Investment Funds Research Articles

Russian Experience in Legal Regulation of BRICS Investment Platforms

Aim. The article aims to formulate the problem of formation of such type of investment institutions as investment platform in BRICS.Tasks. The objectives of the article are defined by the fact that the executive director of the Russian Direct Investment Fund proposed to create a joint investment platform of BRICS countries, allowing BRICS members to invest more actively in the economies of their partners. And as is known, BRICS countries currently play a significant and constantly growing role in world politics and international relations. Methods. In the process of research the set tasks were solved by the author usin g general scientific (historical, dialectical, systemic, logical, method of analysis) and legal (comparative legal, sociological, axiological) research methods.Results. The result of the research is the proposal based on the Russian experience of regulation of platform services (financial platforms, investment platforms and information systems) on the formation on the basis of the Russian regulation model of the concept of building the corresponding institution within BRICS. At the same time, the article also draws attention to possible problems that may arise during the preparation of the relevant international act. In particular, the implementation of this initiative raises a wide range of technical, economic and legal issues that require detailed consideration.Conclusions. When choosing specific investment methods that can be used on such a platform, it is necessary to take into account the needs of businesses and the population, both in the long-term and short-term attraction and placement of resources. In particular, legal regulation of the choice of the legal regime for investment should influence the choice of the legal status of entities that will be admitted to such a platform, highlighting, for example, qualified investors or retail investors.

How Do Socially Responsible Investment Funds Go Green? The Influence of Investment Styles and managers' Experience

ABSTRACTWe provide an holdings‐based analysis of socially responsible investment (SRI hereafter) funds' greenness and its determinants in Europe over 8 years (2015–22). To this end, a segmentation of SRI funds by greenness degree based on k‐means clustering is developed. Our results reveal that SRI funds' greenness depends on specific investment styles and the salient experience of managers in SRI. We verify that greening an SRI fund implies a higher stock selectivity leading managers to underweight their portfolios with fossil fuel stocks and raise the weight of green stocks once SRI market regulations in Europe have been implemented. Also, we find that active investment styles make SRI funds greener. Moreover, we provide evidence of counteracting experience effects provided that the more (resp. less) the manager is experienced in SRI (resp. mutual fund industry), the greener the fund is. In addition to those experience effects, we detect a gender diversity effect provided that a greater gender diversity in fund management teams contributes to increase SRI funds' greenness. Overall, our findings support the argument that the experience and abilities of fund managers are important factors for investors to consider when they choose SRI funds notably because skilled professionals with more experience in SRI are more likely to adapt to regulatory shifts.

Tax Neutrality Treatment of Investment Funds in the European Union

This article examines the legal consequences and assesses the economic impact of the differing tax treatment of investment funds in Portugal, Germany and Luxembourg before and after the Allianzgi-Fonds landmark decision, by the CJEU. Before the Allianzgi-Fonds decision the Portuguese investment taxation discriminated against foreign investments by levying a withholding tax on foreign compared to domestic investments. The Allianzgi-Fonds decision prohibited this discriminatory treatment. Therefore, our article examines whether the Portuguese CIT exemption extended to non-resident UCITS will lead to tax neutrality treatment of investment funds in the EU. Overall, we confirm that the abolishment of the discriminatory withholding tax can considerably reduce the effective tax levels for cross-border investments. Moreover, the abolishment also diminishes the domestic investment bias. Nonetheless, the results do not confirm the achievement of neutrality.

Network analysis of aggregated money flows in stock markets

We introduce the formation of a network of money flows between assets in stock markets, which captures directed relations between assets in terms of how investors have re-allocated money in the stock exchange. Our approach is based on identifying a directed link, or money flow, that occurs when an investor funds a purchase of an asset by selling another asset(s). We extract investor-level money flow networks on daily basis from shareholder registration data, which are then aggregated for both financial institutional and retail investors. Overall, we have a time series of 877 daily networks from 2006 to 2009, which is exceptionally long data on temporal networks. Through our analysis of non-reciprocated triadic patterns in the aggregated money-flow networks, we find that these patterns are both recurrent and significant. However, they are not related to the 2008 financial crisis. Additionally, we observe that the counts on different triadic motifs exhibit not only an autoregressive process but are also interconnected contemporaneously and dynamically. These findings suggest the need for further research using sophisticated network models to provide a comprehensive representation of money flows in stock markets.

