Asset Management Companies Research Articles

MANAGING THE “S” IN ESG: HOW ASSET MANAGERS DISCLOSE AND CONSIDER HUMAN RIGHTS

Objective: The purpose of the research was to evaluate the commitment and due diligence measures directed at human rights in a sample of the largest international and European asset management companies, under OECD guidelines. Theoretical Framework: According to the OECD, companies can impact most internationally recognised human rights. However, there is a lack of studies that directly assess the human rights due diligence in investment companies. Method: A documentary and qualitative analysis of 45 investment companies was applied. Five key performance indicators were created to measure human rights commitment and due diligence practices such as disclosure of human rights policies, cascading of compliance/obligations to investees, due diligence before and during the investment and collaboration with industry and non-industry initiatives. All companies were classified and rated according to these criteria. Results and Discussion: This research reveals that there is a dichotomy between recommendations of human rights integration in investment and actual commitment and compliance, indicating that only a minority of companies were compliant and committed to considering human rights in their investment. Research Implications: The results provide an initial benchmark of the state of the commitment towards human rights in the investment sector, allowing for further investigations to be conducted to assess the development of this dimension of ESG and CSR, particularly in this sector Originality/Value: The analysis consisted of accessing and evaluating the public information of the larger investment firms from an individual investor perspective, which provides an innovative view of human rights awareness and compliance in the investment sector.

Risk factors-adjusted performance and persistence during the post-subprime crisis period: evidence from Indian mutual fund industry

PurposeThe main objective of the paper is to find evidence of abnormal returns and performance persistence of actively managed equity funds in the Indian context on an annual basis during the post-subprime crisis period between 2009 and 10 and 2019 and 2020.Design/methodology/approachThe study is exploratory and empirical, used daily net asset value (NAV) of 180 equity funds for 10 years and applied the risk-adjusted, Jensen's (1968) single-factor, Fama and French's (1993) three-factor model and Carhart's (1997) four-factor model to evaluate the performance. The performance persistence has been tested using cross-section regression (Bollen and Busse, 2005), the non-parametric contingency approach, along with the robustness measure, i.e. Malkiel's (1995) Z-score, Brown and Goetzmann's (1995) cross-product ratio (CPR) and Kahn and Rudd's (1995) χ2 value.FindingsThe results show that the Indian equity funds are unable to generate abnormal returns, and the size, value and momentum strategies applied by the fund managers in generating abnormal returns do not work effectively. However, funds provide strong evidence of significant performance persistence on an annual basis in the short-term, mid-term and long-term periods. Both parametric as well as non-parametric tests provide identical evidence of persistence, and the performance persistence is independent of the choice of models, as all the models (i.e. two, three or four-factor models) provide significant evidence of persistence.Research limitations/implicationsThough the study is comprehensive and covered a longer period, there is a scope for future research by examining the influence of fund characteristics, fund rating and macroeconomic factors on performance and persistence. It can be extended over to a longer period covering the post-COVID-19 period, a larger sample size and a comparative study of Indian and foreign mutual funds (MFs).Practical implicationsThe outcomes of this research paper can help wealth-maximizing investors in the identification of persistent equity funds and can apply the previous period’s performance information as a useful investment strategy to generate higher returns in the future. We believe that these outcomes will have significant ramifications for all MF stakeholders and policymakers, especially for the Indian industry in ensuring and establishing the credibility of MF managers, in providing better returns as well as to make MF investment more attractive to Indian retail investors.Originality/valueDespite the exponential growth in the Indian MF industry, limited evidence is available on performance and persistence covering a large sample size during the post-sub-prime crisis period using different return models and parametric and non-parametric approaches. The study is based on the daily data set of a larger sample size representing all the Asset Management Company (AMC) and the longer period following the post-subprime crises, which affected capital flows significantly. Moreover, the application of all the measures enables us to understand performance persistence in a larger context.

