The Global Menu of Funds

52 Pages Posted: 9 Sep 2019 Last revised: 15 Jan 2020

See all articles by Sebastien Betermier

Sebastien Betermier

McGill University - Desautels Faculty of Management

David Schumacher

McGill University

Ali Shahrad

McGill University, Desautels Faculty of Management

Date Written: January 14, 2020

Abstract

We analyze the names of over 39,000 equity mutual funds sold in 77 countries between 1931 and 2016 in order to provide an aggregate perspective on the global evolution of mutual fund offerings. Despite the previously documented high degree of fund proliferation, we find that country-level fund menus have retained a low dimensionality and progressively converged to a common (“global”) menu. Menu convergence is driven by incumbent firms that seem to employ fund proliferation as a strategy to congest the product space and deter market entry.

Keywords: Fund Families, Fund Proliferation, Entry Deterrence, International Markets

JEL Classification: G15, G23, L1

Suggested Citation

Betermier, Sebastien and Schumacher, David and Shahrad, Ali, The Global Menu of Funds (January 14, 2020). Available at SSRN: https://ssrn.com/abstract=3444235 or http://dx.doi.org/10.2139/ssrn.3444235

Sebastien Betermier

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

David Schumacher (Contact Author)

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada
5143984778 (Phone)

HOME PAGE: http://www.davidschumacher.info

Ali Shahrad

McGill University, Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal
Canada

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