Domestic Funds Research Articles

Optimization of human capital in the agrarian sphere: goals, principles and methods

Sufficient provision of agricultural enterprises with labor resources, their territorial and structural balance, rational use, high level of labor productivity are the key directions of effective functioning of agro-industrial complex, growth of production volumes and increase of its efficiency. Purpose - to analyze the criteria of human capital optimization in the agrarian sphere, to identify existing problems and to determine promising directions. Methods - the study used quantitative and qualitative analysis methods, including the collection and processing of statistical data, questionnaire survey of employees of the agrarian sector, as well as interviews with farm managers. Using the correlation and regression method, the influence of the studied factors on the optimization of labor activity was substantiated. Results - the article identifies the main issues of agricultural staffing, which consist in the decline in the professional qualification level of specialists, low staffing levels, outflow of able-bodied population from rural areas, loss of prestige of agricultural professions. Conclusions - this study emphasizes the need for a comprehensive approach to the management of labor potential in agro-industrial production of the republic. The introduction of advanced training programs, improvement of working conditions and social infrastructure is the basis for sustainable development of the industry. It is also recommended to strengthen state support and stimulate the attraction of capital of domestic and foreign private investors and investment funds in rural regions to ensure stable activity of agricultural enterprises. It shows further prospects for increasing human resources to ensure the competitiveness of domestic agricultural producers and as the main driving element in the establishment of innovation economy and the expansion of globalization processes.

Enhancing the sustainable development of investment funds: a study of the stock market in Vietnam

Stock investment funds play an important role in the development of the stock market by creating demand for the market, while increasing the professionalism of market activities. With expertise, the ability to access and process information effectively, investment funds will bring benefits to all participants. The role of stock investment funds becomes even more important in developing countries where market information is often imperfect and the state's warning systems and control capabilities are limited. In Vietnam, the strong growth of the stock market over the past 10 years has been the foundation for the formation and development of stock investment funds. However, Vietnam's fund industry has only started to take shape in the last 5 years. Up to now, there are only 24 domestic closed-end stock investment funds operating on the Vietnamese stock market, with limited size and diversity of fund products compared to the market potential. At the same time, the stock investment funds themselves have not yet promoted their role in attracting investment capital, leading individual investors, and contributing to the stability of the stock market during their existence. Keywords: Investment Fund, Stocks, Vietnam.

Climate change in Europe and international portfolio allocation: Micro‐level evidence from global funds

AbstractThis paper investigates the impact of climate change on international portfolio allocations of global funds. We select the heat wave disasters in Europe in 2018 as a quasi‐natural experiment and employ the DID framework. Our findings indicate that global funds would reduce their holdings in the affected country after heat wave disasters. The congestion of inland waterways and electricity shortages during the heatwave have resulted in production delays, thereby transmit risks to the financial sector. Countries with higher foreign exposure experience a larger scale of capital outflow after heat waves; while countries with great institutional quality and resilience demonstrate greater capacity to withstand heat wave disasters. The funds with lower risk tolerance are more sensitive to climate change. Additionally, domestic funds will remain in their home countries post‐heatwave when foreign capitals flow away. These findings have important policy implications, and countries with high climate risks should carefully monitor the capital flows. In order to reduce the impact of climate risks, it is crucial to improve the quality of institution and efficiency of government as well as to implement effective disaster prevention and mitigation measures.

Evaluating the Impact of Inflation and Exchange Rates on the Net Active Value (NAV) of Conventional Mutual Funds in Indonesia

The growing development in the financial industry and the current high inflation rate are a great worry for investment prospects, especially mutual funds. Conventional mutual funds in Indonesia have experienced significant growth in the capital market. In the last 10 years, the number of domestic mutual funds has continued to increase. One measure of investment performance in mutual funds is proxied by the Net Asset Value (NAV) of mutual funds. Therefore, the objective of this study is to evaluate the influence of macroeconomics variables on the NAV of conventional mutual funds in Indonesia. In this study, using commercial bank data in Indonesia, we estimate an empirical model of the effect of inflation and exchange rates on the NAV of conventional mutual funds in Indonesia during the period 2012–2022. We employ a time series model using the Ordinary Least Square (OLS). The main findings show that while inflation has no effect on the NAV of conventional mutual funds, the exchange rate has a significant effect on it because there are many instruments in conventional mutual funds that have invested abroad due to changes in exchange rates that appear with dominant results that do not affect the growth of the NAV of conventional mutual funds. Keywords: macroeconomics, net active value (NAV), mutual funds

