Investment Funds Research Articles

Sustainable investing in extreme market conditions: doing well while doing good

PurposeThe aim of this study is to identify environmental, social and governance (ESG)-focused funds that can effectively uphold ethical principles while also delivering competitive financial returns by evaluating the performance of 24 well-established exchange-traded funds (ETFs). The study also compares the performance of four widely recognized ETFs representing NASDAQ (ticker: QQQ), S&P500 (SPY), Dow Jones (DIA) and Russell 2000 (IWM) with the sample of 24 ESG funds.Design/methodology/approachThis paper utilizes four complementary measures, namely Sharpe, Sortino, Omega and Calmar ratios, to assess the risk-adjusted return performance of ETFs, with a particular emphasis on extreme downside risk.FindingsThe findings indicate that ESG-focused ETFs can predominantly outperform DIA and IWM in the last five years (1 November 2018–22 March 2023). However, when compared to QQQ and SPY, only ICLN, SUSA and DSI consistently delivered competitive risk-adjusted returns. The performance of DSI and SUSA is almost equivalent to QQQ and SPY even during the last ten years.Practical implicationsThe paper conducts a risk-return analysis of alternative ESG investment funds, suggesting that not all ETFs are created equal and that careful selection is vital for achieving different investment objectives. It is imperative to recognize that past performance is not a reliable indicator of future outcomes, requiring consideration of other factors in the post-evaluation phase.Social implicationsThe study provides evidence to support the “doing well while doing good” hypothesis, indicating that competitive returns are achievable while also engaging in socially responsible investment.Originality/valueThis study fills a vital gap in the literature on ESG investment by highlighting that the choice of funds stands as the primary factor responsible for the conflicting findings by previous studies.

The Role of Green Finance in Sustainable Business Strategies: Opportunities and Challenges for Business Organizations

Amidst increasing awareness of environmental and social issues, businesses worldwide are increasingly recognizing the importance of adopting sustainable business strategies. Green finance has become a popular approach among companies to integrate financial aspects with sustainable environmental goals. This research aims to investigate in-depth the opportunities and challenges associated with green finance practices for business organizations. The study is a literature review with a qualitative approach, utilizing descriptive analysis. Data for this research were obtained through a search of articles on Google Scholar spanning from 2014 to 2024. The study findings indicate that in an era where environmental awareness is on the rise, green finance practices are becoming increasingly crucial for companies looking to adopt sustainable business strategies. Green finance enables companies to integrate environmental values into investment decisions and fund allocation, creating incentives for more environmentally efficient business practices, and helping to mitigate environmental risks that may disrupt long-term operations. However, the implementation of green finance faces several challenges, including lack of understanding and awareness, complexity in measuring environmental impact, initial costs and economies of scale, limitations in data and measurement methods, as well as resource and internal capacity constraints. To address these challenges, cross-sector collaboration among private, government, and financial institutions is key.

Internet fraud as one of the types of fraud

The article investigates the current aspects of internet fraud in the context of the coronavirus pandemic and the Russian-Ukrainian war. The increased use of the Internet during quarantine and wartime creates new opportunities for scammers, who exploit this situation to deceive people. Emotional instability, financial problems, and the spread of misinformation also contribute to the growth of fraud online. The article analyzes the legislative approach to combating fraud in Ukraine and identifies the specifics of this type of criminal offense. Due to the accessibility of the Internet, scammers quickly adapt their schemes to the digital environment, making network users more vulnerable. The explores the diversity of methods and types of internet fraud, including phishing, cryptocurrency fraud, social engineering, and other schemes. The authors provide data from the «Data Breach and Incident Response» (DBIR) report. Methods such as phishing, farming, fraud through social media and email, as well as manipulations with ICOs and crypto investment funds, are examined in detail. Special attention is paid to fraud in wartime, mentioning fundraising for military purposes, deceptive schemes with family announcements, and fake evacuation messages. The level of vulnerability of users, geographical features, and the age category most often targeted by internet fraud are evaluated. The article also discusses the aspect of computer equipment, mobile devices, and other means of accessing the Internet used by criminals to carry out fraudulent activities. The authors emphasize the prevalence of internet fraud, where perpetrators attempt to hack websites of government organizations, banks, or media to obtain confidential information or spread fake news. Measures to combat this phenomenon are proposed. Various types of internet fraud and methods of prevention are examined in detail, including software updates, installation of antivirus software, use of strong passwords, and two- factor authentication. It is noted that awareness and a responsible approach to protection on the Internet are key to preventing fraud. Additionally, the criminal liability for fraud in Ukraine and the possibility of strengthening this liability in wartime are discussed.

