ABSTRACT
The financialization process has been facilitated by the internationalization of the asset management sector. This sector is organized around companies administratively and financially promoting and/or managing the portfolios of institutional investors. This chapter focuses on the expansion of the mutual funds. The main characteristic of these funds is their liquidity in that their shares can be bought and redeemed at any time. The activity of promoting and managing mutual funds is regulated in the United States by the Investment Company Act (ICA) of 1940. It was enacted after the abuses encountered in the closed-end fund sector that contributed to the 1929 crash. The internationalization of the mutual fund sector is characterized not only by the cross- border flows of money but also by the globalized market for savings' collection and the network operations around the financial centres.