‘Smartness’ narratives: A critical discourse analysis of smart eldercare in urban China

AbstractThe rise of smart technology, endorsed by government institutions and recognised for its societal benefits and potential for urban management, has carved a niche for smart eldercare. However, discourses around smart care vary among stakeholders, leading to a constant (re)production of it. This paper investigates three overlapping and sometimes converging stakeholders' (governments, corporations and capital investors) discourses in defining ‘smart eldercare’, arguing that these discourses significantly influence the promotion, implementation and acceptance of smart eldercare in urban Chinese communities. Government entities view smart eldercare as an efficient tool for facilitating community‐based population governance and providing a social safety net. In contrast, eldercare corporations view smart eldercare as a powerful narrative to attract investment and secure government funding, while also serving as a means of surveilling in‐home care labour. For capital investors, eldercare stands out as a burgeoning and resilient sector, encompassing latent values that warrant careful consideration, especially during periods of economic downturn. Through the lens of discourse analysis, this study underscores the tensions between different discourses and the ways it produces ‘smartness’ in urban China. This paper advocates for understanding ‘smartness’ as a complex, multifaceted concept shaped by diverse stakeholder discourses and socio‐economic‐political contexts, necessitating flexible, context‐sensitive interpretations through discourse analysis. To advance ongoing debates in geography on smart care, smart cities and ageing, this paper reveals how these stakeholder discourses co‐produce the notion of ‘smartness’ in urban eldercare, while highlighting the socio‐political dynamics underlying technology‐driven governance in China.

INNOVATIVE STRATEGIES OF THE EUROPEAN UNION FOR THE ECONOMIC RECOVERY OF POST-CONFLICT REGIONS: PROSPECTS OF IMPLEMENTATION IN UKRAINE

The purpose of this article is to research innovative strategies of the European Union, which are aimed at the economic recovery of post-conflict regions, as well as to determine the possibilities of their adaptation for use in Ukraine. The relevance of the study is due to the fact that after the full-scale invasion of Russia on the territory of Ukraine, Donetsk, Luhansk, Kherson, Zaporizhzhya, etc. oblasts were under the terror of the occupiers, which negatively affected their residents, infrastructure and development of these territories. Their restoration requires the use of new approaches, including the introduction of innovative technologies and tools. The European Union has a lot of experience in this area, and its strategies can be useful for Ukraine in terms of accelerating the reconstruction process and creating favorable conditions for economic growth. The methods of system analysis, comparative analysis and the case study method were used to achieve the research goal. The systematic analysis made it possible to study a set of economic, social and political factors that influence the recovery of post-conflict regions, and the comparative method helped to determine the most effective European strategies that can be adapted to Ukrainian realities. The case study method made it possible to analyze in depth successful examples of the application of innovative strategies in EU countries, such as Croatia, Bosnia and Herzegovina, which is of great importance for the development of recommendations for the implementation of similar approaches in Ukraine. The results of the study show that innovative strategies play an important role in the reconstruction of post-conflict regions. The European Union has developed a number of tools for the reconstruction of destroyed territories, among which investments in digital transformation, development of small and medium-sized businesses, infrastructure restoration and introduction of "green" technologies occupy an important place. In particular, the European Structural and Investment Funds provide financial support to rebuild infrastructure and stimulate economic growth in conflict-affected regions. The «Horizon Europe» program also contributes to the financing of scientific research and the development of technological innovations, which can be extremely useful for the recovery of Ukraine. The practical value of the article lies in the development of a recommendation on the adaptation of innovative EU strategies for the reconstruction of the de-occupied territories of Ukraine. The implementation of these strategies can not only contribute to economic growth, but also help create new jobs, restore infrastructure and increase the investment attractiveness of regions. In addition, the introduction of "green" technologies and digital transformation can contribute to the sustainable development and integration of Ukrainian territories into the European economic system. An important aspect is also the development of human capital through educational programs and vocational retraining, which will ensure long-term growth and social stability in regions devastated by military actions.

How Does Shareholding by Passive Institutional Investors Impact the Corporate Governance of European Firms?

