An Investigation of the Return Risk and Liquidity Measure for Chinese Open-Ended Funds

2020 ◽  
pp. 1118-1138
Author(s):  
Jingqi Zhang
Keyword(s):  
Insurance Industry ◽  
Information Ratio ◽  
Financial Investment ◽  
Security Industry ◽  
Risk Return ◽  
Operational Characteristics ◽  
Research Profile ◽  
Fund Industry ◽  
Rational Investment ◽  
Sharp Ratio

So far, the fund industry has become one of the four backbones of the Chinese financial system, together with the banking industry, the security industry and the insurance industry. In addition, open-ended fund shares are the mainstream of the fund industry, and the product characteristics and operational characteristics of open-ended funds will lead to an unavoidable risk of return with liquidity measure. Therefore, based on the theories of financial investment, this research profile the risk return and liquidity characteristics of three different open-ended funds in China, which are helpful to making rational investments. This article selects three different kinds of funds with the relevant data from 2012to 2017 from the Huaxia Fund Management Co. Ltd., for each fund, the authors report the beta, Sharp Ratio, Information ratio and illiquidity. These risk-return features are discussed in the context of the different asset classes that each fund has invested, thus eventually obtaining a fund which has smaller relative liquidity risk and higher return after comparing. Hence, the investor can make the rational investment from the analysis of empirical results.

An Investigation of the Return Risk and Liquidity Measure for Chinese Open-Ended Funds

2018 ◽  
Vol 8 (3) ◽  
pp. 13-30
Author(s):  
Jingqi Zhang
Keyword(s):  
Insurance Industry ◽  
Information Ratio ◽  
Financial Investment ◽  
Security Industry ◽  
Risk Return ◽  
Operational Characteristics ◽  
Research Profile ◽  
Fund Industry ◽  
Rational Investment ◽  
Sharp Ratio

So far, the fund industry has become one of the four backbones of the Chinese financial system, together with the banking industry, the security industry and the insurance industry. In addition, open-ended fund shares are the mainstream of the fund industry, and the product characteristics and operational characteristics of open-ended funds will lead to an unavoidable risk of return with liquidity measure. Therefore, based on the theories of financial investment, this research profile the risk return and liquidity characteristics of three different open-ended funds in China, which are helpful to making rational investments. This article selects three different kinds of funds with the relevant data from 2012to 2017 from the Huaxia Fund Management Co. Ltd., for each fund, the authors report the beta, Sharp Ratio, Information ratio and illiquidity. These risk-return features are discussed in the context of the different asset classes that each fund has invested, thus eventually obtaining a fund which has smaller relative liquidity risk and higher return after comparing. Hence, the investor can make the rational investment from the analysis of empirical results.

scholarly journals Portfolio management practices of investment practitioners active in the long-term insurance industry

2001 ◽  
Vol 4 (2) ◽  
pp. 344-358
Author(s):  
J. H. Mostert ◽  
S. J. Steel ◽  
F. J. Mostert
Keyword(s):  
Empirical Study ◽  
Portfolio Management ◽  
Management Practices ◽  
Insurance Industry ◽  
Investment Decisions ◽  
General Information ◽  
Financial Investment ◽  
Decisionmaking Process ◽  
Term Insurance

In the long-term insurance industry, sound financial investment decisions depend largely on the portfolio management practices of the investment practitioners concerned. The ability of the investment practitioners to make well-informed decisions, as well as the strategies and policies underlying portfolio management practices, are the main issues of this research. Important correlations amongst various aspects of the financial investment decisionmaking process, as well as their association with the general information pertaining to the long-term insurers (which were disclosed during the empirical study), emerge in the closing section of this paper. The conclusions should be of prime interest to long-term insurers as well as investment practitioners who are working in that industry.

scholarly journals Importance of external environmental labour-related risk factors for financial investment decision-making

2002 ◽  
Vol 5 (3) ◽  
pp. 644-662
Author(s):  
J. H. Mostert ◽  
S. J. Steel ◽  
F J. Mostert
Keyword(s):  
Risk Factors ◽  
Insurance Industry ◽  
Investment Decision ◽  
Relevant Literature ◽  
Knowledge Worker ◽  
Work Force ◽  
Financial Investment ◽  
Investment Decision Making ◽  
Related Risk ◽  
Term Insurance

External environmental labour-related risk factors influence the relationship between management and the work force of an enterprise. It is therefore of prime importance to consider these labour-related risk actors in order to be able to take a comprehensive financial investment decision. The risk factors concerned come from the political, economic, social and technological environments. The views of the participating investment practitioners (who are active in the long-term insurance industry) regarding these aspects are analysed against the background of relevant literature. The responses with reference to these labour-related risks in manual and knowledge worker enterprises are presented simultaneously and significant similarities and differences are highlighted.

