Investment Funds Research Articles

Світовий досвід покращення багаторівневої координації управління державними інвестиціями для забезпечення їхньої ефективності

The issue of improving the multi-level coordination of the management of public investments to ensure their efficiency is especially relevant for Ukraine, as its effective mechanisms maximize the return on investment for regional development. Ukraine will need significant public investment to recover from the destruction caused during the Russian-Ukrainian war, and these investments are (and will be) the driving force behind the recovery of the domestic economy. In conditions when investment opportunities and investment funds are limited, the question arises of their rational use and direction to achieve prioritized tasks. Taking into account the fact that the implementation of public investments is a long process with a wide range of persons involved, the issue of the efficiency of multi-level coordination of public investment management becomes especially acute. The experience of different countries, and especially the members of the Organization for Economic Cooperation and Development (OECD) in the field of establishing effective multi-level coordination of authorities at different levels, needs to be highlighted and taken into account in domestic practice. The theoretical and methodological basis of the study is a number of OECD materials, as well as scientific works of foreign and Ukrainian scholars. The article summarizes the experience of OECD member countries (both positive and negative) in the field of multilevel management. Emphasis is placed on the first pillar of the OECD Recommendation and the three principles it incorporates, in particular, the use of an integrated strategy adapted to local characteristics, the introduction of effective coordination instruments and horizontal coordination. Among the best implementation practices are the examples of the European Union, Japan, New Zealand, Australia, Austria, Canada, France, the United Kingdom, Turkey, Luxembourg and Switzerland. A number of steps towards improving the multi-level coordination of the management of public investments in Ukraine to ensure their efficiency have been proposed.

Assessing the Relationship between Radiology Department Research Funding and Institutional Community Inclusion and Investment.

Background Health care access disparities and lack of inclusion in clinical research have been well documented for marginalized populations. However, few studies exist examining the research funding of institutions that serve historically underserved groups. Purpose To assess the relationship between research funding awarded to radiology departments by the National Institutes of Health (NIH) and Lown Institute Hospitals Index rankings for inclusivity and community benefit. Materials and Methods This retrospective study included radiology departments awarded funding from the NIH between 2017 and 2021. The 2021 Lown Institute Hospitals Index rankings for inclusivity and community benefit were examined. The inclusivity metric measures how similar a hospital's patient population is to the surrounding community in terms of income, race and ethnicity, and education level. The community benefit metric measures charity care spending, Medicaid as a proportion of patient revenue, and other community benefit spending. Linear regression and Pearson correlation coefficients (r values) were used to evaluate the relationship between aggregate NIH radiology department research funding and measures of inclusivity and community benefit. Results Seventy-five radiology departments that received NIH funding ranging from $195 000 to $216 879 079 were included. A negative correlation was observed between the amount of radiology department research funding received and institutional rankings for serving patients from racial and/or ethnic minorities (r = -0.34; P < .001), patients with low income (r = -0.44; P < .001), and patients with lower levels of education (r = -0.46; P < .001). No correlation was observed between the amount of radiology department research funding and institutional rankings for charity care spending (r = -0.19; P = .06), community investment (r = -0.04; P = .68), and Medicaid as a proportion of patient revenue (r = -0.10; P = .22). Conclusion Radiology departments that received more NIH research funding were less likely to serve patients from racial and/or ethnic minorities and patients who had low income or lower levels of education. © RSNA, 2024 See also the editorial by Mehta and Rosen in this issue.

Methodological approaches to analyzing cash funds of enterprises

Conducting economic activities without attracting cash funds is not possible, as money plays a direct role in a variety of enterprise operations, whether it's paying rent, and salaries, providing the enterprise with fixed assets, purchasing raw materials, distributing dividends to shareholders, or paying for construction and installation work. The success of a business entity's activities and its ability to finance current operations while timely repaying debts to creditors and accumulating funds for further investment in production expansion depend on the balanced size of cash inflows and outflows. Therefore, the analysis of cash funds is an important component of economic analysis at every enterprise, aimed at finding ways to optimize based on evaluating the sufficiency of formation, effectiveness of application, as well as the balance of inbound and outbound cash flows. This article identifies the stages of analyzing the existing cash flows of a business entity and clarifies the information base used during its implementation. Relative liquidity indicators have gained the widest use among financial condition indicators. The article provides a characterization of liquidity indicators and summarizes scholars' views on determining their normative values. It is proven that the main difficulties arise during the interpretation of the analysis results, as there are no uniform standards even for liquidity ratios in economic literature, which leads to ambiguity in assessing the level of cash management success and their sufficiency to ensure the company's solvency. It is noted that achieving a balance between positive and negative cash flows is one of the main directions of optimizing cash flow. The article describes the composition of indicators characterizing the state and effectiveness of cash flow formation and the efficiency of cash fund utilization. It is emphasized that a reasoned and comprehensive economic analysis of cash funds creates conditions for rational cash management, as it helps to track key development trends of the enterprise, identify the main factors influencing it, and make further forecasts.