ABSTRACTResearch Question/IssueThe passive investment (PI) trend, characterized by the increasing inflow of investment funds into PI strategies, has resulted in an increase in the share of corporate ownership held via investments in PI strategies. This paper investigates this trend's consequential impact on European companies' corporate governance (CG).Research Findings/InsightsWe find that higher ownership by passive institutional investors (PIIs) is associated with fewer female directors, reduced independence in audit and nomination committees, and higher executive pay, negatively impacting CG. Nevertheless, our findings show that PIIs can increase the probability that a company has a policy regarding the adequate experience of board members and equal treatment of shareholders.Theoretical/Academic ImplicationsWe hypothesize that the level of ownership could be the missing link connecting mixed theories about the impact of ownership by PIIs on the CG of companies they invest in. A curvilinear relationship between the two could allow conflicting theories to coexist in one framework. We find weak evidence for a curvilinear relationship, but this relationship may become more prevalent if PII ownership of European companies increases because of regulatory changes.Practitioner/Policy ImplicationsSome critics have proposed limiting PII voting rights, but our findings suggest that the effect of PII ownership may become less negative beyond a certain level of ownership and that PIIs may play a positive role in enhancing board experience and shareholder equity policies. Restricting PIIs may not necessarily be beneficial for the CG of companies they invest in.

THEORETICAL ASPECTS OF GREEN FINANCING FOR PROVIDING SUSTAINABLE DEVELOPMENT

This article explores the theoretical foundations of green finance as a crucial tool for achieving sustainable development goals. Green finance supports environmentally friendly initiatives and projects that align with sustainability principles, particularly by providing funding for low-carbon projects and environmentally sound technologies. The article delves into the conceptual frameworks that underpin green finance and examines its connections with the economic, social, and environmental dimensions of sustainable development. It emphasizes the role that green finance plays in balancing economic growth with environmental stewardship and social well-being, thus contributing to a more sustainable global economy. The key instruments of green finance, including green bonds, sustainability-focused investment funds, and responsible financing mechanisms, are thoroughly analyzed to understand their significance in promoting sustainable economic growth. These tools not only facilitate the funding of eco-friendly projects but also help shift financial markets toward more responsible practices. In this context, the article emphasizes the pivotal role played by international financial institutions, governments, and the private sector in driving green investments and fostering an economy that is conscious of its environmental impact. Particular attention is given to policy frameworks and regulatory measures that can create favorable conditions for the expansion of green finance, such as tax incentives, subsidies, and environmental regulations that encourage sustainable investment. Moreover, the article addresses the challenges impeding the development of green finance. These challenges include scalability issues, market regulation difficulties, and the need for increased international cooperation. Overcoming these obstacles is essential to unlock the full potential of green finance and ensure that it can contribute effectively to global efforts in combating climate change. The article also explores the future prospects of green finance within the broader context of transitioning toward more sustainable economic models and identifies opportunities for innovation and growth in this sector. Finally, the article highlights international strategies and showcases successful examples of green projects from different countries around the world. These case studies provide insight into the positive impacts of green finance on economic stability and the reduction of carbon emissions, offering a clearer understanding of how green finance can play a central role in fostering long-term sustainability on a global scale.

Potential Tax Discrimination against Italian-Sourced Dividends and Capital Gains Received by Foreign Investment Funds Not Compliant with EU Regulatory Framework

This article delves into the complexities of cross-border taxation of Italian-sourced dividends and capital gains paid to Italian and foreign investment funds. More specifically, the authors scrutinize whether Italy’s current domestic tax laws violate the EU fundamental freedoms, particularly regarding foreign funds that, despite not being subject to the UCITS or AIFM Directives, are subject to a regulatory framework similar to that imposed on Italian funds.

Research on Quantitative Investment Strategies of Securities Investment Funds

This paper investigates the quantitative investment strategies of securities investment funds, aiming to explore their applications in financial markets and their impact on investment decision-making. Through a review of relevant literature and empirical data, the paper first outlines the basic concepts of quantitative investing and its importance in securities investment funds. Then, it discusses various quantitative strategies, including multi-factor models and machine learning algorithms, and validates their effectiveness through case studies. The research finds that quantitative investing can enhance the scientific and accurate nature of investment decisions while effectively reducing investment risks. Finally, the paper provides suggestions for optimizing quantitative strategies and discusses future trends, offering practical references for the investment industry.

