Mutual fund management in the period of financial crisis

2017 ◽  
Vol 31 (2) ◽  
pp. 75-81
Author(s):  
О. А. Bank
Keyword(s):  
Financial Crisis ◽  
Mutual Fund ◽  
Economic Recession ◽  
Investment Strategy ◽  
Economic Conditions ◽  
Investment Strategies ◽  
Fixed Income ◽  
Fund Management ◽  
Fund Managers ◽  
Different Types

Mutual fund managers do not have full freedom in choosing investment strategies - they are limited both by the laws and by investment declarations of the funds. Investment strategy cannot be fully changed even in financial crisis but it only can be corrected. This fact could not be characterized as a disadvantage because different types of funds are efficient in different time even during the same economic recession. Mutual fund manager should rationally invest funds of their clients: it is better to keep the maximum possible part of the portfolio in cash and instruments with fixed income on the declining market and it is better to keep shares on the rising market. However the choice of bonds also as the choice of shares should pay respect for the features of these instruments during unfavorable economic conditions. Russian mutual fund management differs from fund management in other countries as in stable economic situation so in the circumstances of financial crisis.

scholarly journals Funds Manager and Mutual Funds Characteristics on Mutual Funds Performance: Empirical Evidence of Equity Mutual Funds in Indonesia

2020 ◽  
Vol 11 (2) ◽  
pp. 77
Author(s):  
Rina Rachmawati ◽  
Sugeng Wahyudi ◽  
Irene Rini Demi Pangestuti ◽  
Najmudin .
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Linear Models ◽  
Market Timing ◽  
Investment Strategy ◽  
Investment Fund ◽  
Fund Management ◽  
Fund Managers ◽  
Equity Funds ◽  
Positive Effect

This study examines the effect of investment fund managers' characteristics in the form of tenure, and mutual fund characteristics with proxy turnover portfolios, market timing and stock selectivity on the performance of stock mutual funds. The research sample is 27 stock mutual funds in Indonesia that were active from 2013 to 2017. On the analysis of the relationships between the characteristics of investment managers and mutual funds characteristics on the performance of stock mutual funds, a series of OLS regressions were run. The panel data regression was included based on using the Eviews. All of the above were aimed at achieving portfolio optimization and realizing the maximization of the interests for fund management companies and investors. The main findings are as follows. Tenure does not affect the performance of stock mutual funds during the years 2013 to 2017, but if divided into 2 quadrants of tenure, namely tenure over 19 years and tenure under 19 years of work, the result is that tenure over 19 years has a positive effect on the performance of stock mutual funds, but tenure brought 19 years has no effect on the performance of equity funds, whereas mutual funds characteristics, which are proxied by portfolio turnover, market timing and stock selectivity, have a significant positive effect on the performance of equity funds in Indonesia. The primary limitation in the scope is the sample, because stock mutual funds that publish consistently Financial statements between 2013 and 2017 are few in number. These findings have important implications for fund management companies as input material that the investment strategy of the investment management team affects the performance of equity funds compared to the characteristics of investment managers with proxies for years of service. This paper proposes a new perspective to evaluate the relationship between the fund manager and mutual funds characteristicsanddivide 2 groups of working years, and calculate them with non-linear models.

A Window into Thai Mutual Fund Managers’ Perception and Decision-Making Process

2017 ◽  
Vol 20 (03) ◽  
pp. 1750020 ◽  
Author(s):  
Anchada Charoenrook ◽  
Pantisa Pavabutr
Keyword(s):  
Interest Rates ◽  
Mutual Fund ◽  
Optimal Allocation ◽  
Fixed Income ◽  
Fund Managers ◽  
Country Level ◽  
Brand Reputation ◽  
Equity Mutual Funds ◽  
Fund Industry ◽  
Mutual Fund Industry

