Fund Investment Research Articles

Climate policy regime change and mutual fund flows: Insights from the 2020 US election

President Biden campaigned and was elected on a bold “clean energy revolution,” a pledge that drastically reshaped expectations surrounding US climate policy. We study how mutual fund investors respond to this significant shift in environmental priorities. We find that low-carbon funds attract (or retain) $15 billion more investments than high-carbon funds during the three months after the 2020 election compared with the three months before. We also find that low-carbon funds underperform high-carbon funds by between 0.47 % and 0.89 % a month during the same period. These results indicate that Biden's election heightens climate transition risk awareness, prompting investors to hedge this risk by investing more in low-carbon funds and receiving lower returns. The flow effect is more pronounced among retail investors, emphasizing their increased recognition of climate transition risk. We also uncover an interesting clientele effect: investors in low-carbon funds consider continuous carbon risk measures, whereas investors in high-carbon funds do not. Furthermore, our analysis of a US-only fund sample reveals that sensitivity to climate risk is insignificant in 2018 after Morningstar first published low-carbon metrics (unlike Ceccarelli, Ramelli, & Wagner, 2024) but becomes particularly significant following the 2020 election.

Taking matters into their own hands: How Investors' stock preferences affect mutual fund flows in China

We examine the impact of investors' stock preferences in mutual funds' portfolios on fund flows in China. Our results indicate that mutual funds with an investment style consistent with individual investors' stock preferences have higher fund flow. We find that it affects only individual investors' fund flow, not institutional investors' fund flow. This impact is greater during periods of low economic policy uncertainty or high investor sentiment. Moreover, this impact is reduced with larger fund size or longer fund age. The reasonable explanation is that investors infer fund managers' skills by analyzing the stocks in the fund's portfolio. This explanation is further validated by the results using index funds as the control group. Our findings challenge the assumption that mutual fund investors fully delegate decisions to professionals. Further analysis reveals there is no significant correlation between these preferences and future returns. Our findings contribute to the study of mutual fund investor behavior from a fresh perspective.

Understanding Mutual Funds Performance with mediation of Human Capital and GDP-Growth in Pakistan Mutual Funds: Demonstration of Structural Equation Model

This work sheds light on the complex interplay between mutual fund performance, using human capital, and GDP growth as mediating variables in Pakistan through the lens of Structural Equation Modeling. By employing this sophisticated analytical approach, the findings uncovered nuanced nexus that traditional methods might have overlooked. The findings underscore the critical role of GDP-Growth and human capital as a mediating factor, suggesting that investments in mutual funds could have far-reaching effects on the financial performance on individual investors. Moreover, the demonstrated link between GDP-growth and mutual fund outcomes highlights the intricate web of economic factors influencing investment landscapes. Our findings thus reveal that the impact of the market factor and GDP growth on portfolio returns shows statistically significant estimates both mediation models. However, size-factor shows two portfolios significant while two portfolios insignificant results using both mediating variables. However, the value factor shows highly significant in both mediating models but reveal insignificant nexus with HC-Growth as mediating variable using only FF3FM. Moreover, momentum factor shows insignificant results for both mediating models. As Pakistan continues to develop its mutual fund market, policymakers and fund managers alike would do well to consider these interconnections in their decision-making processes.

In Search of Systemic Impact: The Cooperative Assistance Fund and Program-Related Investments

Abstract Scholars investigate philanthropy’s ability to effect change but pay less attention to strategies changing practices within the philanthropic sector. The Cooperative Assistance Fund (CAF) pioneered program-related investments (PRIs) as a philanthropic strategy that merged commercial and philanthropic logics, thus moving beyond traditional grantmaking practices. Adopting an institutional work perspective, the study describes the types of institutional work that promote a new philanthropic model. Historical evidence shows that CAF’s leadership reframed philanthropic approaches (framing work) and developed strategies influencing policy (political work), promoting PRIs (cultural work), and supporting interested foundations (technical work), but failed to develop a clear identity around these strategies (internal practice work). Taking advantage of historical methods, the study historically embeds the diverse types of institutional work that were employed, showing how these practices were often more reactive than proactive. The study contributes to our understanding of PRIs in linking their limited use to tensions between different institutional logics, while paradoxically contributing to the establishment of market-based approaches.