A Study on Performance Evaluation of Balanced Scheme with Reference to Top 5 Asset Management Companies

A Study on Performance Evaluation of Balanced Scheme with Reference to Top 5 Asset Management Companies

Measuring business impacts on the sustainability of European-listed firms

The Environmental, Social, and Governance (ESG) themes assume a central position in the foundation of business strategies and risk management for both private managers and financial institutions. Measuring the sustainability commitment of listed companies is required by regulators and Monetary Authorities and plays a pivotal role in the selection process for asset management companies. ESG ratings are used to assess the company’s commitment to sustainability. This paper explores how a firm business, measured by balance sheet data, influences the ESG rating. In particular, we focus on Europe, which countries first paved the way for the sustainable transformation of the economy through various policies and initiatives. We employ a Machine Learning approach to discern the non-linear relationships between ESG ratings and corporate data aiming to identify the prime factors influencing the ESG ratings. We can assess potential country or business sector-based discrepancies by selecting a sample containing firms listed on the major European indices (AEX, BEL, CAC, DAX, FTSE, FTSE-MIB, IBEX, OMX). We find that the firm size, measured by total assets, and the carbon intensity are the variables that most influence the ESG rating in countries where the economic sectors rely mainly on the business cycle and economic conditions. For companies operating in the technology, financials, and industrial sectors, the main ESG driver is the asset turnover ratio, which is a measure of the efficiency with which a company generates revenues, and the EBIT to revenue, which is a measure of the operating margin asset turnover and the Earnings Before Interest and Taxes (EBIT) to revenue ratio. We discover diverse factors affecting ESG ratings across various European countries, highlighting the impact of each nation’s policy on ESG commitment.

Financial mechanisms and trends in the functioning of asset management companies

It is shown that joint investment institutions in Ukraine perform an important function in the economic development of the country, contributing to the redistribution of capital, stimulation of the investment process and development of the stock market. Asset management companies (AMC) are an integral part of the joint investment market in Ukraine, providing professional asset management, increasing the efficiency of the investment process and contributing to the country’s economic development. The paper presents the results of the assessment of the dynamics, structure of AMC indicators according to the main type of their activity according to KVED 66.30 - fund management, and also formalized their trends for the period 2013-2022, which have high values of indicators of multiple determination. It was established that the value of non-current assets increased by 3.33 times, mainly due to micro-enterprises, small enterprises prevail in their structure. The value of AMC's current assets increased by 1.79 times, mainly at the expense of micro-enterprises, the share of medium-sized enterprises in their structure decreased, and small ones increased. The value of AMC's own capital increased by 1.92 times, mainly due to micro-enterprises, the share of medium-sized enterprises in its structure decreased, and the share of small enterprises increased. The cost of AMC capital increased by 2.22 times, mainly at the expense of micro-enterprises. The specific weight of AMC's own capital decreased from 78.1% to 67.6%, including at the expense of medium and small enterprises. On the other hand, the share of equity in the balance sheets of micro-enterprises - AMC increased from 71.4% to 82.2%. Thus, the financial stability of AMC is sufficient, but it is reduced at the expense of medium-sized enterprises, but the financial stability of micro-enterprises is strengthened. The dynamics of non-current assets, current assets, assets in general, AMC's equity is described by a parabola with upward branches. It is proven that the active participation of the AMC in the stock market increases its liquidity and stability, which creates favorable conditions for attracting financial resources. Investments made through investment funds contribute to the development of various sectors of the economy, the creation of new jobs and an increase in tax revenues to the budget. Transparency and professional asset management attract foreign investors, which contributes to the inflow of capital into the country's economy.