scholarly journals A change of paradigm for the insurance industry

2018 ◽  
Vol 12 (2) ◽  
pp. 211-232 ◽  
Author(s):  
Michel Dacorogna
Keyword(s):  
Insurance Industry ◽  
Economic Valuation ◽  
Central Element ◽  
Enterprise Risk Management ◽  
Corporate Management ◽  
Risk Return ◽  
Solvency Test ◽  
Swiss Solvency Test ◽  
Enterprise Risk

AbstractIn this paper, we review changes in the insurance industry due to new risk-based regulations such as Solvency 2 and Swiss Solvency Test. The move from corporate management based on cash-flow to risk-based management is described and discussed through its consequences on capital management, economic valuation and the internal model. We discuss the limits and difficulties of enterprise risk management and its effect on the organisation of companies and the role of actuaries in insurance. The risk/return relation is becoming a central element of the company’s management slowly supplanting the traditional accounting view.

The Global Hedge Fund Industry: Structure, Strategies and Growth

2017 ◽  
Vol 18 (4) ◽  
pp. 955-973
Author(s):  
Inder Sekhar Yadav ◽  
R.K. Mishra
Keyword(s):  
Hedge Fund ◽  
Industry Structure ◽  
Investment Strategies ◽  
Global Crisis ◽  
Fund Managers ◽  
Risk Return ◽  
Fund Industry ◽  
Fund Investment

The principal aim of this study is to provide the structure, organization, growth and risk-return profile of global hedge fund industry. In particular, the objective of the study is to introduce the evolution of the global hedge fund industry and some of the most common hedge fund investment strategies used by the fund managers. Also, the present study intends to provide some current statistics of the global hedge fund industry pre- and post-global crisis of 2008.

scholarly journals Risk Return Analysis of Selected Stocks of Indian Financial Sector

2021 ◽  
pp. 111-124
Author(s):  
Sonia Lobo ◽  
Ganesh Bhat S.
Keyword(s):  
Financial Services ◽  
Financial Services Industry ◽  
Financial Investment ◽  
Services Sector ◽  
Financial Services Sector ◽  
Risk Return ◽  
Monthly Return ◽  
Significant Difference ◽  
Services Industry ◽  
The Individual

Purpose: Indian stock markets are channelizing financial resources for the economic progress of the country. The Indian Financial Services sector is the subset of the stock market which is playing a key role in stock trading. The Indian Financial Services industry is multifaceted and is growing rapidly both in terms of the robust growth of existing firms and the entry of new players playing a stellar role. This surge in growth of the Financial Services sector led many investors to divert their investment towards the financial services segment. To construct an attractive portfolio, the individual investor should perform a risk-return analysis well in advance. This will assist the investor in determining the risk-return relationship in various securities. Given this background, the study is undertaken to evaluate the risk-return patterns of the Indian Financial Services sector securities. Design/Methodology/Approach: The risk and return of sample group of companies belonging to the Indian Financial Services sector are analyzed to arrive at a monthly return by taking the monthly closing price of five financial investment companies belonging to the Standard & Poor’s BSE Finance Index for the period January 2020 to July 2021. To achieve the objectives various statistical tools such as descriptive statistics, correlation, and Beta are adopted. Also, a paired t-test is performed to check the validity of the hypothesis. Findings: The study has brought to light that India Infoline Finance Ltd (IIFL Finance) has provided the highest monthly returns with a high beta value. Further, the tested hypothesis reveals that there exists a significant difference in the monthly returns of the S&P BSE Finance Index and JSW Holdings. Originality/value: The study emphasizes the risk-return analysis of selected stocks of the Indian Financial Services sector. Potential investors will benefit from this equity analysis because it will enable them to make more intelligent and accurate investment decisions. Paper Type: A case study of the Indian Financial Services Industry

Impairment Questions and Answers

1997 ◽  
Vol 2 (2) ◽  
pp. 4-5
Keyword(s):  
Insurance Industry ◽  
Organized Labor ◽  
Injured Workers ◽  
Disability Benefits ◽  
Uniform System ◽  
Questions And Answers

Abstract Controversy attends use of the AMA Guides to the Evaluation of Permanent Impairment (AMA Guides) in defining injured workers’ permanent partial disability benefits: States desire an efficient, nonsubjective way to determine benefits for nonscheduled injuries and are using the AMA Guides to define the extent of disability. Organized labor is concerned that use of the AMA Guides, particularly with modifications, does not yield a fair analysis of an injured worker's disability. From its first issue, The Guides Newsletter emphatically emphasized and clearly stated that impairment percentages derived according to AMA Guides criteria should not be used to make direct financial awards or direct estimates of disability. The insurance industry and organized labor differ about the use of the AMA Guides in defining permanent partial disability (PPD). Insurers support use of the AMA Guides because they seek a uniform system that minimizes subjectivity in determining benefits. Organized labor is particularly concerned about the lack of fairness of directly equating impairment and disability, and if the rating plays a role in defining disability, additional issues also must be considered. More states are likely to use the AMA Guides with incorporation of additional features such as an index to PPD.

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