Устойчивые инвестиции и дивестиции институциональных инвесторов глобального уровня

The article analyzes the investment activity of sustainable institutional investors after the global financial and economic crisis of 2008. The relevance of the study is conditioned, firstly, by the leading positions of institutional investors in the global financial market and in the system of international finance; secondly, by the special role of mutual funds and ETFs in the global market of sustainable finance; thirdly, by the noticeable dynamics of investments by these market participants in recent years, which increasingly turns into divestments. The purpose of the study is to identify current trends in sustainable investment by global institutional investors and formulate their further actions in the short term. To do this, it is necessary to solve the following tasks: to clarify, taking into account the latest statistical data, the impact of the COVID-19 pandemic and other force majeure factors on the size and dynamics of the flow of funds of sustainable institutional investors in the leading countries of the world, and to assess the impact on investment prospects of current political and financial factors. In the course of the study, a significant amount of scientific research was analyzed, which served as a basis for identifying the institutional investors’ approaches to sustainable finance. It is concluded that the prospects for global sustainable investing are favorable due to the continued stimulation of environmental change at the supranational level, both in developed and leading developing countries. The financial success of sustainable investment will also contribute to this.

Design of Single Valued Neutrosophic Hypersoft Set VIKOR Method for Hedge Fund Return Prediction

The theory of neutrosophic hypersoft set (NHSS) is an appropriate extension of the neutrosophic soft set to precisely measure the uncertainty, anxiety, and deficiencies in decision-making and is a parameterized family that handles sub-attributes of the parameters. In contrast to recent studies, NHSS could accommodate more uncertainty, which is the essential procedures to describe fuzzy data in the decision-making method. Hedge funds are financial funds, finance institutions that increase funds from stockholders and accomplish them. Usually, they try to make certain predictions and work with the time sequence dataset. A hedge fund is heterogeneous in its investment strategies and invests in a different resource class with various return features. Furthermore, hedge fund strategy is idiosyncratic and proprietary to the hedge fund manager, and the correct skills of fund managers are not visible to the stockholders. These reasons, united, make hedge fund selection a complex task for the stockholders. Different techniques have been analyzed to select the portfolio of hedge funds for investment. Machine-learning (ML) models employed used for performing individual hedge fund selection within hedge fund style classifications and forecasting hedge fund returns. Therefore, this study designs a new Single Valued Neutrosophic Hypersoft Set VIKOR Model for Hedge Fund Return Prediction (SVNHSS-HFRP) technique. The presented SVNHSS-HFRP technique aims to forecast the hedge fund returns proficiently. In the SVNHSS-HFRP technique, two stages of operations are involved. At the initial stage, the SVNHSS-HFRP technique, the SVNHSS is used for forecasting the hedge funds. Next, in the second stage, the moth flame optimization (MFO) system is applied to optimally choose the parameter values of the SVNHSS model. The performance validation of the SVNHSS-HFRP model is verified on a benchmark dataset. The experimental values highlighted that the SVNHSS-HFRP technique reaches better performance than existing techniques

Transformation of approaches to mineral resource auditing for augmentation of Russia’s wealth in the current political situation

