zhao\",\"doi\":\"10.2139/ssrn.3527846\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"Open-end mutual funds can use redemption in kind to satisfy investor redemptions by delivering securities instead of cash. We find that funds that reserve their rights to redeem in kind experience less redemption after poor performance. Evidence from actual in-kind transactions reveals several unique mechanisms for redemption in kind to mitigate fund runs, including the delivery of more illiquid stocks and stocks with greater tax overhang. Funds also suffer less from the adverse impact of outflows on their performance. On the other hand, redeeming investors bear significant liquidation costs when they are forced to sell securities on their own.\",\"PeriodicalId\":20999,\"journal\":{\"name\":\"Regulation of Financial Institutions eJournal\",\"volume\":\"76 1\",\"pages\":\"\"},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2020-09-21\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"7\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Regulation of Financial Institutions eJournal\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.2139/ssrn.3527846\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"\",\"JCRName\":\"\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Regulation of Financial Institutions eJournal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3527846","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
Redemption in Kind and Mutual Fund Liquidity Management
Open-end mutual funds can use redemption in kind to satisfy investor redemptions by delivering securities instead of cash. We find that funds that reserve their rights to redeem in kind experience less redemption after poor performance. Evidence from actual in-kind transactions reveals several unique mechanisms for redemption in kind to mitigate fund runs, including the delivery of more illiquid stocks and stocks with greater tax overhang. Funds also suffer less from the adverse impact of outflows on their performance. On the other hand, redeeming investors bear significant liquidation costs when they are forced to sell securities on their own.