The Case for (and Against) Asset Management Companies in Banking Crises

The Case for (and Against) Asset Management Companies in Banking Crises

A Study on Indian Mutual Funds

The Indian mutual fund industry performs a pivotal position in the U. S. A.'s monetary landscape, supplying a extensive spectrum of funding alternatives tailored to fulfill the numerous monetary desires and danger appetites of buyers. This studies paper goals to delve into the overall performance, strategies, and effect of mutual funds controlled via Asset Management Companies (AMCs) in India. It explores the variety of schemes available, inclusive of fairness funds, debt, liquid, gilt, and balanced funds, catering to each younger and pro buyer. The observe also examines the regulatory framework designed to defend traders' pastimes, emphasizing the enterprise's commitment to transparency and accountability. Furthermore, the paper investigates the evolving dynamics inside the mutual fund region, especially in light of growing competition among AMCs. It seeks to apprehend investor orientations in the direction of mutual budget, specializing in chance urge for food and alternatives for numerous schemes, plans, and alternatives regarding fee of returns, dividend frequency, and liquidity. Through comprehensive evaluation, the studies pursuits to provide insights that could manual AMC strategies and policies, in the end enhancing the overall investor revel in and fostering boom within the Indian mutual fund industry. KEYWORDS: Research Paper, NAV (Net Asset Value), SIP (Systematic Investment Plan), ELSS (Equity Linked Savings Scheme), AUM (Assets Under Management), Growth Option, Dividend Options.

Controlling Shareholders’ Pledge Pressure and Financial Asset Investment: An Empirical Analysis based on Pledge Price

ABSTRACT Unlike existing literature that primarily examines the quantity of share pledges, this study delves into the impact of controlling shareholders’ share pledge pressure on firms’ financial asset investment. Using manually collected pledge price data and focusing on Chinese listed firms from 2007 to 2018, we observe a positive correlation: the higher the controlling shareholders’ share pledge pressure is, the higher the firm’s financial investment will be. Our findings withstand various robustness tests. Channel tests reveal that share pledge pressure expedites financial asset investment by increasing operational and cash flow risks. Moreover, the impact of share pledge pressure on a firm’s financial investment becomes more pronounced when the pledgee is a securities or asset management company, the pledge duration is longer, the controlling shareholder’s pledge ratio is higher, or the firm faces a challenging business environment. This study offers valuable insights for accurately and directly measuring controlling shareholders’ share pledge pressure and underscores the pivotal role of share pledging in firm investment decisions.

Research on Disposal of Non-Performing Assets of Listed Companies

China's economic development is affected by adverse factors such as cyclical and structural adjustment of the domestic economy, but also by the sudden impact of the international political and economic environment, and the complex economic environment at home and abroad has greatly challenged the development of Chinese enterprises. The problem of non-performing assets is a prominent problem facing the high-quality development of China's economy. It requires both enterprises to regulate their own risks and asset management companies to properly and reasonably dispose of non-performing assets to prevent these assets from having an impact on systemic risks and then affecting other economies. Solving the problem of non-performing assets in a reasonable way can effectively deal with the non-performing assets, and then promote and prevent the further spread of the non-performing assets crisis of enterprises. This paper analyzes that the asset disposal mode of "stock plus bond" provides a reference for other NPL disposal methods, and helps other enterprises to dispose NPL efficiently. When dealing with non-performing assets, there are risks from debtors and creditors. To prevent and address these problems, detailed and precise asset-liability analysis, a well-developed restructuring plan, and enhanced collaboration between departments are required." The "equity plus bond" model combines the centralized disposal method of non-performing assets, which can effectively deal with these non-performing assets, better reduce risks and improve operations.

Performance of the Asset Management Companies in the US

This paper seeks to identify the factors that may affect the financial performance and stock return of Asset Management Companies (AMCs) in the United States. The study focuses on a sample of fifty listed AMCs and uses data for the four years 2019-2022. Financial performance is computed as Return on Assets, Return on Equity, and Return on Capital Employed. Stock return is calculated with monthly and annual stock price data. Liquidity, solvency, and efficiency factors are used as explanatory variables, along with the size of the companies. The results show that the financial performance is negatively related to the debts-to-assets ratio. The opposite relation is found for stock return. The impact of the debt-to-equity ratio on performance is positive. This is also the case for assets turnover, net cash flow-to-assets ratio, and size.