Background. The mineral resource base is a strategic component of Russia’s economic security and a critical tool for strengthening the country’s position in the international arena. At the same time, economic turmoil and geopolitical tensions negatively affect the quality of resource auditing in the oil and gas and other extractive industries of the Russian Federation. This have an effect on the investment attractiveness of exploration projects, which are highly important for the continuous reproduction of the country’s mineral resource base.Aim and objectives. In order to consider the potential of mineral resource auditing for augmentation of Russia’s wealth, the following objectives were undertaken: 1) to analyze the structure and state of audit methods in Russian extractive industries; 2) to study the prospects and possibilities of applying international experience in auditing Russian extractive industries; 3) to apply new tools and approaches to optimize auditing activities in the domestic practice.Materials and methods. Both domestic and foreign research publications were reviewed, along with the reports of the Ministry of Natural Resources and the Environment of the Russian Federation and the Federal Subsoil Resources Management Agency, analytical materials and audit guides by CAAF, INTOSAI, and AFROSAI-E McKinsey. A set of general scientific and special methods Y were used: forecasting methods to assess the state and prospects of financing geological exploration in the Russian Federation; methods of comparative analysis and synthesis, induction and deduction to study the international experience of auditing in the extractive industry.Results. It is proposed to attract financial resources at various stages of geological exploration through the creation of special-purpose direct investment funds. Attention is also paid to such methods as streaming and acquisition of fixed profit margins from production activities in exchange for an advance payment, which can be applied at later stages of geological exploration.Conclusion. In order to attract investments for geological exploration of subsoil resources, Russian companies should apply new tools and approaches, as well as international best practices. In combination, this will facilitate the process of attracting funds alternative to budgetary resources, thereby diversifying the methods of financial support, and will increase the investment attractiveness of the Russian geological industry.

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.

Cross-border distribution of investment funds

Cross-border distribution of investment funds

ПРИНЯТИЕ ИНВЕСТИЦИОННОГО РЕШЕНИЯ (НА ПРИМЕРЕ ОРГАНИЗАЦИЙ МАШИНОСТРОЕНИЯ)

An investment decision involves a decision on the expediency of investing investment funds with future income for investment investments that can be characterized by the expected profitability of own funds. The article considers a mechanism for making an investment decision based on the curve of dependence of the expected profitability of own funds and the investor’s risk.

МОНІТОРИНГ СУЧАСНОГО СТАНУ ФОНДОВОГО РИНКУ УКРАЇНИ

The article monitors the stock market of Ukraine in the period 2019–2023. The definition of the concept of “stock market” is considered. Analyzed different periods, both before the full-scale invasion and during the war. The stock market in any country in the world is characterized by the number of issued financial instruments by business entities. It is also characterized by the volume of exchange trading in these instruments. The stock market is an indicator of the state of the country’s economy. It also performs specific functions in the financial policy of the country. Its development and increase in functionality is a priority task of the government. The development of the stock market of our country is based on the experience of the developed countries of the world. It should be noted that the stock market of our country is at the stage of formation, based on the volume and number of financial instruments with which operations are carried out on the market. Based on the MSCI classification, the stock market of our country belongs to the least developed category. This is due to certain restrictions introduced by the NBU for foreign investors, as well as their failure to perform their main functions properly. It is clear that the full-scale invasion of the Russian Federation, which took place in February 2022, had a negative impact on the capital market of our country. Based on the information provided by the National Commission for Securities and the Stock Market (NCSCFR) for the analyzed period, it is gradually recovering despite the hostilities taking place on the territory of our state. Thus, in comparison with 2019, in 2023, the volume and number of bond issues registered by NKCPFR increased, the volume of investment certificates of mutual investment funds increased, and the volume of exchange contracts with securities on domestic trading platforms increased. Transactions on exchange contracts with securities in most cases take place on the stock exchanges “Perespektiva” and PFTS. Positive developments are observed in all segments of the stock market. But it should be noted that in terms of trading instruments, the stock market of Ukraine has a low level of development. Full recovery and development of the capital market of our country is possible only after the end of the war.

