The Performance of Sharia Equity Fund Investment Manager

Anni Maftukhah

doi:10.24252/iqtisaduna.v1i1.16056

Abstract

Sharia mutual funds are fund raising activities from investors to be managed by investment managers with sharia-based management, namely by not investing funds in companies whose types and scope of business are not in accordance with Islamic sharia. This study was conducted to determine the effect of turnover ratio, expenses ratio, fund size, managerial tenure, and fund selection skills on the performance of sharia mutual fund investment managers in Indonesia. The data used in this study are monthly Net Asset Value, BI rate, IHSG, annual turnover data, annual expenses ratio data, and prospectus of 9 sharia stock mutual funds from December 2014 to December 2018. Samples were taken based on the purposive sampling method during this research. The measurement of the performance of sharia equity fund investment managers uses the Sharpe Ratio method. The method used is multiple linear regression analysis and classic assumption tests using descriptive statistical tests, multicollinearity tests, and heteroscedasticity tests using EVIEWS 10 statistical software. The results of this study indicate that turnover ratio, fund size, fund selection skills significantly influence performance Islamic mutual fund investment manager. While expenses and managerial tenure ratios do not significantly influence the performance of investment managers in Islamic mutual funds.

Highlights

One country's economic progress can be reflected in capital market activities in that country
The multicollinearity test results showed that the VIF value on turnover ratio, expense ratio, fund size, managerial tenure, and fund selection skills was less than 10, so it can be concluded that this regression model did not contain symptoms of multicollinearity
Based on the results of data analysis, it can be concluded that the following: turnover ratio has a negative effect on the performance of Islamic mutual fund investment managers

Summary

Introduction

One country's economic progress can be reflected in capital market activities in that country. In relation to investment in the capital market, investment growth in Indonesia in the 2013-2019 period tends to fluctuate. In a situation of fluctuating investment growth, one investment instrument in the capital market, namely mutual funds, has experienced the opposite. The decline in total investment that occurred signaled economic instability. Investors invest their capital to get as many returns as possible, so they tend to avoid economic instability. As an investor, It is important to have a capable ability to minimize losses. This phenomenon causes the public to prefer investment in a safe manner, requiring experts as managers of their funds

Objectives

Methods

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Discussion

Conclusion