Socially responsible investment funds and firm performance improvement

Socially responsible investment funds and firm performance improvement

Book Review: Hedged: How Private Investment Funds Helped Destroy American Newspapers and Undermine Democracy, by Margot Susca

Book Review: <i>Hedged: How Private Investment Funds Helped Destroy American Newspapers and Undermine Democracy</i>, by Margot Susca

The impact of big fund on the operational efficiency of semiconductor companies: Corporate social responsibility as a non-economic output

This study contributes to research on the total factor operational efficiency of the semiconductor company considering corporate social responsibility (CSR) by proposing a novel integer-valued nonparametric frontier method. This method adopts an endogenous directional distance function, which first selects the benchmark and then endogenously determines the directional vector. Avoiding the issue of non-integer slack adjustment increases the convenience of formulating incentive plans and calculating efficiency. We apply this method to the input–output data of 185 listed Chinese semiconductor companies from 2010 to 2022, considering integer-valued CSR as non-economic output. Global Malmquist productivity index analysis shows that the average total factor operational efficiency of companies that received investment from the National Integrated Circuit Industry Investment Fund (Big Fund) increased by 6.9%. Using the econometric technique, we verify that the total factor operational efficiency of semiconductor companies receiving Big Fund investment increased by 0.084 compared to those without Big Fund investment. Heterogeneity analysis showed that the effect of Big Fund was more significant in improving the total factor operational efficiency of state-owned, new, and non-integrated circuit semiconductor companies, implying the necessity of purposeful investment policies for the Big Fund.

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.

Pengaruh Keputusan Investasi, Keputusan Pendanaan dan Kebijakan Dividen Terhadap Nilai Perusahaan pada Perusahaan Sub Sektor Kesehatan yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2020-2022

This study aims to analyze the influence of Investment Decisions, Funding Decisions and Dividend Policies on Company Value in Health Sub-Sector Companies Listed on the Indonesia Stock Exchange for the 2020-2022 Period. This research is an associative quantitative research. Samples using purposive sampling techniques. The sample amounted to 11 companies from 31 health sub-sector companies listed on the Indonesia Stock Exchange for the 2020-2022 period. Multiple linear regression data analysis technique using SPSS 2022 for windows software. The data analysis used is normality test, heteroscedasticity test, autocorrelation test, multicolonicity test, multiple linear regression test, t test, f test and determination coefficient test. The results showed that Investment Decisions had an insignificant negative effect on company value, Funding Decisions had a positive insignificant effect on company value and Dividend Policy had a negative insignificant effect on company value.

Public-Private Partnership for Local Economic Development in the Kintampo Municipality of Ghana

Local governments are regarded as the primary stakeholders in Local Economic Development (LED) yet, they do not have adequate resources to execute their mandate (Ghana National Policy on PPP, 2011). Public-Private Partnership (PPP) presents a viable option for the delivery of local infrastructure and services for LED. The general objective of the study was to assess the contributions and opportunities of PPPs for LED in the Kintampo Municipal Assembly. A descriptive and exploratory study design was used for the study. According to the findings, the only documented PPP projects identified were public toilets and an enterprise development initiative with REP-BAC. There was another ‘loose’ arrangement of PPP between the KMA and the garages at the ‘magazine’. The PPP initiatives contributed to employment creation and income for the local people and internally generated funds for the KMA. Some identified projects were worth the consideration for investment under PPP e.g. Construction of a Lorry station under B.O.T/ Concession and the Upgrading of Kintampo Waterfalls under Concession. However, the low capacity of local partners to raise funds for investment, bad previous experiences of the KMA, poor service delivery by partners, and weak formalization processes by partners were challenging to PPPs in the Municipality. Despite the challenges, PPPs hold great potential for LED in the KMA. As such it is recommended that the KMA should increase awareness of the local people on PPP as an alternative strategy for funding projects for LED, create the enabling environment, and engage the necessary contractual instruments that commit both partners in all PPPs while maintaining proper documentation.