Enhancing Chinese Pension Funds Development through ESG Investment Perspectives

In current China, where the pension funds system is facing enormous pressure, this article will explore the positive impact of incorporating ESG investments into the Chinese pension funds system on its future development. Through research on the current situation of China's pension system, it is found that there are problems such as uneven regional distribution, unbalanced development of the three pillars, high population pressure and funding gap, high investment return requirements, and limited investment channels. By studying the feasible experiences of top ESG investment companies and leading countries in development, it is concluded that ESG investment contributes to improving the return on investment and stability of pension funds, and can alleviate the existing problems in China's pension funds. Finally, it is summarized that the feasible experience of combining ESG investment with China's pension funds is to take the lead in policies first, combined with strict supervision, and pay attention to talent cultivation.

57 Nature based social prescribing for enhancing mental health and well-being

Abstract Objectives Nature Based Social Prescribing (NBSP) is a means of connecting people with non-clinical, nature-based community-led interventions delivered by 3rd sector organisations using local community assets. This research used a mixed-method Social Return on Investment (SROI) of a six-month pilot ‘Making Well’ NBSP programme to support individuals with chronic mental health conditions in Wales. Methods The ‘Making Well’ programme costs were estimated by means of SROI along projected 20% overheads, were incorporated to reflect sustainable costs as the charity develops and more accurately estimate the future social value expected to be generated. The ‘Making Well’ project delivered two separate programmes between October 2021 and April 2022. Data was collected from participants (n = 12) at baseline and eight-week follow-up along with interviews to collect in-depth data on individuals lived experience of participating in the programme. The ‘Making Well’ programme costs were estimated and financial proxies from the HACT Social Value (SV) bank were applied to identified benefits. Results The estimated cost of ‘Making Well’ programme inputs were £1,312 per participant and the net value of well-being benefits were £4,313 to £6,130 per participant, giving a range of SVR’s between £3.30 to £4.70 for every £1 invested in this NBSP intervention. The SROI forecast provides a three-year projection of the annual social value created and the estimated forecast cost of programme inputs was £797 per participant. The net value of well-being benefits was £4,313 to £6,130 per participant, giving a range of social value ratios between £5.40 to £7.70 for every £1 invested. Conclusions The SROI results demonstrate that the ‘Making Well’ programme is an effective NBSP intervention for supporting people with enduring mild to moderate mental health conditions. This SROI contributes to emerging evidence on the use of community assets and NBSP in generating a return on investment and positive social value. SROI forecasting for socially prescribed interventions delivered by local community assets, such as The Fathom Trust, can help organisations demonstrate transparent and effective investment of public funds and support optimal future social value creation and long-term public health outcomes.

The Impact of Policies Regulating the Development of Private Equity on the Growth of Investment Firms

In the current economic environment, there are many kinds of private investment. The importance of how to ensure that investment companies operate rationally and invest successfully, regulate investment behavior and private equity fund managers of investment companies is becoming more and more apparent. Stable and reasonable regulatory policies are conducive to the promotion of improved profitability of investment companies and the long-term stable development of the capital market, among which the promulgation of the Regulations on Supervision and Administration of Private Investment Funds (the "Regulations") has had a profound impact on the growth of investment companies. This paper focuses on the positive and negative impacts of the Regulations on the growth of companies, and selects representative companies in the capital market services for comparative analysis. The results of the study show that the promulgation of the Regulations further regulates the development of the private equity fund industry, making investors more cautious in their decision-making, and thus promotes the development of the growth of private equity fund investment companies.

Can Green Credit Policies Promote Fund Investment? Evidence from China

Fund investment, as a type of financial investment in the capital market, is designed to attract more social capital towards the green environmental protection sector and foster a harmonious relationship between economic development, social advancement, and ecological conservation. Therefore, as a significant policy instrument, will implementing the green credit policy impact the investment preferences of fund investors? How does it influence their participation in the market? This study utilizes microdata from Chinese Shanghai and Shenzhen A-share-listed companies from 2004 to 2020 to establish a DID model based on the Green Credit Guidelines introduced in 2012. The research delves into the effects of the green credit policy on fund investment and its underlying mechanisms. The green credit policy was found to favor the entry of fund investment, and the results are still valid after a series of robustness tests. The attraction effect of the green credit policy on investors is more evident in non-state-owned enterprises, small and micro enterprises, and non-green industries. Green credit policy can positively influence investor entry through the financing constraint effect and productivity effect. The study theoretically supplements the literature in the field of evaluating the effect of the green credit policy, and practically provides practical guidance and inspiration for strengthening the synergy of the government, banks, and enterprises in implementing green credit policy, promoting industrial transformation, and upgrading, and realizing high-quality economic development.