Seizing the future: State-owned investment funding for the new era

Seizing the future: State-owned investment funding for the new era

Alternative Investment Funds: The New Age of Investments or Just Another Bogus Scheme

Alternative Investment Funds: The New Age of Investments or Just Another Bogus Scheme

Towards the Establishment of a Mineral Resource Fund in Ghana: A Critical Review of the Minerals Income Investment Fund in Ghana

Towards the Establishment of a Mineral Resource Fund in Ghana: A Critical Review of the Minerals Income Investment Fund in Ghana

Valuation of Real Estate Investment Trusts using the PSI-CoCoSo Multicriteria Method

In recent years, we can observe the growth in the number of investors in the financial market. This work seeks to improve the decision-making process in real estate investment funds (Brazilian REITs). To this end, a literature review was carried out in the Scopus database using bibliometrix to analyze the applications of the multicriteria decision aid (MCDA) in the environment of Brazilian REITs, as a result, it was possible to analyze a greater approach to studies on the toma in Australia, the United Kingdom, the United States, and China. The study was promising because it opens new possibilities of approach and opportunities to cover applications, seeking to explore and use MCDA methods to provide support at all stages of the decision-making process. The literature review was used as a basis for structuring the problem and defining the application of the hybrid PSI-CoCoSo method for ordering Brazilian REITs in the corporate slabs sector traded on the São Paulo stock exchange (B3), the criterion was to address funds that have at least one million reais in daily trading on the stock exchange. As a result, the hybrid method proved to be effective in the ranking process, providing robust results on the application and evaluation of Brazilian REITs.

Volatility Laundering: On the Feasibility of Wine Investment Funds

Volatility Laundering: On the Feasibility of Wine Investment Funds

Інвестиційна політика промислового підприємства: теоретичні аспекти та особливості формування в кризових умовах

The article defines that ways of interpreting the essence of the concept of "investment policy" may vary depending on the opinions and considerations of different authors. Based on the generalization of the main approaches to the definition of investment policy in economic literature, various aspects of investment policy were highlighted, in particular, the key ones are: strategic planning, regulation, stimulation and influence on the distribution of resources. It is substantiated that the role of investment policy in the activity of an industrial enterprise is expressed through the connection of the concepts "investment – policy – investment policy", the essence of which is subject to a certain logic. In fact, we are talking about investing resources or assets in a certain project or enterprise, which should stimulate and support investment activity through a complex of processes of formation, realization and implementation of decisions, strategies and actions. It is proved that even in unstable economic conditions, large enterprises can implement large-scale investment programs related to the purchase of expensive, often imported, high-performance equipment, while the investment funds of small and medium-sized businesses are directed mainly to the purchase of relatively not very expensive low-performance machines. During periods of crisis, investors become more attentive to corporate fundamentals, which leads to an outflow of capital from defensive portfolios. Investors find a way out in approaches focused on the long-term sustainability of firms. World experience shows that one of the most effective investment options is involvement in innovative investment activities, which should become a leading reference point in the implementation of the investment policy of industrial enterprises. This will not only help protect equity from loss or depreciation, but will also allow the business to receive regular income in the form of interest or dividends and a number of other benefits.

Stock price volume leap principle based on investor sentiment contagion model

The rise and fall of the Chinese stock market has been the subject of many studies since its inception. However, the recurring uncertainty of the broad market and individual stocks has overturned many people’s perceptions of the financial market. This paper explores the principles of the rise and fall of individual stocks under certain conditions, starting from Samuelson’s phenomenon of backward bending of the price supply curve for oil and labour, and proposes a methodology for stock market investment based on this principle. The results of the study show that the rise of stock prices is often characterized by a rapid jump. An important factor related to this is the interest rate of private lending. The rise and fall of private lending rates affect the expected return on stock market investment funds and has an important impact on stock market investment. Therefore, in the absence of a qualitative change in the stock’s texture, the medium-term rate of increase is the key to judging the stock price’s later trend. The results of this study provide a new direction to think about when judging the short- and medium-term stock price movements.

