We study a set of German open-end mutual fund
s for a time period during which this industry
emerged from its infancy. In those years, the distribution channel for mutual funds was
dominated by the brick-and-mortar retail networks of the large universal banks. Using
monthly observations from 12/1986 through 12/1998, we investigate if cross-sectional return
differences across mutual funds affect their ma
rket shares. Although such a causal relation has
been established in highly competitive markets, such as the United States, the rigid distribution system in place in Germany at the time may have caused retail performance and
investment performance to uncouple. In fact, although we observe stark differences in
investment performance across mutual funds (and over time), we find no evidence that cross-sectional performance differences affect the market shares of these funds.
Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.
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