Exploring determinants impacting foreign direct investment in the real estate sector: a study on the Indian economy

PurposeForeign direct investment in the real estate (FDIRE) sector is required to bridge the gap between investment needed and domestic funds. Further, foreign direct investment is gaining importance because other sources of raising finance such as External Commercial Borrowing and foreign currency convertible bonds have been banned in the Indian real estate sector. Therefore, the objective of the study is to explore the determinants attracting foreign direct investment in real estate and to assess the impact of those variables on foreign direct investments in real estate.Design/methodology/approachJohansen cointegration test, vector error correction model along with variance decomposition and impulse response function are employed to understand the nexus of the relationship between various macroeconomic variables and foreign direct investment in real estate.FindingsThe results indicate that infrastructure, GDP and tourism act as drivers of foreign direct investment in real estate. However, interest rates act as a barrier.Originality/valueThis article aimed at exploring factors attracting FDIRE along with estimating the impact of identified variables on FDI in real estate. Unlike other studies, this study considers FDI in real estate instead of foreign real estate investments.

Do ESG funds engage in portfolio pumping to gain higher flows? An application of Benford's Law

AbstractPortfolio pumping is identified as an ‘illegal’ trading practice that involves inflating quarter‐ and year‐end portfolio returns. Utilizing U.S. domestic equity mutual fund daily return data, we examine whether environmental, social, and governance (ESG) funds engage in portfolio pumping to generate higher flows. Our findings reveal that, on average, ESG funds attract 0.4% higher flows than other funds. However, they engage in portfolio pumping and achieve returns that are 5.3 basis points (bps) higher at quarter ends compared to their returns during the rest of the year. This practice does not result in additional fund flows. Notably, compared to other funds, ESG funds exhibit a significant 4 bps reduction through portfolio pumping. This implies that, on the last day of the quarter, ESG funds earn approximately 4 bps lower returns compared to other funds. Portfolio pumping is costly for both investors and financial markets since it leads to trading activities that cause stock prices to deviate from their fundamental values. ESG funds engage less in portfolio pumping than other funds, which indicates that their primary focus is to maximize fund flows rather than enhance or create a positive social impact on the underlying firm portfolio. Investors seem to understand this goal, particularly when ESG funds engage in portfolio pumping and avoid investing in ESG funds.

Analysis and Reflection on the Operation Status of Residential Special Maintenance Funds

Residential special maintenance funds are large in volume and play an important role in safeguarding people's livelihood. In recent years, many problems have been exposed in the operation of maintenance funds: in management, the funds are unpaid, no value-added power, easy to be misappropriated, and insufficient supervision; in use, the funds are inefficiently utilized, and the application for use is cumbersome, and so on. Compared with developed regions at home and abroad, most of the domestic maintenance fund system changes have not touched the root of information asymmetry. Therefore, this paper tries to summarize the current major domestic problems and domestic and international experiences, in order to prepare for the introduction of insurance mechanism and other mature mechanisms into the residential special maintenance fund management system.

Can mutual fund characteristics predict future performance? Evidence from Portugal

PurposeThis paper aims to investigate not only the performance of Portuguese mutual funds investing in domestic and international equities but also which fund characteristics, such as age, size, family size, expense ratios and flows, influence future performance.Design/methodology/approachFund performance is evaluated over the 2005–2022 period by a robust six-factor model, while the impact of fund characteristics on performance is assessed by a set of fixed-effects panel data regressions with two-way cluster-robust standard errors.FindingsThe results show that, while funds investing in domestic equities predominantly exhibit neutral performance, most international equity funds have significantly negative alphas. The authors document a negative and statistically significant relationship between fund age and performance for all fund categories. Total expense ratios have an inverse relationship with domestic equity fund performance but do not impact the performance of international equity funds significantly. Though fund flows have a neutral effect on performance across the overall period, they are important determinants of both domestic and international funds’ performance in more recent years.Originality/valueThe authors contribute to the literature by carrying out a comprehensive analysis, based on recent and robust methodologies, of the impact of mutual fund characteristics on the future performance of Portuguese equity funds. The research findings serve as a premise for advising investors on how to choose the top-performing funds.

