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Article
Publication date: 21 September 2012

Pornlapas Na Lamphun and Winai Wongsurawat

The purpose of this research is to supply basic statistics of fees and expenses charged by mutual funds in Thailand, and to investigate the economic determinants of the…

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1089

Abstract

Purpose

The purpose of this research is to supply basic statistics of fees and expenses charged by mutual funds in Thailand, and to investigate the economic determinants of the variations in these charges.

Design/methodology/approach

The authors construct an original dataset on characteristics of Thai mutual funds from annual reports filed between 2005 and 2007, and then use statistical analysis to investigate variations in fees and expenses.

Findings

Funds that are small, entail higher risk, and offer special income tax benefits charge higher fees and expenses. Bond funds that produce high returns on investment tend to charge significantly lower fees and expenses when compared to those that produce low returns.

Practical implications

Statistics from the gathered data can help investors better evaluate Thai mutual funds. Determinants of variations in the fees and expenses can yield useful insights for policy makers regarding the competition and efficiency of the asset management industry.

Originality/value

This paper adds to a small but growing literature that investigates characteristics of the asset management industries outside of the United States and Europe.

Details

International Journal of Emerging Markets, vol. 7 no. 4
Type: Research Article
ISSN: 1746-8809

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Book part
Publication date: 2 September 2020

Hasan Hüseyin Yildirim and Bahadir Ildokuz

Introduction – The banking sector is one of the most important building blocks of the financial system. A failure in the banking sector can cause serious problems in a…

Abstract

Introduction – The banking sector is one of the most important building blocks of the financial system. A failure in the banking sector can cause serious problems in a country’s economy. In order for countries to achieve economic growth and development goals, the banking sector, which affects all sectors significantly, needs to be strong. Countries with a robust and reliable banking system have a high credit rating. As a result of this high credit rating, the interest of foreign capital in the country increases. Thus, the credit volume of banks expands and loans are provided at a more appropriate rate for investments. In this respect, the performance and profitability of banks are important. The CAMELS performance model is a valuation system used to determine the general status of banks. The CAMELS model consists of six components. According to this, C represents capital adequacy; A, asset quality; M, management adequacy; E, earnings; L, liquidity; and S, sensitivity to market risks.

Purpose – The purpose of this study is to demonstrate the effect of the CAMLS variables on the variable E.

Methodology – In the implementation part of the study, the data of 11 banks in the BIST Bank Index between 2004 and 2018 were used. In the analysis part of the study, a panel data analysis method was used.

Findings – The capital adequacy (C), management adequacy (M) and liquidity (L) variables were effective on profitability. This study revealed the importance of the capital, management and liquidity variables, which are internal factors, in increasing the profitability of banks.

Details

Contemporary Issues in Business Economics and Finance
Type: Book
ISBN: 978-1-83909-604-4

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Book part
Publication date: 8 April 2010

Belverd E. Needles, Anton Shigaev, Marian Powers and Mark L. Frigo

Purpose – This study investigates the links between strategy, execution, and financial performance with particular attention to the underlying performance drivers that…

Abstract

Purpose – This study investigates the links between strategy, execution, and financial performance with particular attention to the underlying performance drivers that describe how a company executes strategy to create financial value.

Methodology – This study empirically investigates companies in the United States and 22 other countries over a 20-year period (11 successive 10n-year periods: 1988–2007): (1) to compare financial performance characteristics of HPC versus non-HPC; (2) to study the sustainability of performance in HPC; and (3) to identify the companies that exit or enter the HPC classification and the performance drivers and performance measures that characterized the change in HPC classification.

Findings – The 20-year longitudinal results confirm the results of prior studies as to the long-term superior performance of HPC over other companies (Objective 1). For sustaining HPC, results were consistent as to total asset management, profitability, financial risk, and liquidity (Objective 2). Declining HPC companies fail at total asset management, profitability, and operating asset management and significantly increase their financial risk. Emerging HPC companies improve liquidity through improved operating asset management and cash flows (Objective 3).

Practical implications – To become a HPC management must generate increased cash flows from income, manage receivables and inventory vigorously, and reduce its debt in relation to equity. Thereafter, management must concentrate on maintaining its asset turnover and growth in revenues while maintaining its profit margin and not increasing its debt to equity.

Value of the paper – The results provide direction for management of companies that aspire to HPC status and to maintain HPC status.

Details

Performance Measurement and Management Control: Innovative Concepts and Practices
Type: Book
ISBN: 978-1-84950-725-7

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Article
Publication date: 16 March 2010

John Banko, Scott Beyer and Richard Dowen

The purpose of this paper is to examine market concentration, economies of scale, economies of scope, and the relative size of a particular fund, within a fund family, as…

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1720

Abstract

Purpose

The purpose of this paper is to examine market concentration, economies of scale, economies of scope, and the relative size of a particular fund, within a fund family, as determinants of mutual‐fund expense ratio. This examination is focused at the asset‐manager level and is based on the Morningstar equity and fixed‐income style classifications.

