---
title: Side-by-Side Management and Bond Fund Performance
url: https://www.ml-quant.com/papers/ssrn/4506409/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4506409
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4506409
featured: 2023-07-12
citations: unknown
topic: Macro-Finance & Rates
---


# Side-by-Side Management and Bond Fund Performance

The research reveals that bond mutual funds managed by managers with performance-based fees receive fewer fund flows and inflate their asset values, indicating potential conflicts of interest in side-by-side management.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4506409
- Identifier: SSRN 4506409
- Released: 2023-07-03
- First featured: Quant Letter No. 7 (2023-07-12): https://www.ml-quant.com/issues/2023-07-12/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates

## Related

- [Bond Fund Herding](https://www.ml-quant.com/papers/ssrn/4517569/): The study reveals that collective behavior of mutual funds, known as fund herding, can sway a company's decision to issue new bonds, particularly in uncertain times.
- [Corporate Bond Funds and Underpriced New Issues](https://www.ml-quant.com/papers/ssrn/4582729/): From 2002-2019, active investment-grade corporate bond mutual funds saw significant positive returns, largely due to underpriced new bond offerings to funds with strong underwriting relationships.
- [Local-Currency Bond Markets in Emerging Economies and Foreign Investors](https://www.ml-quant.com/papers/ssrn/4586788/): When global risk aversion rises, foreign mutual funds increase net sales of Indonesian Rupiah bonds, causing the IDR to depreciate against the US dollar and increasing bond market volatility.
- [Monetary Policy Uncertainty](https://www.ml-quant.com/papers/ssrn/4908063/): The study investigates the effect of monetary policy uncertainty on mutual fund flows and fund managers' ability to generate positive alpha risk-adjusted returns during Federal Open Market Committee meetings.
- [Macroeconomic Predictability](https://www.ml-quant.com/papers/ssrn/4988114/): The research investigates if macroeconomic factors and policy interest rates can benefit a risk-averse investor diversifying her wealth in different hedge fund strategies.
- [Monetary Transmission in Equity Markets](https://www.ml-quant.com/papers/ssrn/5078670/): The study suggests that contractionary monetary policy can cause equity outflows from mutual funds, which are then absorbed by banks charging a premium for market making.