Many institutional and individual investors have an asset allocation policy that calls for investing a specified percentage of the total value of a portfolio in each of several asset classes. To conform with such a policy as market values change requires selling assets that performed relatively well and buying those that performed relatively poorly. Such a strategy is clearly contrarian and can...

To determine whether the investment decisions of institutional plan sponsors contribute to their asset values, this study used a dataset of 80,000 yearly observations of institutional investment product assets, accounts, and returns for 19842007. Results show that plan sponsors may not be acting in their stakeholders’ best interests when they make rebalancing or reallocation decisions. Investm...

The growth of the mutual fund industry will continue to grow positively in line with condition national economy, which is starting recover from crisis caused by pandemic. It essential study factors that influence this phenomenal carry out risk mitigation. This research focuses on affect NAV fluctuation considering macroeconomic dimensions such as consumer confidence index, interest rates, stock...

We investigate whether mutual fund families strategically transfer performance across member funds to favor those more likely to increase overall family profits. We find that ‘High family value’ funds (i.e. high fees or high past performers) over-perform at the expense of ‘Low value’ funds. Such performance gap is above the one existing between similar funds not affiliated to the same family. B...

Improvement and expansion of the transmission grid is still an unresolved issue in the new competitive environment. In current electricity markets, transmission lines have become assets that need financial instruments for investors who wish to ensure steady long-term returns and to withstand short-term market volatility. The timing and the combination of new transmission investments is key to a...

This paper investigates the performance of 402 real estate mutual funds worldwide during the period from March 1997 through April 2007. With the exception of funds targeting Asia, these funds generally adhere to their stated investment mandate, while global funds are mostly invested in the United States and the United Kingdom. Between 72 percent and 92 percent of the performance of these funds ...

The two main stylized facts in the mutual fund literature are that funds exhibit little ability to persistently outperform their peers, but that new money flows into funds with the highest past returns. The traditional interpretation is that fund managers are unskilled and fund investors are unsophisticated. Berk and Green (2004) offer an alternative, arguing that more-skilled managers will man...

The mutual fund industry manages about a quarter of the assets in the U.S. stock market and thus plays an important role in the U.S. economy. The question of how much control is concentrated in the hands of the largest players is best quantitatively discussed in terms of the tail behavior of the mutual fund size distribution. We study the distribution empirically and show that the tail is much ...