Integrating Personality Traits and Behavioral Theories in Mutual Fund Investments: Unveiling Investor Dynamics

This article explores the interplay between personality traits, particularly the Big Five model, and the Theory of Planned Behavior (TPB) in shaping individual investment decisions in mutual funds. Utilizing the TPB's framework, the study examines attitudes, subjective norms, and perceived control, linking them to investor intentions. Focusing on India's growing mutual fund industry, the article highlights key industry metrics, indicating robust growth in assets under management and retail participation. Comparisons with developed countries underscore India's untapped potential in mutual fund investments. The research delves into the determinants of investment decisions, considering rationality, socioeconomic factors, and the impact of personality traits. Theoretical frameworks and literature synthesis support the proposed behavior intention model. The findings emphasize the vital role of personality, particularly openness to experience, in influencing investment behavior. In conclusion, the study contributes insights for asset management companies in tailoring schemes to align with investor commonalities. Keywords: Investor, personality traits, Theory of Planned Behavior, Mutual Funds investment

Anti-Greenwashing Initiatives and their Ripple Effect-an Europian Way

This article addresses the proactive measures taken in Europe to combat greenwashing, mainly targeting asset management companies. Notably, the Sustainable Finance Disclosure Regulations (SFDR) have been introduced to enforce sustainability-related disclosure requirements. To make sustainable investing more transparent, substantial initiatives to enhance the environment and society must be disclosed, fostering a more profound understanding among consumers and investors and contributing to environmental protection.
 As Europe advances to combat greenwashing, it raises the possibility of similar initiatives emerging in the Japanese investment trust market to instil confidence among market participants. This article explores suspected cases and issues related to greenwashing while contemplating future challenges in this evolving landscape. It also speaks about promoting sustainability investments by asset management companies.

Impact of Employee Engagement On Service Quality in Nigerian Public Agencies

This study investigates the connection between employee engagement and service quality in the Asset Management Company of Nigeria (AMCON), which is a key player in Nigeria's financial sector. This study examines three key dimensions of employee engagement – absorption, vigor, and dedication – and their effects on service quality, specifically focusing on the responsiveness dimension of the SERVQUAL model. This study is important because there is a lack of representation of AMCON and similar institutions in the existing literature, particularly within the context of Nigeria's unique financial landscape. This study utilized a mixed-methods approach that included quantitative surveys and qualitative interviews with AMCON employees. The analysis employed the SERVQUAL model to evaluate service quality and multiple regression analysis to explore the influence of each engagement dimension. The findings of this study are expected to contribute to a theoretical understanding of the impact of employee engagement on service quality within the asset management sector. Additionally, this study aims to provide practical insights for AMCON, potentially improving service delivery strategies and effectiveness in fulfilling its mandate. The broader implications of this study extend to similar asset management entities in emerging economies, providing a comparative perspective, and understanding of these dynamics in diverse economic and regulatory environments.