ПРОЕКТ USAID «ІНВЕСТИЦІЇ ДЛЯ СТІЙКОСТІ БІЗНЕСУ»: ГРАНТИ ДЛЯ СЕРЕДНЬОГО ТА ВЕЛИКОГО БІЗНЕСУ

The article examines the USAID Project “Investments for business sustainability”, in particular opportunities for large business companies. It was emphasized that in 2024, the IBR Project will implement its tasks through the provision of grants for joint investment and technical assistance to Ukrainian enterprises with an annual turnover of 8 million US dollars and more. “Co-investment” means that, in addition to grant funds, the potential grantee must contribute its own or other (non-grant) funds or resources that are clearly tied to the implementation and costs of the proposed concept. The study demonstrates the conditions for receiving grant assistance, and examines the eligibility criteria. And also, it is emphasized: in order to receive a grant of up to 2,000,000 US dollars, organizations must have a successful business model, take into account standards and trends, as well as demonstrate management skills to adapt new practices and capital investments. Emphasis is placed on the fact that the IBR Project determines that the minimum multiplier of sales volumes compared to the amount of the IBR Project grant must be at least five (for example, each USD 1 of the grant should lead to an increase in sales and exports of at least USD 5). Development finance institutions, institutional investors, direct investment funds, venture capital funds, angel investors, incubators/accelerators, business/professional associations, as well as other suppliers and consortia of investment services can also apply for a grant under the USAID Project “Investments for Business Sustainability “. It was concluded that the USAID Project “Investments for business sustainability” is an important initiative to support business sustainability in Ukraine, aimed at stimulating economic development, increasing sales and exports, as well as creating new jobs. Joint investments and technical assistance from grants can contribute to the effective financing and development of enterprises, contributing to their competitiveness and compliance with international standards.

LEGAL ISSUES OF ECONOMIC SUPPORT FOR PERSONAL SUBSIDIARY FARMS OF CITIZENS IN THE REPUBLIC OF KAZAKHSTAN

This article addresses the legal challenges of providing economic support to personal subsidiary farms (PSFs) in the Republic of Kazakhstan. PSFs play a crucial role in the agricultural sector, contribut-ing to food security and economic stability in rural areas. Despite their importance, private investment funds often encounter numerous issues, particularly in accessing economic support and legal protection. However, effective functioning and development of PSFs require economic stimulus measures and legal support. The article analyzes existing legal mechanisms of support, such as credit, subsidies, and pref-erential taxation, identifying shortcomings in their implementation. Attention is focused on legislative imperfections and practical challenges. Additionally, issues of PSF insurance and providing agricultural equipment through leasing as economic stimulus measures are discussed. The subject of the study is the legal mechanism of economic support for private farming of citizens in Kazakhstan. The conclusions underscore the significance of a comprehensive approach to legal regulation and economic support for PSFs in Kazakhstan, including legislative improvements, enhancement of financial mechanisms, and infrastructure development. The author provides recommendations for improving legal norms and imple-menting effective support mechanisms, which can contribute to enhancing the economic well-being of rural residents and the overall development of the agricultural sector.

Государственные инвестиции и устойчивость мировой экономики

As history shows, in difficult periods, there is invariably an increase in the state’s involvement in economic life. As of now, there is a number fundamental macrotrends showing that the world fell into a highly dangerous situation of so called polycrisis. These include more and more evident dysfunction of the US-centric model of globalization, the inexorable formation of new independent centers of international power, extremely high level of geopolitical turbulence. The global financial and economic sphere continues to function due to massive debt pumping which translates to its underlying fragility. That is why the formation of an efficient system of sustainable development, as proclaimed in the UN SDG program, is so urgent. In order to overcome the current state of instability the world economy needs to found and engage stable and reliable sources of long-term capital instead of borrowed money. Such capital is available with the institutional investors, primarily the sovereign wealth funds and pension funds. As for the first ones, in recent years, they have noticeably diversified the goals, directions and objects of their operations. The changes are so serious that a term “sovereign wealth funds 3.0” entered into the analytical discourse. In the activities of most state investors, there is a tendency to shift the focus from the external to the internal one, which does not allow capital to completely dissolve in the global financial system. The geographical priorities of investment are changing: if initially the focus of state funds was on the most developed economies of the world, now it is beginning to shift towards the world majority, which in the future should contribute to a more equal distribution of productive forces and wealth and, as a result, to increase the stability of the world economy and improve the quality of its dynamics. “Sovereign wealth funds 3.0” are also characterized by new methods of funding, when it is provided by giving the fund the right to use cash flows generated by the state assets entrusted to it. Some sovereign wealth funds, having reached a certain level of maturity, enter the global private capital market, partially filling the deficit of reliable debt instruments observed there. Due to the peculiarities of financing and a long-term planning horizon, large sovereign wealth funds are able to painlessly absorb temporary financial losses, compensating them in the long-term perspective. This allows them to carry out the most important long-term projects. Thus, the state investment funds make a significant, though not always visible and appreciated, contribution into the stabilization of the financial market and the global economy at large.