Live and let LIV? Sportswashing, Donald Trump, and attitudes toward the future of professional golf

ABSTRACT LIV Golf, a startup sports league financed by Saudi Arabia’s Public Investment Fund, has come under fire since its launch 3 years ago. Opponents argue that it constitutes ‘sportswashing’ (funding athletics to distract international audiences from problematic policy positions, especially regarding human rights). LIV’s ties to courses owned by Donald Trump have only added to the domestic and international scrutiny. What costs do such claims and connections impose on LIV’s present and future? An original survey experiment in which 497 American participants receive varying amounts of information on LIV reveals that learning about sportswashing accusations damages both LIV’s institutional reputation and position in the media and sporting marketplace. Those exposed to such claims found LIV to be significantly more problematic, more political, and more dangerous than those who read nothing about sportswashing. They were also significantly less likely to want media to report on LIV, want media to air LIV programming, and believe LIV had the right to even compete with the PGA Tour. Such findings constitute evidence of the challenges LIV must navigate and counter as it looks to take root and flourish. Ties to the former president, on the other hand, appear to have no negative impact.

ECONOMIC ASSESSMENT OF THE ACTIVITY OF RETAIL INVESTORS ON THE STOCK MARKET

The article examines the activity of a retail investor on the stock market. Issues of economic assessment of their activity and problems of increasing its effectiveness are studied. The dynamics of the share of retail investors in the total volume of trading in the stock market is analyzed. The key factors of growth of retail investors' activity in the stock market are studied. It was determined that the share of retail investors in the volume of trades on the stock market has almost doubled. The factors that caused such a powerful dynamic were analyzed. Two factors such as available investment opportunities and empowerment through information are discussed in detail. An economic assessment of the effectiveness of the activities of retail investors was carried out. The reasons for the negative results of their work on the stock market have been revealed. The importance of developing specific investment goals before starting investment activities on the stock market and adapting investment strategies to them is determined. It is suggested to use paper trading simulators that reproduce the real trading environment. It has been found to allow investors to make virtual trades and track their performance in real time. It is recommended to engage more comprehensive analytical and research platforms that provide tools for charting and price research. This has been proven to allow investors to more effectively analyze market trends, identify potential economic opportunities, and develop effective trading strategies. Possibilities of minimizing transaction costs through the use of ETFs-shares of investment funds, which are often traded on the stock exchange, are considered. As a result of the conducted research, the possibilities of further scientific research on this topic in the direction of using the latest financial programs based on artificial intelligence and comprehensive assessment of the interaction of various sectors of the stock market with their help were considered.

A shortage of funding or not enough healthcare projects?

The author, having worked in pharmaceuticals for several decades, has advised, in confidence, both investors and small to medium-sized enterprises on transitioning healthcare research projects into commercial development, mainly in Europe. He is now semi-retired. This note is written in the hope that his experience will improve the success of small and medium-sized enter-prises in their attempts to get non-academic investment funding and make life easier for investors. Whilst focused on drugs, the broader advice is relevant to other healthcare areas, such as diagnostics and devices.

Kingdom of Fintech: crowdfunding shaping the future in the kingdom of Saudi Arabia

Purpose This study aims to assess that whether Islamic real estate crowdfunding (RECF) can offer a compelling alternative investment that can attract substantial funds from traditional securities and other conventional methods or otherwise. Design/methodology/approach The current study draws on secondary data that was published on legitimate website, Twitter and official documents. Document analysis is conducted using the statements of privacy policy, Sharia compliance, terms and conditions disclosers and the established facts. Second, to achieve in-depth knowledge, a qualitative analysis was conducted for the published interviews and presentations with Aseel CEO Majed Abalkhail on YouTube. Thematic analysis is adapted; it is among the most popular types of analyzing qualitative data. Findings The findings show that the Aseel platform has been successful in providing simple access to investment opportunities by minimizing the obstacles, reducing entry and exit costs, streamlining the process and widening the investor’s base. Originality/value This paper seeks to contribute to the literature on crowdfunding, Islamic crowdfunding and RECF. Its objectives include exploring the concept of crowdfunding, its growth and various types. Furthermore, the paper aims to examine the expansion of the Islamic crowdfunding system, its current market position and a focus on the Saudi Arabian market. Lastly, the paper investigates the first RECF in Saudi Arabia, Aseel Company, which has achieved remarkable success with seven investment funds completed within its first year of establishment.