Abstract

http://ssrn.com/abstract=1997126
 


 



How Does the Domiciliation Decision Affect Mutual Fund Fees?


Gunnar Lang


ZEW

Matthias Köhler


Deutsche Bundesbank

December 1, 2011

ZEW - Centre for European Economic Research Discussion Paper No. 11-085

Abstract:     
In this paper, we analyze whether the domiciliation decision of mutual funds has an impact on fund fees. To explain the fee price-setting of mutual funds, we consider characteristics specific to funds, fund companies, and countries. We find that fees vary considerably across fund types and countries. Positive impacts of financial market integration can be confirmed, though funds set up under the UCITS directive are more expensive. If funds are sold in multiple countries it drives up fees; however, these higher costs for the investor are outweighed by economies of scale that can be generated if the domiciliation is in a specialized financial center, such as Luxembourg. Larger funds and funds that are set up by specialized or larger fund companies have significantly lower fees.

Number of Pages in PDF File: 55

Keywords: Mutual Funds, Financial Regulation, Market Integration

JEL Classification: F36, G15, G18, G20, L11

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Date posted: February 2, 2012  

Suggested Citation

Lang, Gunnar and Köhler, Matthias, How Does the Domiciliation Decision Affect Mutual Fund Fees? (December 1, 2011). ZEW - Centre for European Economic Research Discussion Paper No. 11-085. Available at SSRN: http://ssrn.com/abstract=1997126 or http://dx.doi.org/10.2139/ssrn.1997126

Contact Information

Gunnar Lang (Contact Author)
ZEW ( email )
P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany
Matthias Köhler
Deutsche Bundesbank ( email )
Wilhelm-Epstein-Str. 14
D-60431 Frankfurt/Main
Germany
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