Creating Low‐Carbon Economies: Probing Transition Dynamics through the Lens of Field Theory

AbstractWe employ field theory as an approach to analysing sustainable regional development by reconciling funding needs and funding procurement. Initial expectations that private capital would bridge the financial gap to decarbonize our economies and societies have not materialized. Instead, state‐led coalitions increasingly introduce spatialized decarbonization strategies in which public development banks are pivotal, yet underappreciated, actors. Field theory provides a fresh perspective for mapping the particular context in which regional industrial policies intersect with broader national and supra‐national investment programmes and funding needs for these long‐term initiatives. Transitions are typically directed but open‐ended social processes, necessitating agency to both alter context and institutions and stabilize the emerging new structures. Field theory can surpass limitations in approaches like transition studies and integrate change mechanisms across scales.

STATE AND PROSPECTS FOR THE DEVELOPMENT OF ISLAMIC FINANCE INSTRUMENTS (SUKUK) IN RUSSIA AND ABROAD

The search for new sources of financing investment projects in modern Russia in the context of external sanctions and the implementation of geopolitical threats actualizes the problem of incorporating Islamic finance instruments into the structure of the financial market. The early twentieth century development experience of a number of foreign countries shows the steady growth of the assets of Islamic banks, investment funds and the volume of issuance of investment certificates (sukuk), which constitute the main segments of Islamic finance in the world. Islamic financial assets are widely represented in the Gulf countries, Southeast Asia, the Middle East and South Asia, and Africa. The implementation of the principles of Islamic finance in the Russian Federation is hampered by legal, cultural, historical and political factors. While there are certain Islamic financial products in Russia, there is no issue of sukuk at all. In this regard, the purpose of this paper is to study the principles of Islamic finance and the functioning mechanism of the market for the investment certificates (sukuk), possibilities and limitations of their implementation in the modern Russian economy. The author defines sukuk as an Islamic financial instrument used for securitization of assets, and identifies its differences from traditional bonds. Alternative approaches to solving the problem of compliance of sukuk with Sharia principles are analyzed. The prerequisites for realizing the potential of sukuk in modern Russia are determined and the obstacles to their issuance are formulated. It is concluded that the adoption of the Federal Law of 04.08.2023 N 417-FZ "On Conducting an Experiment to Establish Special Regulation in Order to Create the Necessary Conditions for Carrying out Partnership Financing Activities in Certain Constituent Entities of the Russian Federation and on Introducing Amendments to Certain Legislative Acts of the Russian Federation" and its implementation, taking into account its provisions of pilot projects in a number of Russian regions, will make it possible to intensify the process of incorporation of project financing instruments into the structure of the financial markets of modern Russia.

From a ‘plain vanilla’ exercise to a highly complex compliance monitoring framework: Some practical challenges in investment compliance

The paper analyses the evolution of investment compliance over the past 15 years, since the Financial Crisis of 2008, and its transformation from a ‘plain vanilla’ task to a highly complex monitoring framework. The paper attempts to identify the roots for this transformation and comes to conclusions that are not intuitive. It further analyses the investment policies used in the sales prospectuses of the investment funds and elaborates patterns for those policies. The analysis suggests that it is appropriate to divide the patterns into two basic concepts: The ‘investment concept’ and the ‘exposure concept’. While the former seemed to fully dominate the market 15 years ago, the transformation to the new concept appears to progress at an accelerated pace. This is due to the increased complexity of the investment policies of funds and of the financial instruments that have been created by the financial market participants, as well as investment strategies employed by the portfolio managers, which cannot be properly encompassed by the old concept any longer. Participation in the creditor committees is an event that is obvious for the portfolio managers but may present fundamental legal concerns. Already, participation in such committees is doubtful for the funds that are prohibited from exercising a significant influence on their investment targets, such as undertakings for collective investment in transferable securities. An additional question that emerges when participating in such committees, and one which is analysed in this paper, is the question on the allocation of costs, the answer to which is rather art than science.