The Impact of Co-Curricular Activities on Enrollment and Academic Performance at Primary Level

Over time, the literacy rate enrollment rates and learning outcomes in Sindh have remained static, and despite efforts and pouring a lot of domestic and foreign funds, no visible improvement either in the state of schools has been observed, or any improvements in the enrollment or learning outcomes have been noticed. One key element that is mostly ignored is to make teaching-learning interesting and child-centred in an informal way by introducing co-curricular activities. Co–curricular activities are physical activities and programs that are informal ways of learning and help create a healthy and active learning process at school. This paper highlights the importance of co-curricular activities on child development and its effects on adulthood. Holistic child development is the best way to develop healthy, economically sound nations. Studies have shown that healthy and economically strong countries have strong early childhood education systems. This independent study has examined the impact of co-curricular activities on the increase in enrollment and learning outcomes at primary schools in the Layari district of Karachi by identifying schools with playgrounds. These include physical and mental activities like outdoor and indoor plays, mental activities, and exercises.

ESG펀드 성과 및 시장지수와의 정보이전 효과에 관한 연구

ESG펀드 성과 및 시장지수와의 정보이전 효과에 관한 연구

"TGT-Lcarbon" - A Non-Profit Third-party Carbon Fund Platform

In the context of "carbon neutrality" and "carbon peak", energy conservation, environmental protection, and low-carbon life have become the mainstream of society. As a new force in the development of green economy, carbon trading has become an indispensable part of the financial market. There are unlimited business opportunities in the carbon market, and the good development of carbon funds is of great significance to promoting the development of China's CDM projects and enhancing the international competitiveness of the low-carbon economy. At present, government-led public welfare carbon funds are the main driving force in China's carbon financial market. Narrow financing channels have caused China's carbon financial market to face a funding gap, and there is an urgent need for social funds to participate in the carbon financial market. Therefore, this article first analyzes carbon funds and their operating methods; secondly, sorts out the existing domestic and foreign carbon fund transaction types, focusing on domestic carbon funds; and finally, in order to better serve the real economy’s low-carbon emission reduction Develop and better develop China's carbon financial market, and study the role and significance of carbon funds as media investors and financing parties in the financial system.

Commonality without convergence: An analytical framework Accounting for variegated financialisation in emerging economies

Financialisation is not a homogenous but a variegated process. However, the question along which categories this variegation happens is currently unanswered. We identify four variegation categories: financial sector structure, productive structures, the role of the state, and the growth model. We apply these categories to two seemingly similar emerging-economy contexts which have produced different financialisation experiences: Colombia and South Africa. Financialisation in South Africa is much more market-based, meaning it is led by the financial sector unfolding through financial markets and banks’ activities visible in their much larger size, activity, and international interconnectedness, than in Colombia. Hence, South African credit extension, bond markets, domestic pension funds, and stock market capitalisation are substantially larger than Colombia’s, while the Rand has experienced strong internationalisation since 2000. Nevertheless, there is evidence financialisation processes have been unfolding dynamically in both countries over the past two decades, reinforcing the view of variegated financialisation as a common tendency with significant heterogeneities across countries.

The impact of COVID-19 on health financing in Kenya.