ESG Disclosures in the Private Equity Industry

ABSTRACTThis paper offers the first systematic evidence on environmental, social, and governance (ESG) disclosures provided by a large global sample of private equity (PE) firms. Using historical websites from 2000 to 2022, we develop and validate a novel dictionary‐based measure of voluntary PE firm ESG disclosures. Descriptive statistics reveal an increasing time trend in these disclosures, with social topics becoming as important as environmental topics recently. Multivariate analyses show that the demand for ESG information from fund investors is a significant determinant of PE firms’ ESG disclosures. Leveraging data on PE firms’ portfolio companies, we document that more PE firm ESG disclosures are associated with better ESG outcomes at the portfolio company level, suggesting that voluntary ESG disclosures align with real actions for the average PE firm.

The The Influence Of Funding And Investment Decision On The Value Of Companies Listed On Indonesian Stock Exchange (IDX)

Company value is one of the determining aspects before investors decide to invest funds in a company. The increase in company value from year to year is the company's achievement in running its business. The aim of this research is to determine the simultaneous and partial relationship between funding decisions and investment decisions on the value of companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The data collection techniques in this research are documentation and literature study methods. The analysis of this research is multiple linear regression using SPSS 26 as a statistical test tool. The result in this research are there is no simultaneous influence between funding decisions and investment decisions on company value, there is a partial influence between funding decisions on company value, and there is no partial influence between investment decisions on company value. By optimizing funding decisions and investment decisions, company value will be able to increase.

A Study on Mutual Fund Investors Awareness Regarding Factsheet of the Scheme

Mutual fund is an investment tool, getting popular day by day. Indian Mutual fund industry manage Rs. 64.71 trillion in July 2024 an increase of about 40% from July 2023. Individual investors hold 61.0% of overall Assets under Management in July 2024. Fact sheet of scheme depict performance of mutual fund scheme. Awareness of individual investors regarding contents of fact sheets is highly desirable and this awareness level is found out in a small group for getting information and suggesting appropriate action. Key Words: Mutual fund, Investors, Awareness, Factsheet

Margin Rules and Margin Trading: Past, Present, and Implications

AbstractMargin—collateral or funds that investors deposit with their counterparties—is a crucial component of the practice of borrowing money to fund investment. While margin offers the potential for enhanced returns, it also exposes investors to the risk of escalated losses, thereby necessitating stringent regulatory oversight. Delving into the regulatory framework governing margin trading, we provide historical insights into the origins and dynamics of various margin requirements, and we review academic studies that illuminate the implications of these regulations for asset pricing, financial stability, and the design of margin rules. With an eye to the future, we also outline recent advancements in the evolving landscape of margin rules, such as portfolio margin and central clearing.

PREDIKSI HARGA SAHAM BERDASARKAN ROA, ROE, PBV, DER, EPS DAN PER MENGGUNAKAN MACHINE LEARNING

Stocks are one of the popular investment instruments in Indonesia, but they also come with high risks. According to a report from PT Central Securities Depository Indonesia (KSEI) on November 21, 2022, the number of investors in the Indonesian capital market has reached 10 million people, followed by 9.3 million mutual fund investors and 803 thousand investors in government securities. Therefore, a method is needed to accurately predict stock prices. This research aims to apply a Machine Learning method based on Recurrent Neural Network (RNN) to predict stock prices on the Indonesia Stock Exchange (IDX) using financial ratio variables as features. The study uses stock data on the IDX from the Kompas100 stock index from 2008 to 2022. The data is then converted, cleaned, and divided into training and testing data. The model is trained with the training data and tested with the testing data. To measure the model's performance, this research uses the Root Mean Square Error (RMSE) metric. The study finds that the best-performing model produces an RMSE of 14.08. Additionally, the research also discovers that the best combination of financial ratio variables for the machine learning model includes ROA, ROE, PBV, DER, EPS, and PER, compared to combinations such as EPS, ROE, PER, and DER, or ROA, ROE, EPS, and PBV. In conclusion, this study suggests that the Machine Learning method based on RNN can be used to predict stock prices on the IDX using financial ratio variables as features.