Design/methodology/approach

All data used in this study come from the July Morningstar Principia database for the years 1997 through 2006. One challenge of working with these data is that Morningstar treats each separate class of a fund as though it were an individual fund. As a result all Morningstar data items are reported for each fund class as though they are data items for a separate fund. The data are modified so that the items for separate classes of a fund are merged into data for a single fund. For example, assets in a fund become the total of the assets in each class of the fund.

Findings

This study contributes to the literature on mutual‐fund managers, and the literature on the structure of mutual funds, by showing that market concentration at the asset‐manager level varies substantially across Morningstar styles, particularly for the fixed‐income funds. The paper shows that increased market concentration is associated with greater expenses for the funds under management, within a given Morningstar‐style box, for both equity funds and for fixed‐income funds. We also show that increased costs are partially offset by economies of scope for the fixed‐income funds.

Originality/value

This paper extends the current literature in several ways. First, it confirms the existence of economies of scale at the fund level within Morningstar style classifications. Second, it documents the existence of varying levels of market concentration within different Morningstar style classifications. Third, the results demonstrate that there is a negative relation between the scope of funds handled across the Morningstar classifications by a particular fund manager and the expense ratio for particular funds. Finally, the results presented in this paper show that the largest funds within a family are associated with the highest expense ratios in the family.

Details

Managerial Finance, vol. 36 no. 4
Type: Research Article
ISSN: 0307-4358

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Book part
Publication date: 9 May 2014

Belverd E. Needles, Marian Powers, Mark L. Frigo and Anton Shigaev

The present study investigates whether companies that exhibit high performance characteristics in the pre-financial crisis period can maintain their high performance in…

Abstract

Purpose

The present study investigates whether companies that exhibit high performance characteristics in the pre-financial crisis period can maintain their high performance in the financial crisis period of 2007–2009 and, in particular, the post-financial crisis period of 2010–2011.

Methodology

The current study of 1,473 companies in 25 countries and 66 industries (MSCI index) (1) extends the empirical research of prior studies through the year 2011; (2) identifies the operating characteristics (performance drivers and performance measures) and associated risk factors which were most critical with regard to sustaining, exiting, and entering HPC companies during the five 10-year periods since 1998–2007, and (3) summarizes conclusions about HPC results from the 13 ten-year periods (1989–1998 to 2002–2011) in this stream of research.

Findings

(1) Companies that sustain high performance over periods of financial stress clearly excel in asset turnover performance driver and on the performance measures of growth in revenues, profit margin, return on equity and return on assets. Sustaining HPC had less debt than other companies and consistent cash flow yields. Operating turnover ratios became less important in recent years as an indicator of high performance. (2) Although exiting companies maintained profitability, financial risk and liquidity, the key factor in their dropping out of HPC status is their failure to grow revenues. (3) Entering companies did not exhibit the superior performance in all categories.

Practical implications and value

The results provide strategic direction for management of companies that aspire to HPC status and to maintain HPC status once gained, particularly in times of global financial stress.

Details

Performance Measurement and Management Control: Behavioral Implications and Human Actions
Type: Book
ISBN: 978-1-78350-378-0

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Article
Publication date: 1 January 2002

Roy Barton, Delwyn Jones and Dale Gilbert

Strategic asset management (SAM) provides guiding principles for strategic planning, procurement, use and disposal of public sector buildings. It is proposed that the…

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1498

Abstract

Strategic asset management (SAM) provides guiding principles for strategic planning, procurement, use and disposal of public sector buildings. It is proposed that the whole SAM process must incorporate the principles and practices of ecologically sustainable development (ESD) founded upon intra‐generational equity, intergenerational equity, biodiversity, precaution, true cost assessment and continuous improvement principles. The paper presents observations and interim conclusions from a research project to develop a methodology of SAM incorporating the principles and practices of ESD. The paper describes the principles of SAM and ESD, makes observations about actual and potential connections and puts forward a matrix which correlates steps in SAM processes with desired outcomes of ESD. This matrix exploits a life‐cycle assessment approach used to develop planning frameworks, useful for developing macro‐level concepts such as ecological footprints and micro‐level building performance benchmarks. It is postulated that the goal of ‘sustainable building’ must become embedded in existing processes of SAM and in any improvements to those processes. It is understood that any integrated system of SAM and ESD will use, conserve and enhance the community’s resources so that ecological processes, on which life depends, are maintained and the total quality of life, now and in the future, can be increased.

