A Comparison of Bank and Non-bank Funds in the French Market

Linh Tran Dieu

Journal of Financial Services Research, 2015, vol. 47, issue 3, 273-294

Abstract: The European mutual fund markets in general, and the French in particular, are dominated by banks that create and distribute 80% of their funds. Thus, investors can be “captive” and less sensitive to a fund’s performance, which can provide “market power” to the funds. This paper presents a comparison of the performance, fees and the investors’ performance sensitivity between bank and non-bank funds. Using a sample of French equity funds from January 1999 to April 2008, I observe that in the French market, bank funds underperform compared to non-bank funds. Further, clients of bank funds seem to be less sensitive to performance than investors of non-bank funds. However, there is no significant difference in fees between bank and non-bank funds. This paper is the first empirical study of this question for the French case, the biggest mutual fund market in Europe. Copyright Springer Science+Business Media New York 2015

Keywords: Mutual funds; Bank dominance; Fund performance; Fund expense; Performance sensitivity; G02; G11; G23 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10693-014-0195-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A comparison of bank and non-bank funds in the French market (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jfsres:v:47:y:2015:i:3:p:273-294

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10693

DOI: 10.1007/s10693-014-0195-5

Access Statistics for this article

Journal of Financial Services Research is currently edited by Haluk Unal

More articles in Journal of Financial Services Research from Springer, Western Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().