Foreign-promoted mutual funds in the continental European market

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Although the European market regulators have implemented a lot of measures in order to make the market more integrated, a recent report of European Fund and Asset Management Association (EFAMA) in 2015 underlines that domestic actors remain principal participants in country members. My research questions the integration of the European market by investigating the place of foreign promoters in continental European markets. Using 12315 equity funds from 14 continental European countries for the period from 2002 to 2014, I analyze the competitiveness and the market shares of foreign-promoted funds. The results show that foreign-promoted funds seem to be more performing than domestic-promoted funds. However, they do not attract more investors. Foreign promoters appear to have significantly smaller market shares. These results highlight the existence of barriers to foreign promoters in the European mutual fund market.

Author(s):

Linh Tran Dieu    
Lyon Catholic University-ESDES Business School of Ucly
France