The international political economy of Saudi Arabia: Sovereign fund and foreign policy

AbstractThis article develops a framework for attributing motivations to Sovereign Wealth Fund (SWF) investment by noting that there are two major subdivisions, those that argue that the investments are undertaken due to macroeconomic factors and those that argue there is a political element as well. The political literature is divided into three subcategories of domestic political considerations, geopolitical competition and economic diplomacy. The literature of the Public Investment Fund (PIF) does not include any discussion of economic diplomacy as a consideration, an omission this article seeks to rectify. Using a realist understanding of international political economy (IPE), the article explores the influence of elites, the nature of PIF investments in America, India, China and Russia, and collaboration with other SWFs on investment. The article concludes that economic diplomacy should be considered as one of a multitude of variables that determine how and where the PIF invests.

Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Investment Funds

Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Investment Funds

Sosialisasi Hukum Perbankan Pembiayaan Kredit Usaha Rakyat (KUR) Bagi Pengembangan UMKM di Desa Kalidungjaya Karawang

The People's Business Credit Program is one of the government's programs to increase access to financing for Micro, Small, and Medium Enterprises (MSMEs) which is channeled through financial institutions with a guarantee pattern. The financing distributed by people's business credit comes from banking funds or financial institutions that are people's business credit distributors. The funds provided are in the form of working capital and investment funds which are distributed to individual/individual MSMEs, business entities, and/or business groups who have productive and viable businesses but do not have additional collateral and also do not have good financial records. Even though the government has provided large MSME funds, the public is still unaware of people's business credit distribution. The people's business credit program is still the spearhead of government programs in efforts to expand access to financing for micro, small, and medium enterprises. The main aim of implementing this socialization is for the community to be able to develop their business into a bigger one, have business activities with good financial reports, and have no doubts about applying for people's business credit to the nearest state-owned bank to expand their business.

PENGARUH PROFITABILITAS, KEPUTUSAN INVESTASI, KEPUTUSAN PENDANAAN, TERHADAP NILAI PERUSAHAAN:

A company is founded with the aim of achieving maximum profits or maximum profits and optimizing company value. Company value can describe the condition and financial performance of a company. The aim of this research is to determine the influence of profitability, investment decisions, funding decisions, dividend policy and company size on company value. This type of research uses a systematic literature review By collecting literature reviews obtained from Google Scholar methodology and empirical data analysis techniques. The results of this research state that profitability has a very positive and significant influence on investment decisions, funding decisions, dividend policy and company size on company value.

The Role of the Financial Services Authority as a Strategic Partner for the Progress of the Indonesian Capital Market

The Indonesian capital market still faces several obstacles, including relatively low growth rates, limited access to finance, and significant financial risks. Financial services authorities can become strategic partners that encourage capital market growth and stability by innovating products and services, increasing financial access, and collaborating with other parties. This research uses a descriptive type of research with a literature review and reading sources related to the research collected using the literature review research method. This research aims to explore the role of financial services authorities as strategic partners in supporting the progress of the capital market in Indonesia. Based on various sources and theories, it can be concluded that as a supervisory authority, the OJK regulates and supervises institutional, prudential and sound aspects and carries out inspections of financial institutions to ensure that each financial institution is healthy and able to serve the public interest. OJK regulations apply to the issuance of operating permits for stock exchanges, clearing and guarantee institutions, investment fund custodians and settlement agents, securities companies, investment advisors, securities bureaus and other legal entities. OJK also collaborates with various related parties, including educational institutions, the financial industry and the government, to encourage innovation in the Indonesian capital market. The impact of this OJK partnership can help mitigate community losses due to errors by capital market players.