Asset Separation as a Bank Failure Management Tool

The article is devoted to the legal aspects of an asset separation tool as a bank failure management tool. Asset separation tool is provided by FSB Key Attributes of Effective Resolution Regimes for Financial Institutions and Directive 2014/59/EU (Bank Recovery and Resolution Directive, or BRRD). However, it has not been implemented in Ukrainian legislation to date. The article defines key elements required for effective transposition of the asset separation tool. It is fundamentally important to ensure clarity in the authority’s powers to conduct non-performing assets transfer to an asset management company and powers to transfer them back in cases provided in the law, as the framework should be predictable for all stakeholders. General rules for obtaining the consent of owners of the failed banks or any other parties should not be applicable. The assets should be transferred to the asset management company with the view to value maximization or orderly liquidation. An asset separation tool is not a standalone tool and shall be applied along with other tools to deal with bank failures. The article also defines key safeguards and requirements for an asset management company to operate efficiently and mitigate risks of political interference. Most asset management companies designed for bank failure management are owned by the state, and in line with this the BRRD envisages that an asset management shall wholly or partially belong to the state or a resolution authority. The BRRD provides that the resolution authority shall approve a statutory document of the asset management company, management and their remuneration, as well as the strategy and risk profile of the company. At the same time, there should be safeguards to ensure that the asset management company should be commercially oriented and operationally independent. The most efficient asset management companies have a narrow mandate. Special powers may be introduced for an asset management company when the general framework has impediments to the efficient operation of an asset management company. It should be noted that the asset management company has a temporary nature and should be wound up once its goal is reached. Necessary incentives should be introduced in this regard. This could be a sunset clause, defined interim key performance indicators, which should be flexible and regularly reviewed, and financial incentives for staff of the asset management company. It is suggested to introduce amendments to the Law of Ukraine ‘On household deposit guarantee system’ to implement the particularities described in the article.

Review Paper- “COMPARATIVE STUDY OF MUTUAL FUNDS IN INDIA REGARDS TO FINSAARTHI LEARNING SOLUTIONS”

Mutual fund is an important and good source of investment options for investors. This source helps the investors in earning better returns compared to other source of investment. In India most of the people does not have the adequate knowledge on the subject of mutual fund. They feel that investment in mutual is unsafe and it’s like gambling. The lack of awareness and misunderstanding about mutual fund leads to low investment in this industry. There is a need to raise public awareness by enlightening people about the advantages of investing in mutual funds. This report Contains information on the performance of chosen companies from various mutual fund schemes. The study’s major goal is to figure out why SBI mutual fund schemes outperform when compared to other companies’ mutual fund schemes and to scrutinize the risk and return of various funds. As in India companies are focusing young people and adopting modern technology aspect in this industry. This project gave a knowledge exposure and I was able to understand the performance of fund and customer behavior towards mutual fund. In this project report the first part includes industry and company related information, vision, mission, SWOT Analysis and financial reports of the company. Keywords – Asset Management Company, Asset Under Management, Mutual Funds, Net Asset Value..

Integration of Advanced Sri Practices Into the European Asset Management Industry: A Survey of Drivers

Sustainable and responsible investment (SRI) has experienced impressive growth in the last two decades. However, the adoption of advanced SRI strategies that go beyond the mere exclusion of companies or asset classes has not kept pace with this expansion, a critical development regarding its potential impact on sustainability. For this reason, this study aims to identify the main drivers for the adoption of advanced sustainable and responsible investment practices by asset management companies to know why and which companies better advance the strengthening of SRI in the European financial market considering an original combination of different SRI drivers. To investigate which factors seem to be more decisive in adopting more sophisticated SRI practices, we first conducted a survey among fund management companies that manage and/or distribute investment funds in Europe. Second, we used logistic and multivariate regressions as analytical tools for testing the hypotheses. Results show that societal pressures and a formal corporate social responsibility policy are the main drivers for adopting advanced SRI practices by asset management companies.

Experience of Asian Asset Management Companies: Do They Increase Moral Hazard?-Evidence from Thailand

Experience of Asian Asset Management Companies: Do They Increase Moral Hazard?-Evidence from Thailand

A Suggestion For The Asset Management Company Operating in Compliance With Participation Finance Principles