This paper identifies key features of the Thai mutual fund industry and analyzes determinants of those characteristics using unique survey data from 45% of fund managers registered in Thailand in 2012. The Thai mutual fund industry has some unique characteristics. It has experienced rapid growth and is dominated by bank-related funds that are mostly fixed income funds. Equity allocation of the fund industry and our sample funds are below optimal allocation benchmarks. However, country-level allocation is close to optimal, suggesting that Thai investors who invest in equity prefer to do so directly rather than through equity mutual funds. Fund managers perceive that too much regulation, investors’ preference for deposits and insufficient liquidity limit growth in their equity investments. Managers in our survey indicate that investors do not consider expense ratio and management fee important in determining mutual fund investments. This is contrary to general investment recommendations. Thai bank-related fund managers believe that investors place more importance to brand reputation than performance, whereas foreign fund managers view performance as more important. Thai bank fund managers are more concerned about local interest rates than Thai non-bank and foreign fund managers.

Sovereign Wealth Funds and Private Equity

2017 ◽  
Author(s):  
Mike Wright ◽  
Kevin Amess
Keyword(s):  
Private Equity ◽  
Investment Strategy ◽  
Fixed Income ◽  
Direct Control ◽  
Sovereign Wealth Funds ◽  
Different Types ◽  
Equity Funds ◽  
Institutional Capital ◽  
Expansion Stage ◽  
Public Equity

While the vast majority of SWFs invest in public equity and fixed income vehicles, about half invest in private equity (PE). PE includes several different types of funds investing in companies at different stages of development. Some 78% of SWFs investing in PE invest in buyouts stage funds; 72% in venture capital stage funds; 66% in growth stage funds, while 56% invest in funds investing in companies at the expansion stage. Only 41% have a strategy to invest in distressed company funds while 38% invest in the secondaries funds market. Some 14% of institutional capital raised by PE equity funds in 2015 came from sovereign wealth. This chapter argues that SWF investment in PE funds is more likely to be part of an investment strategy that seeks to maximize returns because investment in PE funds does not afford the SWF direct control over firms bought using PE funds.

scholarly journals SELECTIVITY AND MARKET TIMING ABILITY OF MUTUAL FUND HOUSES IN EMERGING COUNTRIES

2021 ◽  
Vol 16 (Number 1) ◽  
pp. 21-42
Author(s):  
Anas Ahmad Bani Atta ◽  
Ainulashikin Marzuki
Keyword(s):  
Mutual Fund ◽  
Market Research ◽  
Market Timing ◽  
Emerging Countries ◽  
Investment Opportunity ◽  
Fund Managers ◽  
Management Processes ◽  
Timing Ability ◽  
Different Types ◽  
The Common

The paper investigates the selectivity and market timing ability of fund houses in emerging countries. The study uses comprehensive performance models on fund houses from four emerging countries. Data span is from 2007 to 2018. Findings indicate that fund managers benefit from the common facilities provided by the fund houses like market research, diversification and investment opportunity. Fund houses showed good selectivity skills but poor market timing ability. The possible reason is that fund houses manage large and different types of funds. This resulted in more complex management processes and thus reduced the ability to track the fluctuations in the market. The findings are important for investors as they are able to allocate their resources more effectively to funds that are best managed by fund houses while for managers, they are able to position themselves relative to their competing peers.

scholarly journals Mutual Fund Performance: Evidence from India

2019 ◽  
Vol 8 (4) ◽  
pp. 11714-11723
Keyword(s):  
Portfolio Management ◽  
Mutual Fund ◽  
Market Timing ◽  
Investment Strategy ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Stock Selection ◽  
Multifactor Models ◽  
Fund Managers ◽  
Timing Ability

We empirically examine fund managers’ stock selection and market timing ability using various risk-adjusted measures such as CAPM and multifactor models of FamaFrench (1993) and Carhart (1997) to gauge mutual fund performance in India. The sample consists of 183 actively managed equity-oriented funds and covers the period from April 2000 to March 2018. The study, on the whole, documents some evidence of positive and significant stock selection ability but fails to yield any notable evidence of market timing ability of fund managers. Our results are robust according to various riskadjusted performance evaluation techniques, sub-period analysis, excluding the crisis period and at the individual fund level. The findings of our study are in line with the previous studies that report limited selectivity skill and market timing ability among fund managers. The main implication of the study is that active portfolio management may not be very rewarding in comparison to a passive investment strategy.