Поиск российской национальной идеи как фактор современной государственной молодёжной политики

This article is devoted to the analysis of one of the key problems of the strategy of modern Russian state youth policy. This is the problem of sustainable dominance in youth policy of the motives of state charity (systematic investments of budget funds in solving current problems of youth, in general, or of individual groups) over the motives of national-state interest (ensuring the sovereignty and security of the country, solving the problems of its economic development) throughout the post-Soviet era and up to the present day. The long and intensive search for the Russian national idea during this period did not significantly affect the structure of motives for cooperation between the state and its young citizens in issues of upbringing, education, professional guidance and value choice. The author sees the reason that youth policy ideologically developed on its own and the search for a national idea did not fill it with any fundamentally new meanings in specific technology of such searches as political technology. The specificity reveals itself in the fact that the search was aimed at maximizing the improvement of the theoretical doctrine, designed to become a new Russian national idea, at giving it original form and content. At the same time, issues of applying such a theoretical doctrine to solve practical problems of internal Russian social policy and, in particular, state youth policy were excluded from the discussion. Today there is a turn in Russian politics: institutions and practices common to liberal democracies are increasingly filled with a conservative-patriotic meaning. The resumption, in this regard, of the search for the Russian national idea may repeat the fate of previous experiments in this direction. In this case, the motives of youth policy do not form a significant connection with national-state interests and the prospect of bringing it through the efforts of its subjects to some qualitatively new level will once again be postponed indefinitely.

Who is greener, more social and better-governed? Dual ownership by SRI mutual funds stands out

This study sheds new light on ESG performance and financial characteristics of companies that are constituents of portfolios of U.S. socially responsible investing (SRI) funds. We categorize SRI fund participation into three distinct types: debt-only, equity-only, and dual ownership of debt and equity. Companies with dual ownership tend to be held by relatively bigger and more concentrated SRI funds. Our holdings-based analysis reveals that these investee companies deliver superior ESG performance across all dimensions and have larger size, higher degree of financial safety, and higher profitability compared to those in equity-only or debt-only categories.

Evaluating Research Activity and NIH-Funding Among Academic Ophthalmologists Using Relative Citation Ratio

ABSTRACT Purpose The objective of this study was to evaluate the relationship between research activity and National Institutes of Health (NIH) funding status of the United States (US) academic ophthalmologists. Methods A retrospective cross-sectional analysis of bibliometric data was conducted. The NIH Research Portfolio Online Reporting Tools Expenditures and Reports (rePORTER) website was utilized to identify ophthalmology departments in the US that received NIH funding. Affiliated faculty from these institutions were then identified using NIH rePORTER and institutional websites. H-index was calculated using the Scopus database, and the NIH iCite tool was used to determine the Relative Citation Ratio (RCR). The h-index and w-RCR quantified research productivity, while m-RCR measured research impact. Results Data on 2688 faculty members from 66 departments we re identified, of which 21% were NIH-funded. Faculty members who received NIH-funding had significantly greater research productivity and impact as measured by h-index (32.5 vs 16.6; p < .001), m-RCR (2.2 vs 1.6; p < .001), and w-RCR (147.2 vs 70.1; p < .001) than their non-funded peers. When stratified by academic rank, NIH-funded faculty still had significantly higher h-index (16.1 vs 7.9; p < .001), m-RCR (2.2 vs 1.4; p < .001), and w-RCR (63.2 vs 61.8; p < .001) than non-funded peers. A similar trend was observed among non-tenured faculty members. Conclusion NIH funding is associated with higher research productivity and impact among US academic ophthalmologists as measured by h-index and RCR, which suggests that NIH funding may be a critical factor in enhancing scholarly contributions of ophthalmologists. These findings underscore the importance of continued investment in NIH funding to foster high-impact research within the field of ophthalmology.

Optimal consumption and investment in pooled annuity funds with and without fund managers

In this paper, we study two schemes of pooled annuity funds: pools with and without fund managers. In the pool without managers, there are no artificial rules or management cost and we introduce Nash equilibrium to depict the simultaneous non-cooperative game among participants. Given others' strategies, participants choose optimal consumption and investment strategies to maximize their own utility. In the pool with managers, the fund manager makes artificial rules for consumption and investment, ensuring cooperation among participants. The manager then determines optimal consumption withdrawal and investment strategies to maximize the total utility of all participants. By using variational methods and recursive algorithms, semi-analytical solutions in both pools are obtained. Due to prisoner's dilemma, larger pools without managers induce more intense competition in consumption and reduce utility. Thus, there exists an optimal pool size and only homogeneous participants form the pool. Meanwhile, larger pools with managers diversify investment and longevity risks more sufficiently and the subsidy effect among participants is mitigated. Therefore, the perfect pool with infinite participants is recommended as the optimal pool. Moreover, the preference between the two optimal pools depends on risk aversion degree, management cost and flexibility in selecting the strategies.