The Role of Social Investment Funds in Promoting Capacity Development of Youth Organizations in Senegal

This take a look at examines the effect of social investment price range at the capacity improvement of teens agencies in Senegal, utilising a blended-strategies technique. Quantitative analyses consisting of descriptive records, correlation analyses, regression analyses, and ANCOVA, along qualitative insights from interviews, shed light on the connection among funding degrees and programmatic effectiveness. The findings display sturdy wonderful correlations between investment ranges and programmatic effectiveness, supported via regression and ANCOVA analyses demonstrating the giant have an impact on of funding on organizational outcomes. Qualitative records in addition improve the understanding, highlighting stepped forward management, resource management, and community engagement amongst teens companies. This observe emphasizes the importance of sustained funding in youngsters-led initiatives and recommends targeted help to maximise their ability as drivers of social alternate and sustainable improvement in Senegal.

Gender Diversity: An Empirical Study on 4.151 US Investment Funds

The aim of this paper is to explore the issue of gender diversity (GD) in relation to the world of investment funds. In recent times, in fact, savers’ choice does not only converge on the mere pursuit of profit. Investment funds, in this scenario, are increasingly judged according to their environmental and ethical actions, and not just by the promised rewards. Individual and institutional investors, on this wake, are aligning their behavior with their values by taking responsibility for the investments they select. It is central, therefore, to understand and observe how issues such as GD are evaluated, managed and converted into rating values by funds. This paper is supported by a mixed research methodology involving, on the one hand, an in-depth literature review on the aforementioned topic and, on the other hand, a statistical study developed with the “R-Studio” program. Through the statistical derivation, this study proposes an analysis of histograms and scatter plots on a sample of 4.151 investment funds and the GD-related rating judgments compared with their net assets and longevity. Based on our findings, funds with higher net assets achieve high rating classes but not excellence. In fact, larger funds reside in lower rating classes. Similarly, it is also valid for the amount of capital managed by the funds. From the empirical evidence we provide, it can also be seen that, there is no evidence between GD rating category and youngest funds longevity. Filling a gap that exists in the literature on GD-related rating assessment in investment funds, the originality of this paper concerns the descriptive statistics proposed. In fact, the paper contributes to the literature on GD by enriching the analysis of the factors surveyed for its measurement and rating judgment. This study may have both theoretical and practical implications. From a practical perspective, the statistical evidence in this paper could be a guideline for practitioners oriented toward ethical and profitable investment choices. From a theoretical point of view, instead, GD evaluation and monitoring could be a tool to reduce problems related to transparency and legitimacy theory, mitigating information asymmetry between parties and aligning them on potential risks.

DeFiTrust: A transformer-based framework for scam DeFi token detection using event logs and sentiment analysis

Decentralized finance (DeFi) token scams are rising, leading to significant losses for investors and users. Hence, it is vital to identify malicious DeFi tokens accurately and early to protect investor funds. Current Machine Learning models that detect scam tokens rely entirely on DeFi token transactional behavior and have overlooked the public opinion that can be derived from news and social media posts, which can provide helpful information for identifying scam tokens. Further, existing frameworks to detect scam tokens fail to explain why certain tokens are identified as scams, hindering stakeholder confidence in such systems. This paper proposes a new transformer-based framework called “DeFiTrust” to identify malicious DeFi tokens using transaction events and social media posts. DeFiTrust has two components: event log processing and sentiment analysis. The former creates a feature vector representing temporal variations in the event logs of a token. The latter analyzes social media posts to determine public opinion about the token. A fully-connected neural network then processes both pieces of information to determine whether the token is legitimate or a scam. We evaluated the proposed model against existing Machine Learning-based models using real-world data. The results demonstrate that DeFiTrust outperforms existing approaches and detects scam tokens earlier. Explanations generated using Integrated Gradients reveal that DeFiTrust identifies scam tokens based on valid reasons, enhancing stakeholder trust in the proposed model.

