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Costs associated with mutual funds in Spain

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  • Isabel Toledo

    (Department of Applied Economics, Faculty of Economics and Business Science, Autónoma University of Madrid, Spain)

  • Roc�o Marco

    (Department of Applied Economics, Faculty of Economics and Business Science, Autónoma University of Madrid, Spain)

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    Abstract

    This study examines the mutual fund market in Spain from the point of view of management and custodial costs. For this purpose it estimates functions explaining these fees using ordinary least squares and panel data. The results confirm that the most relevant factors in determining the management fee are the risk incurred by the managed portfolio, the level of its cash holding, and the number of shareholders in relation to the size of the fund. In addition, it highlights two aspects of the Spanish market with respect to the results obtained by similar studies in the North American market and in some European countries (Finland, Italy): first, the lack of a learning curve reducing operational costs, and, second, the lack of economies of scale in the management costs. Copyright © 2009 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/ijfe.394
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal International Journal of Finance & Economics.

    Volume (Year): 15 (2010)
    Issue (Month): 2 ()
    Pages: 165-179

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    Handle: RePEc:ijf:ijfiec:v:15:y:2010:i:2:p:165-179

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    1. Berkowitz, Michael K. & Kotowitz, Yehuda, 2002. "Managerial quality and the structure of management expenses in the US mutual fund industry," International Review of Economics & Finance, Elsevier, vol. 11(3), pages 315-330.
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