Quantitative Asset Managers and Their Chains

2017 ◽  
Author(s):  
Diane-Laure Arjaliès ◽  
Philip Grant ◽  
Iain Hardie ◽  
Donald MacKenzie ◽  
Ekaterina Svetlova
Keyword(s):  
Quantitative Research ◽  
Investment Strategy ◽  
Qualitative Reasoning ◽  
The Other ◽  
Investment Strategies ◽  
Self Presentation ◽  
Fund Managers ◽  
Investment Firm ◽  
Asset Managers

Chapter 4 discusses a particular set of fund managers and analysts, those who follow investment strategies which are based on quantitative research. They might be expected to be more solitary in their practices and less enmeshed in relations to clients and to other intermediaries than their colleagues who rely on more qualitative reasoning. The chapter shows, however, that this is not so. Quantitative managers’ investment ideas often come from others in the investment chain. Brokers and sell-side analysts are one major source; another source of ideas is those occupying similar roles in other firms. The chapter also suggests that basing a quantitative investment strategy around an idea that is already in circulation eases the task of marketing and the communication with clients. However, successful self-presentation to external audiences can cause internal frictions with colleagues within the investment firm, the other topic which the chapter explores in detail.

Mutual fund manager turnover: an empirical investigation of performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Avinash Ghalke ◽  
Shripad Kulkarni
Keyword(s):  
Mutual Fund ◽  
Emerging Market ◽  
Investment Strategy ◽  
Fund Performance ◽  
Fund Manager ◽  
Content Type ◽  
Fund Managers ◽  
Fund Families ◽  
Study Methodology ◽  
Factor Alpha

PurposeWhen a fund manager leaves, the investment strategy of the fund changes or remains the same. The departing fund manager's resignation is either forced or voluntary. The study investigates the relationship between the portfolio manager's transition and the fund's investment strategy and how the change affects the mutual fund returns in the subsequent period.Design/methodology/approachThe authors examine 148 fund manager changes in India between April 2005–March 2018 using three performance measures: abnormal return (fund return minus benchmark return), Jensen's alpha and Carhart four-factor alpha. The analysis includes an event study methodology, followed by a two-step Fama–MacBeth regression approach.FindingsContrary to the previous studies conducted in the developed markets, the authors find that fund performance improves irrespective of whether the fund manager change is forced or voluntary. The outperformance after the fund manager's exit is significant for funds belonging to the larger fund families.Originality/valueIn the context of investment management, the authors provide a conceptual framework to understand the effect of fund manager exit on mutual fund performance. The authors substantiate their arguments with empirical evidence. To the best of the authors' understanding, this is the first research to examine the effect of changing mutual fund managers in an emerging market setting.

Relative Value Hedge Fund Strategies

2017 ◽  
Author(s):  
George Dikanarov ◽  
Joseph McBride ◽  
Andrew C. Spieler
Keyword(s):  
Financial Markets ◽  
Hedge Fund ◽  
Systematic Risk ◽  
Investment Strategy ◽  
Trading Strategies ◽  
Fund Managers ◽  
Relative Value ◽  
Different Types ◽  
Value Strategy ◽  
Fundamental Values

Relative value strategies, also called arbitrage strategies, are trading strategies that exploit mispricing in the financial markets among the same or related assets. Relative value trading is a popular investment strategy among many hedge fund managers who try to achieve high returns while minimizing risk. To capitalize on the mispricing of assets, investment managers take long positions in the undervalued assets and short positions in the overvalued assets with the expectation that prices will revert to their fundamental values. When using relative value strategies, managers construct market-neutral portfolios to eliminate systematic risk. Fund managers employ leverage to maximize the low returns that individual trades yield. Relative value funds are an attractive investment for individuals seeking to diversify their portfolios with assets that are uncorrelated with the broader market. This chapter discusses the different subcategories within the relative value strategy and the different types of securities each subcategory trades.

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