Life cycle of private equity investments in physician practices: an overview of private equity exits.

Private equity (PE) firms acquire and grow physician practices through add-on consolidation, generating outsized returns on the sale of the acquisition in 3-8 years ("exit"). Private equity's abbreviated investment timeline and exit incentives may deter long-term investments in care delivery and workforce needed for high-quality care. To our knowledge, there has been no published analyses of the nature or duration of PE exits from physician practices. We address this knowledge gap by using novel data to characterize PE exits from dermatology, ophthalmology, and gastroenterology, physician specialties with the largest number of acquisitions between 2016 and 2020. Of 807 acquisitions, over half (51.6%) of PE-acquired practices underwent an exit within 3 years of initial investment. In nearly all instances (97.8%), PE firms exited investments through secondary buyouts, where physician practices were resold to other PE firms with larger investment funds. Between investment and exit, PE firms increased the number of physician practices affiliated with the PE firm by an average of 595% in 3 years. Findings highlight the rapid scale of ownership change and consolidation under PE ownership and motivate evaluations by policymakers on the effects of PE ownership over the life cycle of PE investments.

Emergency Management System Evaluation and Fiscal Policy Inspiration—Take Liaoning Province as an Example

Taking Liaoning province as an example, based on the evaluation of its emergency management system (EMS), this paper puts forward some suggestions on fiscal policy innovation in view of the main problems. Firstly, according to the hierarchical structure model, the evaluation system is established. The relative degree of the index is determined by the Delphi method, and the weight of the index at all levels is calculated. The evaluation factor set and evaluation grade set are constructed, and the EMS evaluation model of Liaoning province is established and evaluated by using fuzzy mathematics evaluation method. Secondly, according to the model evaluation results, four conclusions are obtained. The top three secondary indicators are Industrial Development, Policies Regulations and Fund Source, which are very important in EMS. The top three weights of the three-level indicators are the Development of Industry, Policy Formulation and Social Funds. Active fiscal policies should be formulated to use social funds to promote the development of emergency industries. Four of the second-level indicators have reached Good, and two have reached Average. Among them, the Basic Platform has the highest score, which is a positive result of EMS construction in Liaoning province. The final score of the comprehensive evaluation of the target is the low-end level in the Good grade, indicating that there is still much room for development in the construction of the system. Finally, according to the evaluation conclusion, this paper puts forward the fiscal policy innovation to support the development of EMS, including expanding the investment channels, updating the investment fund model, increasing the selection of policy tools and establishing the national emergency management fund.

The Impact of Fourteen Years of UK Conservative Government Policy on Open Access Youth Work

This article reviews the impacts of the UK Conservative Party’s government policies on ‘open access youth work’ since 2010, giving particular attention to the period since 2018 and to impacts in England. After clarifying the practice’s distinctive features, it outlines the ‘austerity’ demolition of its local provision and—amid continuing wider financial pressures—changes in the role and contributions of the voluntary youth sector. It lists a range of ‘gesture’ funds for financing responses to young people’s needs and interests as the government has defined them and uses the Youth Investment Fund (YIF) as a case study of how this money has been made available and allocated. Initiatives taken by the Department of Digital, Media, Culture and Sport (DCMS) are then examined: its Youth Review, National Youth Guarantee, review of the statutory guidance to local authorities, and support for ‘youth volunteering’. Two key developments are then considered that, by early 2024, were diverting and inhibiting an even partial sustained reinstatement of the lost open access youth work facilities. One, at the policy level, is the redefinition of ‘youth work’ by governments and by some within the youth work sector itself as a wide range of out-of-school practices with young people; the other, at the point of delivery, is the on-going difficulties in recruiting youth workers, especially those with direct practice experience. Finally, two possible tentative suggestions for some reinstatement of open access youth work provisions are then discussed.