Varlık Yönetim Şirketleri, finans kurumlarında meydana gelen sorunlu varlıkları satın alıp kuruma likidite sağlama ve bu kurumları sorunlu varlıklardan arındırma amacıyla ortaya çıkmıştır. Zaman zaman ülke ekonomilerinde meydana gelen bozulmalar ve bunun sonucu olarak vatandaşların ve finans kurumlarının ekonomik durumunun bozulması bu şirketlerin kurulmasına sebep olmuştur. Varlık Yönetim Şirketi’nin ilk örneği 1930’lu yıllarda Avusturya’da görülmesine rağmen bu şirketlerin ülkemizde gündeme gelmeye başlaması 2001 krizinden sonra olmuştur. 
 Varlık Yönetim Şirketleri’nin, konvansiyonel bankalardaki sorunlu varlıkları çok düşük miktarlarda satın alıp bu borçları asıl sahibinden tahsil etme amacıyla kurulması sebebiyle İslâm hukukundaki faiz yasağını dikkate aldığını söyleyemeyiz. Dolayısıyla mevcut Varlık Yönetim Şirketleri’nin, İslâm hukuku açısından meşruiyetinin bulunduğunu ifade etmek mümkün değildir. Diğer taraftan katılım bankalarının da sorunlu varlıklara sahip olabileceğini düşündüğümüzde faizsiz işlem yapan ve İslâm hukuku ilkelerine riayet eden bir Varlık Yönetim Şirketine de ihtiyaç olmalıdır. Bu kapsamda, İslâm hukuku kaideleri çerçevesinde faaliyet yürütmeyi hedefleyen Varlık Yönetim Şirketleri için birtakım ilkeler belirlemek zaruridir.
 İslâm hukuku tarihinde borç satım uygulamaları, âlimler nezdinde çokça tartışılmıştır. Tartışmanın ana kaynağını Hz. Peygamberden rivayet olunan “Nebi (s.a.s.), borcun borca karşılık satımını yasakladı.” hadisi oluşturmaktadır. Nitekim bu hadis etrafında çokça görüş zikredilmiş, hadisin zayıf olduğu ifade edilmiş ve yine zayıf olduğu ifade edilmekle birlikte mana itibariyle doğru olduğu yönünde görüşler de belirtilmiştir. Diğer taraftan hadisin, borç satım uygulamalarından hangisini kapsadığı hususunda da ihtilâflar bulunmaktadır. Kimi âlimler, hadisi mutlak kabul ederek borcun hiçbir şekilde satımına cevaz vermemişlerdir. Kimi âlimler ise hadisin kapsamını daha dar tutmuş ve faizli bir işlem meydana getiren veya yapılan işlemin insanların faydasına olmadığı borç satım uygulamalarının caiz olmadığını ifade etmişlerdir.
 Hanefî mezhebi, teslim edilebilir olmadığı gerekçesiyle borç satımına hiçbir şekilde cevaz vermemiştir. Şâfiî mezhebi ise mezhep görüşü itibariyle böyle bir görüşe sahip olmakla birlikte borcun bir ayn yani mal karşılığında peşin olarak satın alınması konusunda bireysel ihtilâflar yaşamıştır. Mâliki mezhebi ise bu iki mezhebe göre daha ılımlıdır. Nitekim öne sürmüş olduğu birtakım şartlar ile birlikte borcun, borçlunun bizzat kendisine veya üçüncü bir şahsa mal veya menfaat karşılığında satımının mümkün olduğu görüşünü benimsemiştir. Bu konuda en özgür davranan âlimler ise İbn Teymiyye ve öğrencisi İbn Kayyim el-Cevziyye’dir. Bu iki âlime göre, yukarıda bahsi geçen hadis ile yasaklanan borç satımı, her iki tarafın daha önce zimmetinde bir borç bulunmaksızın vadeli olarak yeni bir alım satım faaliyeti yapmalarıdır. Zimmette sabit olan bir borcun, borçlunun kendisine veya üçüncü bir şahsa, bir ayn veya aynın menfaati karşılığında satımı ise mümkün ve caizdir.
 Yukarıda zikrettiğimiz görüşlere ilave olarak günümüz âlimleri veya fetva kurulları arasında Mâlikî mezhebinin görüşü üzerine içtihat edenler bulunmaktadır. Örneğin İslam Fıkıh Akademisi ve Türkiye Katılım Bankaları Birliği Danışma Kurulu, borcun bir ayn veya aynın menfaati veya bir hizmet karşılığında üçüncü kişilere peşin olarak satımı şeklinde gerçekleşen uygulamaların caiz olabileceği yönünde görüş belirtmişlerdir.
 Bu makalede, güncel bir ihtiyaç olduğu düşünülmesi sebebiyle katılım finans ilkelerine uygun faaliyet yürütebilecek Varlık Yönetim Şirketi’nin nasıl olması gerektiği ve hangi ilkeler bazında hangi yöntemler ile sorunlu varlıkları satın alabileceği konuları tartışılmıştır. Bu bağlamda öncelikle borç satım uygulamalarına dair klasik fıkıh eserlerindeki uygulamalar incelenmiş, değerlendirilmiş ve akabinde İslâm hukukuna uygun faaliyet yürüten bir Varlık Yönetim Şirketi modeli önerilmiştir.

