TY  - UNPD
A1  - Hillert, Alexander
A1  - Niessen-Ruenzi, Alexandra
A1  - Ruenzi, Stefan
T1  - Mutual fund shareholder letters: flows, performance, and managerial behavior
N2  - Fund companies regularly send shareholder letters to their investors. We use textual analysis to investigate whether these letters’ writing style influences fund flows and whether it predicts performance and investment styles. Fund investors react to the tone and content of shareholder letters: A less negative tone leads to higher net flows. Thus, fund companies can use shareholder letters as a tactical instrument to influence flows. However, at the same time, a dishonest communication that is not consistent with the fund’s actual performance decreases flows. A positive writing style predicts higher idiosyncratic risk as well as more style bets, while there is no consistent predictive power for future performance.
T3  - SAFE working paper - 380 
KW  - Fund Flows
KW  - Textual Analysis
KW  - Shareholder Letters
KW  - Investment Styles
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/70133
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-701330
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2524610
N1  - We are grateful for financial support from the Julius Paul Stiegler Memorial Foundation.
PB  - SAFE
CY  - Frankfurt am Main
ER  -