RESPONSIBLE BUSINESS PRACTICE BY INSTITUTIONAL INVESTORS AS THE BASIC MEANS OF PREVENTING VIOLATIONS OF PUBLIC INTEREST OF CITIZEN INVESTORS

The article is devoted to the analysis of the concept of "responsible business conduct" from the point of view of public interest. It is noted that responsible corporate governance has its origins in the concept of "corporate social responsibility", which became widespread in the 1970s in the US and the UK as a result of increased public and consumer attention to the overall image of companies. At the international level, many documents have been adopted to regulate corporate social responsibility. However, not enough has been done in Ukraine to introduce this category into economic activity. The purpose of the research is to analyse the legal grounds and theoretical approaches to the formation of the concept of "responsible business conduct" and to present the author's approach to the essence of the concept of "responsible business conduct of institutional investors" from the point of view of the protection of the public interest. According to the purpose of the article, several scientific methods of modern epistemology were used in the scientific research. The methodological basis of the study was the theory of legal cognition developed by prominent experts in the field of investment law. In addition, special research methods were used, in particular: comparative – to compare the rules of international and national law; historical and legal – for retrospective analysis of the concept of social responsibility; special legal – for in-depth analysis of the regulations governing the procedure of investment; systematic approach and logical-legal method – to analyse the impact of some factors on the investment activity of individuals and some elements of the formation of logical and specific theoretical and applied conclusions. In conclusion, the authors define responsible business as a set of generally accepted norms, rules and principles that are voluntarily implemented by companies in order to achieve the goals of sustainable development of society; they are not part of the national legislation of Ukraine, but their observance indicates a certain business reputation of the business entity. For institutional investors, responsible corporate governance includes two main groups of activities of an institutional investor: "responsible attraction" of funds and "responsible investment" of funds of individual investors. The authors proposed to divide the responsible business conduct of an institutional investor to manifest its social responsibility into "responsible attraction" of funds and "responsible investment" of funds.

Socio-economic constraints to low-carbon transitions: insights from Kazakhstan’s Emissions Trading Scheme

ABSTRACT In this research, we examine energy facilities’ (both electricity and heat) responses to emissions trading in Kazakhstan, a fossil-fuel-dependent developing country, to understand why facilities have delayed the adoption of substantial carbon mitigation measures. Our research relies on the frameworks of sociotechnical systems (STS) and firm-level exploration-exploitation trade-offs (EET) because energy transitions are dependent on firm-level characteristics as well as industry – and society-level environments. We find poorly designed and inconsistent regulations, ambivalence to the carbon emissions, challenges from vested interests, energy security regulations and desire for stable socio-economic conditions to be the main society-level factors impeding the effectiveness of the Kazakhstan Emissions Trading Scheme (KazETS). The main industry-level factors hindering the KazETS were found to be the involvement of the state-owned enterprise (SOE) Samruk Energo which accesses government funding for coal-based facility investment, abundant coal reserves that are extracted at low cost, increasing costs and decreasing quality of fuel, relatively very high cost of natural gas, increasing demand for electricity and heat, lack of market competition and no international firms operating in energy generation. Finally, the main firm-level factors restricting investment in low-carbon technologies are low market incentives for investment to replace technologically obsolete assets, the lack of firm-level carbon strategies and very low capacity of workers.

Trust Matters in the Single Market, but How? Analysing Trust Amongst European Financial Supervisors

AbstractEuropean regulatory co‐operation has become essential for the smooth operation of the single market, and this in turn requires trust. In the case of the European Union (EU) ‘Undertakings for Collective Investment in Transferable Securities’ (UCITS) Directive, for example, the member states' financial supervisory authorities rely on each other to provide a harmonised regime for the sale of investment funds across the EU. Funds authorised in one member state can be sold freely in another member state without further authorisation. The national authorities need to trust each other to ensure a consistent application of EU law. Yet we know very little about how trust matters from the perspective of member state regulators. In this article, we provide a better understanding of the relevant components of trust in the single market in financial services through an in‐depth case study of an EU network of national financial market supervisory authorities.