The Benefits of Creating an Integrated EU Market for Investment Funds

Arbeitspapier

The fast growing EU market for investment funds is still characterised by a continuing relevance of national borders. This papers assesses this market?s degree of integration, the potential benefits from more integration and the obstacles to cross-border sales of funds. The analysis shows that markets of small member countries are particularly isolated since for suppliers of funds the market potential is too small to compensate for the fixed costs of market entry. But also in the big markets foreign funds lack market success. A better integrated European market for investment funds would provide three kinds of benefits: It increases choice of products, it allows to realise economies of scale and it intensifies competition for the benefit of private investors. It is argued that the present characteristics of fund distribution channels are mainly responsible for fragmentation besides regulatory and tax issues.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 02-27

Classification and Topics

• Classification: Wirtschaft ; Corporate Finance and Governance: Government Policy and Regulation ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Subject: UCITS ; investment fund ; European integration ; Investmentfonds ; Internationaler Finanzmarkt ; Marktintegration ; Skalenertrag ; Wettbewerb ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heinemann, Friedrich
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/24779
• Last update: 10.03.2025, 11:44 AM CET