Sudden shocks to health systems, such as the COVID-19 pandemic may disrupt health system functions. Health system functions may also influence the health system's ability to deliver in the face of sudden shocks such as the COVID-19 pandemic. We examined the impact of COVID-19 on the health financing function in Kenya, and how specific health financing arrangements influenced the health systems capacity to deliver services during the COVID-19 pandemic.We conducted a cross-sectional study in three purposively selected counties in Kenya using a qualitative approach. We collected data using in-depth interviews (n = 56) and relevant document reviews. We interviewed national level health financing stakeholders, county department of health managers, health facility managers and COVID-19 healthcare workers. We analysed data using a framework approach. Purchasing arrangements: COVID-19 services were partially subsidized by the national government, exposing individuals to out-of-pocket costs given the high costs of these services. The National Health Insurance Fund (NHIF) adapted its enhanced scheme's benefit package targeting formal sector groups to include COVID-19 services but did not make any adaptations to its general scheme targeting the less well-off in society. This had potential equity implications. Public Finance Management (PFM) systems: Nationally, PFM processes were adaptable and partly flexible allowing shorter timelines for budget and procurement processes. At county level, PFM systems were partially flexible with some resource reallocation but maintained centralized purchasing arrangements. The flow of funds to counties and health facilities was delayed and the procurement processes were lengthy. Reproductive and child health services: Domestic and donor funds were reallocated towards the pandemic response resulting in postponement of program activities and affected family planning service delivery. Universal Health Coverage (UHC) plans: Prioritization of UHC related activities was negatively impacted due the shift of focus to the pandemic response. Contrarily the strategic investments in the health sector were found to be a beneficial approach in strengthening the health system. Strengthening health systems to improve their resilience to cope with public health emergencies requires substantial investment of financial and non-financial resources. Health financing arrangements are integral in determining the extent of adaptability, flexibility, and responsiveness of health system to COVID-19 and future pandemics.

Research on the Investment Strategy of Private Equity Investment Fund Targeted Increase in NEEQ — An Empirical Analysis Based on BP and Hopfield Neural Network Model

Private equity investment funds targeted increase in NEEQ has become a new strategy for PE investment. However, the currently adopted Logit regression and one-factor ANOVA models are not suitable for analyzing nonlinear investment activities, and the investment appraisal does not work well. In this paper, all NEEQ companies that implemented private placement in 2017 are used as the study sample. This paper also empirically analyzes the current situation of domestic private equity investment funds based on BP and Hopfield neural network models, then the results of the two models are compared. It is concluded that the accuracy of the BP neural network model can be more than 90%. So, the BP neural network can be used as the optimal model of private equity investment funds investment strategy in NEEQ.

Study on Portfolio Strategy of FOF Funds

FOF, as an emerging financial model, diversifies fund products and gives investors a new investment experience. This paper analyzes the following aspects: Firstly, it gives an overview of the investment status of FOF funds at domestic and overseas; secondly, it introduces the development history and status of domestic FOF funds; then, it elaborates on the characteristics and mode of operation for FOF funds; finally, it puts forward the management principles of FOF funds and analyzes the advantages and disadvantages of FOF funds with empirical data. Moreover, the study above shows that China is still lagging behind in the development of FOF funds. However, with the continuous opening of the financial market, more and more foreign investors are entering our market. Therefore, it is necessary to strengthen the understanding of FOF funds, actively explore new investment models and improve our own investment level.

Market crises and benchmark-adjusted fund alphas in a small market context

Most mutual fund performance evaluation studies interpret fund alphas as the incremental performance of managers in relation to passive benchmark indices, which should exhibit statistically insignificant alphas. However, if these indices present significant non-zero alphas, standard (non-adjusted) fund alphas are biased. This paper investigates the impact of using benchmark-adjusted alphas to assess the performance of Portuguese-based mutual funds, investing in domestic and European equities. For the period 2000-2020, our results show that fund benchmarks exhibit significantly negative alphas, which lead to an underestimation of mutual fund performance when employing standard models. As a result, benchmark-adjusted alphas are significantly higher than unadjusted alphas for both fund categories, though the differences are larger for domestic than for European funds. We have also found that the impact of the benchmark-adjustment procedure depends on the state of markets. The domestic (European) benchmark exhibits considerably lower (higher) alphas during crisis than during non-crisis periods. During market crises, the differences between pre- and post-adjustment alphas are statistically significant only for domestic funds, whereas during non-crisis periods, both fund categories exhibit significant performance improvements. Our findings suggest that the benchmark-adjustment procedure has a higher impact when benchmark indices exhibit higher concentration.

