Foreign and local investment funds: development and concentration in Lithuania

Abstract

This paper examines investment fund industry development and concentration in Lithuania in comparison with other fund industries contries worldwide. The dynamics of NAV of investment funds in Lithunia signalize about negative trends in the market and existing correlation with several external factors such as GDP, assets of term deposits in banks in Lithuania, unemployment or turnover in local stock exchange. The indicators show that the investment funds industry is highly concentrated in Lithuania. Two investment funds groups are identified and analyzed in the paper: locally manged funds and foreign investment funds, publicly distributed in Lithuania. Foreign investment funds have stronger positions in the market regarding number of assets, funds, investors and higher concentration.