Implementation of Syirkah Principles (Partnership) in the Establishment of a Waqf Asset Management Company

The waqf institution is one of the economic potentials in Islam which in its history has made a major contribution to the progress of human civilization, including improving economic welfare in society. Managing waqf in a trustworthy and professional manner is important to increase waqf assets and benefits. In this case, the nazhir plays an important role in managing waqf both independently and in collaboration with business entities. Partnerships can be entered into by nazhir with various parties including the Company. In Islamic Law, we recognize the concept of Syirkah (partnership) for business collaboration, including in the formation of companies. This research examines how syirkah as a concept of economic cooperation originates from Islamic law in nazhir partnerships managing waqf assets including the potential for forming waqf-based companies. The analysis method is a normative juridical, namely through a legal approach, both national law and Islamic law, which is supported by empirical data in the field related to companies that manage waqf. Through this article, it is hoped that we can provide an appropriate model for implementing the syirkah/partnership concept in waqf management, including the concept of forming a waqf-based company that can be offered to increase the professionalism of waqf management. Syirkah as the basic concept of company formation in Islam, can be integrated into the formation of a company to manage waqf assets. syirkah amlaak which comes from joint ownership assets that are donated and managed productively, then the results are distributed according to the purpose of the waqf pledge. Besides that, the principles of syirkah inan and syirkah mudharabah can also be applied, which are components of cash waqf that are used as business capital and the profits for the purpose of waqf. An interesting new paradigm for collaboration between waqf and companies includes the Corporate Social Responsibility (CSR) Program. Through the CSR Program, Waqf Management will synergize with company activities in a professional and sustainable manner.

Predicting the Direction of the Lq45 Stock Market in Indonesia

To cope with the unpredictability of the stock market, investors should have a solid understanding of the ups and downs of bullish and bearish phases. This is especially true when looking at Indonesia's LQ45 index, which consists of 45 of the most liquid stocks in Indonesia. This study carefully predicts the future direction of movement of the LQ45 stock price index by first figuring out its bearish and bullish periods, and then finding important macroeconomic factors. In this study, techniques such as X13 ARIMA SEATS, Bry-Boschan, and Binomial Logistic Regression are used to find clear bullish and bearish phases in the LQ45 index time frame. These techniques also point out certain macroeconomic indicators, such as Motor Sales, Retail Sales, Oil Price, BI Rate, 1-month Deposito Rate Working Capital Rate, Rupiah Exchange Rate, Inflation Narrow Money, Broad Money, US PMI Manufacture, and US Inflation, which have a great effect on these market conditions, as indicated by their p-values. Based on these insights, predictive models were created to show how the LQ45 index may change in the future. These models provide asset management companies with a solid basis for making smart investment decisions, with a tendency to be more aggressive when the market is up and more cautious when the market is down. This study is special because it combines the analysis of LQ45 index market trends with important macroeconomic factors in a way that has never been done before in the Indonesian market.