Tuberculosis prevention, diagnosis, and treatment financial profile during 2006–2021: PART A

BackgroundTuberculosis (TB) is a communicable disease that is a major cause of death and one of the leading causes of death worldwide. Currently, there is no analyzed data to examine the financial profile of TB by country, continent, and year; this article analyzed TB prevention, diagnosis, and treatment financial profile during the last two decades.MethodsOriginal research, reviews, and governmental databases are analyzed to present the financial profile of TB.ResultsAnalyzed data showed Europe (23137.133), Asia (20137.073), and Africa (15237.973) had the most allocated funds (US $ million), and Oceania (236.702), and America (4745.043) had the lowest allocated fund (US $ million) during 2006–2021. Additionally, the allocation of funds (domestic funds, global funds, and grants [excluding global funds]) in different countries and proper planning for TB eradication has caused that in the last two decades, the slope of the confirmed cases and deaths graph line is negative.ConclusionThe number of confirmed cases and deaths reported globally is decreasing. The trend lines showed that the assigned funds are increasing, indicating that the TB eradication plan can be apprehended soon.

DIRECTIONS OF CHANGES IN THE EXPENDITURE OF POLAND’S AGRICULTURAL BUDGET DURING THE PERIOD OF GOVERNMENTS OF SUBSEQUENT COALITIONS IN 2010-2023

The purpose of the article was to indicate the directions of changes that occurred in the expenditures of the Polish agricultural budget in 2010-2023 in quantitative terms. The period adopted for analysis is interesting in that it covers successive coalition governments in Poland. The subject of the study was budget expenditures on agriculture in Poland, broken down into expenditures from the national budget (excluding the Agricultural Social Insurance Fund – ASIF, and with it) and the Budget of European Measures (BEE), taking into account Poland’s total budget expenditures, as well as GDP. The source of empirical materials was data from the Ministry of Agriculture and Rural Development. An analysis of the structure and dynamics of nominal volumes, as well as those adjusted for inflation (CPI, constant prices of 2023), was applied. The research shows that during the period under analysis, there was a relatively persistent trend of real decrease in the level of total agricultural budget expenditures. The reduction in these expenditures concerned both the volume of domestic and EU funds. The relationship of the agricultural budget to the total budget and GDP also deteriorated significantly. This proves the declining importance of agriculture in the hierarchy of state budget expenditures in the long term and that the agricultural sector in Poland does not benefit proportionally from the effects of GDP growth. These unfavorable trends for agriculture have been somewhat halted in the last two years. If it were not for the financial support from the WBE (which, unfortunately, is also declining), sectoral disparities in the distribution of funds from national income would have grown even more pronounced. The rank of real expenditures on ASIF in the state budget expenditures is also successively decreasing.

The effects of institutional investors and their contestability on firm innovation: Evidence from Chinese listed firms

We investigate the effects of institutional investors and their contestability with controlling shareholders on firm innovation. Using a large sample of Chinese listed firms from 2003 to 2017, we find that when the ownership of domestic mutual funds is comparatively larger, their contestability with controlling shareholders is strengthened, which enhances business innovation. However, Qualified Foreign Institutional Investors do not have such significant contestability effects on firm innovation. These results are robust after correction for potential endogeneity issues. Furthermore, the effects of domestic mutual funds' contestability are weaker for short-term mutual funds and quasi-indexers, and for firms where the controlling ownership is higher. The effects of domestic mutual fund contestability are stronger in firms with less analyst coverage. Overall, our findings suggest that the influence of institutional investors is subject to their identities as well as their contestability with controlling shareholders.

Preliminary Ruling Requested from ECJ on Dividend Withholding Tax Due by UK Insurance Companies

In this note, the author comments on the recent request from the Court of Appeal of ‘s-Hertogenbosch for a preliminary ruling from the ECJ on the imposition of a 15% dividend withholding tax on dividend distributions to UK insurance companies on unit-linked policies in circumstances in which no withholding tax was due on payments to domestic pension funds.