Serial mediation effect of service innovation and word of mouth on mutual fund investment decision through mobile customer relationship management

Purpose The purpose of this paper is to examine the effect of mobile customer relationship management (mCRM), service innovation (SI) and word of mouth (WOM) on the investment decisions (IDs) of mutual fund investors. Design/methodology/approach This paper presents a new model for impacting the IDs of mutual fund investors. To verify the suggested model, Partial Least Squares with Structural Equation Modelling are used. For analysis, a survey questionnaire is designed, and data inputs were invited from more than 400 online mutual fund investors in Delhi NCR. Findings The outcomes reveal that the ID of mutual fund investors is significantly influenced by WOM. WOM, in turn, is significantly impacted by mCRM applications through SI playing a mediating role. Research limitations/implications The limitation with reference to survey respondents was that only online mutual fund investors using mCRM applications were considered. Moreover, this study was conducted in Delhi NRC, and a limited sample was considered. Practical implications The result from this research helps the financial organisation to consider SI in their mCRM application as one of the main concerned areas for increased WOM that directly influences the ID of mutual fund investors. Originality/value This study highlighted the impact of SI and WOM on the mutual fund investors’ decision, who use mCRM application. The outcome may contribute to the theoretical framework of IDs concerning mCRM applications. The results of this research offer practical implications for financial organisations in strategising their marketing and product development plans in the context of mutual funds. Also, the mutual fund ID through mCRM application is positively influenced by SI and WOM using both constructs as sequential mediating tools. This research offers new insights into mCRM application for mutual fund investors and financial organisations in India.

Mutual fund investment performance: Indonesia Sharia stock index as characteristics moderating model

Purpose – This study investigates how the Sharia stock price index influences the relationship between various factors, such as the expense ratio, portfolio turnover ratio, cash ratio, age, size, and characteristics of Sharia mutual funds, and their overall performance. Methodology – This study employed a quantitative descriptive research method to analyze 316 populations. Purposive sampling was used to obtain a total of 51 samples. We used research tools for data collection and SMART PLS 4 statistical software to analyze the collected data. Findings – The characteristics of ISSI-moderated mutual funds have a significant positive effect on the performance of Sharia mutual funds. To achieve better performance, investment managers must incur high costs in implementing active strategies. The more active the investment manager is in trading by looking at existing opportunities, the better the performance of the Sharia Mutual Funds. Implications – The implications of this research indicate that the movement of the Sharia stock price index can strengthen the positive causal relationship between several characteristics of Sharia mutual funds. The effects of Sharia mutual fund portfolio instruments, including shares, bonds, and deposits from the Sharia banking industry, also contribute to improving the performance of Sharia mutual funds in Indonesia.Originality – This study investigates the moderating role of the Sharia stock price index on several characteristics of Sharia mutual funds, including the expense ratio, portfolio turnover ratio, cash ratio, age of the mutual funds, and size of the mutual funds, in relation to their performance.

Determinants of Investment Decisions of Mutual Fund in Nepal

Mutual funds in Nepal are financial vehicles that pool money from multiple investors to invest in diversified portfolios of securities, managed by professional fund managers. They play a crucial role in mobilizing savings and providing access to diversified investment opportunities for Nepalese investors. This study examines the factors influencing investment decisions in mutual funds in Nepal, focusing particularly on financial literacy, risk perception, investment behavior, and peer group influence. To achieve the stated objective, data were collected from the primary source using a structured questionnaire administered through convenience sampling technique. The respondents comprised 204 individual investors of mutual funds inside the Kathmandu Valley. The Smart PLS 4.0 was used to analyze the structural relationships within the proposed theoretical model. The findings of this study validated the set hypotheses that financial literacy, risk perception and investment behaviour have positive and significant effect on investment decisions among the investors in Nepalese mutual funds but the peer group has no any effect on investment decision. These results underscore the importance of targeted financial education programs and tailored investment strategies that enhance individual investor knowledge and understanding, thereby fostering more informed and independent investment decisions in Nepal's mutual fund market. The results may encourage to promote financial literacy through educational programs and integrating it into national curricula can empower investors to make informed decisions in Nepalese context.