Asset Managers in Emerging Market Economies

16 Pages Posted: 1 Oct 2014

See all articles by Ken Miyajima

Ken Miyajima

Bank for International Settlements (BIS) - Monetary and Economic Department

Ilhyock Shim

Bank for International Settlements (BIS)

Date Written: September 2014

Abstract

The turbulence in emerging market economies (EMEs) in mid-2013 has reminded policymakers and investors of the importance of actions by large asset managers for relatively small and illiquid EME asset markets. The presence of asset managers in EMEs has grown considerably, and the concentrated use of benchmarks and the directional co-movement of investor flows can generate correlated investment patterns that may create one-sided markets and exacerbate price fluctuations. Indeed, we provide evidence showing that, during the past two years, investor flows to asset managers and EME asset prices have reinforced each other's movements.

JEL Classification: G11, G15, G23

Suggested Citation

Miyajima, Ken and Shim, Ilhyock, Asset Managers in Emerging Market Economies (September 2014). BIS Quarterly Review September 2014, Available at SSRN: https://ssrn.com/abstract=2498606

Ken Miyajima (Contact Author)

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Ilhyock Shim

Bank for International Settlements (BIS) ( email )

78F, Two International Finance Centre
8 Finance Street, Central
Hong Kong, n/a n/a
Hong Kong

HOME PAGE: http://www.bis.org/author/ilhyock_shim.htm

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