The economics of mutual fund markets: competition versus regulation
Saved in:
| Format: | Book |
|---|---|
| Language: | English |
| Published: |
Boston u.a.
Kluwer
1990
|
| Series: | Rochester studies in economics and policy issues
7 |
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XI, 236 S. |
| ISBN: | 0792390431 |
Staff View
MARC
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TABLE OF CONTENTS
List of Figures ix
List of Tables x
Preface 1
Introduction 3
ONE: HISTORY OF THE DEVELOPMENT OF
THE MUTUAL FUND INDUSTRY
Introduction 7
Investment Companies 12
Organizational Structure 12
Mutual Funds 16
Money Market Mutual Funds 20
Fund Complexes 22
Pre 1940 27
1940 to 1970 28
1970 to the Present 31
Overview 31
Money Market Mutual Funds 32
Other Mutual Funds 40
Conclusions 46
TWO: REGULATION OF THE MUTUAL FUND
INDUSTRY
Background 47
Investment Company Act of 1940 48
Purpose of the Act 48
Mechanisms Established to Deal with the Abuses . . 52
The 1970 Amendments 54
Concerns Raised by the 1960s' Reports 55
New Regulations in the 1970 Amendments 59
Recent Regulatory Initiatives 60
Is Regulation Necessary in the Current Environment? . . 64
!
I
j
THREE: LITIGATION UNDER THE 1940 ACT AND
THE 1970 AMENDMENTS
Pre 1970 Amendments 67
Post 1970 Amendments 71
Summary of Economic Analysis Utilized in Litigation . . 86
Appendix 89
FOUR: ANALYSIS OF THE ADVISER SHAREHOLDER
RELATIONSHIP IN THE MUTUAL FUND INDUSTRY
Introduction 103
Examination of Organizational Structure 104
Shareholders and Advisers as Contracting Agents . . . 104
Competition as a Restraining Force 107
FIVE: A STUDY OF CURRENT MARKET
CONDITIONS IN THE MUTUAL FUND INDUSTRY
Introduction Ill
The Analytical Framework: On Industry Structure,
Performance, and Conduct Ill
Perfect Competition and Perfect Contestability as
Theoretical Structural Ideals 113
Industry Concentration 115
Conditions of Entry 122
Investor Mobility 126
Outlays on Inputs Used to Make Final Products Sold
in Competitive Markets 129
Industry Conduct under Perfect Competition and
Contestability 135
Conclusions 136
SIX: THE DEMAND FOR MONEY MARKET
MUTUAL FUNDS
Demand Elasticity: An Introduction 141
Elasticity of Market Demand for Money Market
Mutual Funds 142
Fund Elasticity of Demand 145
Theoretical Specification of the Model 146
A Workable Econometric Model 148
Econometric Results 151
Fund Elasticity With Respect to Total Fees 160
SEVEN: A COST STUDY OF MUTUAL FUND
COMPLEXES
Introduction 165
Cost Functions 167
Empirical Analysis 172
Output Measures and Choice of Hedonic Variables . 173
Model Specifications 176
Description of Data and Complex Selection Criteria 178
Econometric Results 180
Economies of Scale and Scope 185
Conclusions 192
Appendix A 196
Appendix B 202
Appendix C 210
[
EIGHT: TOWARD RATIONAL POLICY ON
REGULATION OF MUTUAL FUNDS
Introduction 213
A Review of Fee Setting in the Mutual Fund Industry . 214
The Exploitation Hypothesis 214
Economic Incentives and Industry Behavior 215
The Evidence on Competition for Advisory Services . 216
Proposals for a Modified Regulatory Regime 217
Eliminating the Special Pricing and Earnings
Evaluation Criteria in the 1940 Investment
Company Act 219
Eliminating the Imposition of a Corporate like
Structure upon Mutual Funds 219
Disclosure Requirements 220
Facilitating Investor Ability to Move from One Fund
to Another 221
Conclusions 222
BIBLIOGRAPHY 225
INDEX 237
LIST OF FIGURES
1.1 Total Assets Invested in Mutual Funds, 1929 1987 . 11
1.2 Total Number of Mutual Funds, 1929 1987 13
1.3 Total Number of Accounts, 1929 1987 13
1.4 Percentage of Mutual Fund Assets Held by
Institutions, 1954 1987 25
1.5 Change in Money Market Assets versus Yield
Differentials of Other Instruments, 1978 1987 . 36
5.1 Total Number of Mutual Fund Advisers, 1982 1987 124
5.2 Closed End Investment Company Assets as a
Percentage of Total Assets, 1929 1987 127
5.3 Sales Exchanges as a Percentage of Mutual Fund
Assets, 1979 1987 129
6.1 Net Yield Index by Asset Size Ranking, 1980 1987 . 147
6.2 Estimate of Fund Net Yield Elasticity, 1980 1986 . . 158
6.3 Effect of Yield Index on Market Share
(Based on Market Share Regression) 159
LIST OF TABLES
1.1 Characteristics of the Investment Company
Industry 9
1.2 Number of Mutual Funds with Separate Adviser
and Administrator, 1982 1987 18
1.3 Percentage of Mutual Fund Industry Assets
Attributed to Institutional Investors,
1954 1987 23
1.4 The Growth of Fund Complexes, 1982 1987 26
1.5 Total Investment Company Assets by Company
Type, 1929 1987 28
1.6 Mutual Fund Industry Totals, 1940 1970 29
