Competition and Structure of the Mutual Fund Industry in Spain: The Role of Credit Institutions

44 Pages Posted: 7 Jun 2019

See all articles by María Isabel Cambón

María Isabel Cambón

Comisión Nacional de Mercado de Valores

Ramiro Losada

Comision Nacional del Mercado de Valores

Multiple version iconThere are 2 versions of this paper

Date Written: 2012

Abstract

In industries where consumers prefer to make all their purchases from a single company (for example, a supermarket), companies tend to offer a greater variety of products. With that strategy, they succeed in making their market share in the industry grow and gaining market power. This behaviour is also typical of the financial industry, where consumers usually prefer to concentrate all their financial operations in a single entity. In Spain, the big growth of mutual funds since 1995 and the model of universal banking suggest the existence of these cross-effects on demand (spillovers). In this paper, we provide empirical evidence of the presence of these effects in the Spanish mutual fund market. Moreover, these effects are strong-er than in the US market. The intensity of the effects appears to be greater in the retail mutual fund segment than in the wholesale segment. This result would be consistent with the relative increase in the number of funds offered by fund managers, the higher fees charged, and the stronger degree of concentration of fund families found in the retail segment.

Suggested Citation

Cambón, María Isabel and Losada, Ramiro, Competition and Structure of the Mutual Fund Industry in Spain: The Role of Credit Institutions (2012). CNMV Working Paper No. 54, 2012. Available at SSRN: https://ssrn.com/abstract=3400662 or http://dx.doi.org/10.2139/ssrn.3400662

María Isabel Cambón (Contact Author)

Comisión Nacional de Mercado de Valores ( email )

Edison 4
Madrid, 28006
Spain

Ramiro Losada

Comision Nacional del Mercado de Valores ( email )

c/edison 4
Madrid, Madrid 28006
Spain

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
18
Abstract Views
240
PlumX Metrics