Journal of Financial Services Marketing

, Volume 12, Issue 1, pp 88–96

The effect of distribution channels on mutual fund flows

Practice Paper


The Morningstar fund rating has been reported to affect mutual fund flows in the US markets. This paper finds that flow patterns in Finnish bank-managed funds are significantly different from the patterns in the US. Specifically, non-bank funds attract flows in a manner similar to the US markets, that is Morningstar ratings affect fund flows. In contrast, Finnish bank-managed funds do not exhibit the same relationship between star ratings and flows. The results suggest that in Finland, five-star Morningstar ratings are not regarded as highly as in the US, where good performance attracts significantly higher flows. More significantly, our findings demonstrate the importance of banks' distribution channels in the Finnish financial market.


mutual fund flow distribution 


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Copyright information

© Palgrave Macmillan Ltd 2007

Authors and Affiliations

  1. 1.Helsinki School of Economics, and Arvo Value Asset Management Ltd.HelsinkiFinland

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