Notice of RetractionReputation stretching in Chinese mutual fund families

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Reputation stretching is a marketing strategy for promoting new fund sales. We examine the role of this strategy in Chinese mutual fund families and find the similar result as Chen and Lai (2010). We find Reputation stretching increases net fund flows to fund families, and past performance of prestigious managers can persist in new funds. Meanwhile, performance of new funds run by managers with track records is better than those run by managers without track records. In all, reputation stretching strategy benefits both fund families and investors.