The Bank Bias: Segmentation of French Fund Families
AbstractIn this paper, we investigate the performance-growth relation of French mutual funds. Using panel techniques, we find that capital inflows to French past top performing funds are not as strong as expected. This result suggests that there exist barriers to investment, that may come from the fact that funds are mostly managed by banks and insurance companies and that there are high switching costs for an investor to transfer cash from one financial institution to another. We call this phenomenon ''bank bias'', because investors do not diversify enough across banks' funds. Furthermore, we provide a test of our conjecture and cannot reject it.
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Bibliographic InfoPaper provided by Banque de France in its series Working papers with number 107.
Length: 33 pages
Date of creation: 2004
Date of revision:
Mutual funds ; Performance ; SICAV ; FCP;
Find related papers by JEL classification:
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
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