Our database contains relatively few European sector funds (shown in section III of Table 1), particularly prior to 2003. It is worth noting that the division between sector funds and country funds is less clear-cut than may rst seem the case. Indeed, some of the smaller European stock markets are dominated by a few rms and one or two sectors (., Nokia in the Finnish stock market). Thus, investors likely used country funds to invest in certain industries during earlier periods of our time-series. Nevertheless, it appears that asset management in Europe has mostly been aligned with countries, rather than sectors, at least until very recently