1.7 Mutual Fund Sales, Redemptions, and Assets,
1941 1970 30
1.8 Mutual Fund Industry Totals, 1970 1987 33
1.9 Average Annual Return by Investment
Instrument, 1975 1987 35
1.10 Annual Change in Total Assets Invested,
1977 1987 38
1.11 Share of All Mutual Fund Assets: Money Market
Versus Other Mutual Funds, 1974 1987 39
1.12 Percentage of Mutual Funds by Investment
Objective, 1980 1987 41
1.13 Mutual Fund Total Assets by Investment
Objective, 1980 1987 43
1.14 Mutual Fund Assets: Load Versus No Load,
1970 1983 45
3.1 Mutual Funds Involved in Excessive Fee
Litigation Prior to the 1970 Amendments 68
3.2 Mutual Funds Involved in Excessive Fee
Litigation After the 1970 Amendments 72
3.3 Money Market Mutual Funds Involved in
Excessive Fee Litigation After the 1970
Amendments 84
5.1 Thirty Largest Complexes' Percentage of Total
Assets, 1982 1987 118
5.2 Herfindahl Hirschman Index for Mutual Fund
Complexes, 1982 1987 122
5.3 Net New Mutual Funds, 1976 1987 123
6.1 Summary Statistics for Data Used in Market
Share Regression, All Retail Taxable
Nongovernment Funds, 1980 1986 153
6.2 Market Share Regression Estimates 154
6.3 Estimate of Fund Net Yield Elasticity 157
6.4 Effects of Yield on Market Share 160
6.5 Derived Demand Elasticity with Respect to
Total Fees 162
7.1 Output and Hedonic Variables in Regression
Models 175
7.2 Complexes Offering Both Outputs,
179 Observations, Five Percent Filter 180
7.3 Estimation of Cost Function 181
7.4 Estimation of Cost Function 182
7.5 Estimation of Cost Function 183
7.6 Estimation of Cost Function 184
7.7 Overall Economics of Scale, Five Percent Filter . . 187
7.8 Rank Correlation of Overall Economies of Scale
and Scope with Output Measures, Five Percent
Filter 189
7.9 Economies of Scope, Five Percent Filter 191
A.1 Selection Criteria, Five Percent Filter 198
A.2 Selection Criteria, 40 Percent Filter 199
A.3 Fund Characteristics 200
A.4 Complex Characteristics 201
B.I Complexes Offering Both Outputs,
301 Observations, 40 Percent Filter 203
B.2 Estimation of Cost Function 204
B.3 Estimation of Cost Function 205
B.4 Estimation of Cost Function 206
B.5 Estimation of Cost Function 207
B.6 Overall Economies of Scale, 40 Percent Filter . 208
B.7 Overall Economies of Scope, 40 Percent Filter . 209 |
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| spelling | The economics of mutual fund markets competition versus regulation William J. Baumol ... Boston u.a. Kluwer 1990 XI, 236 S. txt rdacontent n rdamedia nc rdacarrier Rochester studies in economics and policy issues 7 Fonds communs de placement Sociétés d'investissement Sociétés d'investissement ram Mutual funds Investmentfonds (DE-588)4114047-3 gnd rswk-swf Regulierung (DE-588)4201190-5 gnd rswk-swf USA (DE-588)4078704-7 gnd rswk-swf USA (DE-588)4078704-7 g Investmentfonds (DE-588)4114047-3 s Regulierung (DE-588)4201190-5 s DE-604 Baumol, William J. 1922-2017 Sonstige (DE-588)119076209 oth Rochester studies in economics and policy issues 7 (DE-604)BV000905056 7 HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=002754872&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | The economics of mutual fund markets competition versus regulation Rochester studies in economics and policy issues Fonds communs de placement Sociétés d'investissement Sociétés d'investissement ram Mutual funds Investmentfonds (DE-588)4114047-3 gnd Regulierung (DE-588)4201190-5 gnd |
| subject_GND | (DE-588)4114047-3 (DE-588)4201190-5 (DE-588)4078704-7 |
| title | The economics of mutual fund markets competition versus regulation |
| title_auth | The economics of mutual fund markets competition versus regulation |
| title_exact_search | The economics of mutual fund markets competition versus regulation |
| title_full | The economics of mutual fund markets competition versus regulation William J. Baumol ... |
| title_fullStr | The economics of mutual fund markets competition versus regulation William J. Baumol ... |
| title_full_unstemmed | The economics of mutual fund markets competition versus regulation William J. Baumol ... |
| title_short | The economics of mutual fund markets |
| title_sort | the economics of mutual fund markets competition versus regulation |
| title_sub | competition versus regulation |
| topic | Fonds communs de placement Sociétés d'investissement Sociétés d'investissement ram Mutual funds Investmentfonds (DE-588)4114047-3 gnd Regulierung (DE-588)4201190-5 gnd |
| topic_facet | Fonds communs de placement Sociétés d'investissement Mutual funds Investmentfonds Regulierung USA |
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