01871cas a2200277 a 4500 AALejournalIMF015975 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513518336 1018-5941 BD-DhAAL BD-DhAAL Jin, Dunhong. Swing Pricing and Fragility in Open-end Mutual Funds / Dunhong Jin, Marcin Kacperczyk, Bige Kahraman, Felix Suntheim. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds' net asset values to pass on funds' trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect. Mode of access: Internet Kacperczyk, Marcin. Kahraman, Bige. Suntheim, Felix. IMF Working Papers; Working Paper ; No. 2019/227 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/227/001.2019.issue-227-en.xml IMF e-Library