Details

Journal of Facilities Management, vol. 1 no. 1
Type: Research Article
ISSN: 1472-5967

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Article
Publication date: 14 December 2021

Muhammad Jufri Marzuki and Graeme Newell

As the prolonged effect of the COVID-19 pandemic has materially impacted investment returns significantly, it is more crucial than ever for institutional investors to…

Abstract

Purpose

As the prolonged effect of the COVID-19 pandemic has materially impacted investment returns significantly, it is more crucial than ever for institutional investors to redefine their property portfolios using assets with better investment management potential and meaningful diversification benefits. The “alternative asset revolution” is gaining traction in the property investment space internationally among institutional investors due to the shifting investment attitudes towards the alternative property sectors. Australia's $205bn healthcare property sector is at the forefront of this revolution due to its societal significance, as well as its attractive investment qualities. This paper investigates the institutional investor management of the Australian healthcare property sector via both the direct and listed channels and empirically analyses its investment attributes.

Design/methodology/approach

Using the unique Morgan Stanley Capital International/Property Council of Australia quarterly data set for Australian direct healthcare property over 2006–2020, the risk-adjusted performance and portfolio diversification potential direct healthcare property and listed healthcare were assessed. A constrained mean-variance portfolio optimisation framework was used to develop a six-asset portfolio scenario to analyse the portfolio added-value benefits of both direct healthcare property and listed healthcare in a mixed-asset investment strategy. A similar set of analysis was performed using the post-global financial crisis (GFC) quarterly time series of 2009–2020 to investigate the healthcare asset class' performance dynamics in the post-GFC investment timeframe.

Findings

The results indicate that direct healthcare property and listed healthcare offer two key advantages for institutional investors in managing their property portfolios: (1) a stable yet superior risk-adjusted performance and (2) significant portfolio diversification potential in managing their property portfolios. Importantly, both direct healthcare property and listed healthcare provided valuable contributions in strengthening an investment portfolio's performance. The post-GFC sub-period analysis revealed a consistent conclusion regarding the healthcare asset class's performance attributes.

Originality/value

This is the first research that provides an independent empirical examination of the strategic importance of Australian healthcare property as a maturing alternative property sector that can serve both investment and environmental, social and governance goals of investors. This research presents a positive investment prognosis for the Australian healthcare property sector to achieve its institutionalised status as a mainstream asset class of the future.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 1 February 2021

Yaman Omer Erzurumlu and Idris Ucardag

This paper aims to investigate private pension fund investor sentiment against fund performance and cost in an environment of frequent regulatory changes. The analyses are…

Abstract

Purpose

This paper aims to investigate private pension fund investor sentiment against fund performance and cost in an environment of frequent regulatory changes. The analyses are conducted in a low return, high-cost private pension fund market environment, which makes it easier to observe the relationship between investor sentiment to return and cost.

Design/methodology/approach

This paper conducts fixed effect, random effect and random effect within between effect panel data analyses of all Turkish private pension funds from 2011 to 2019. This paper conducts the analyses using aggregate data and subsets based on fund characteristics and pre-post regulation periods.

Findings

When regulations provide compensation and improve market efficiency in a pension fund market, investor focus shifted from performance to cost. Investors allocated assets with respect to return realization when adequately compensated for risk or had favorable cost contract clauses. Consequently, investors in pension funds with lower expected returns and no special fee reduction clauses tended to adopt the strategy of cost minimization.

Research limitations/implications

The overlap of regulatory change periods could complicate the ability to distinguish the impact of any one specific change. The findings therefore cannot be generalized to differently structured markets.

Practical implications

Regulatory changes could lead to a switch of investor objectives. When regulatory changes compensate investors and increase market efficiency, investors objective could switch from performance to cost.

Originality/value

This study investigates investor sentiment in a relatively young private pension fund market, in which the relevant regulatory body ambitiously implements frequent changes in regulation. The selected market is unique in the sense that it has negative real returns and high costs, which make investor focus to return and cost more readily apparent.

Details

Journal of Financial Regulation and Compliance, vol. 29 no. 2
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 6 February 2017

Hedley Smyth, Aaron M. Anvuur and Illona Kusuma

Examine the extent of integration in delivering value from design and construction (DC) activities for total asset management (TAM) and operations post-completion. DC and…

Abstract

Purpose

Examine the extent of integration in delivering value from design and construction (DC) activities for total asset management (TAM) and operations post-completion. DC and operations and management (OM) are both addressed. The problem owners are those in roles and organisations responsible for integrating DC with OM. The purpose of this paper is to show the extent of integration between actors along the project lifecycle. Relationally integrated value networks (RIVANS) provide the conceptual lens for the analysis.

Design/methodology/approach

A mixed method approach was used. A questionnaire survey and semi-structured interviews were employed.

Findings

There is a lack of engagement between DC and OM. The trend is moving counter to integration. BIM is not found to be a technical solution.

Research limitations/implications

The mixed method helps extend the RIVANS perspective. Further research to understand and support integration is needed, especially qualitative research to provide greater granular understanding.

Practical implications

The identified trend away from integration poses management challenges in delivery and for sustainability in use. Supply chains engage specialists, yet internal and inter-organisational collaboration require management attention to value creation. This includes the DC-OM interface. Both sides can benefit from increased engagement.

Social implications

Infrastructure and property provision will continue to fall short of user and environmental functionality without improved integration.

Originality/value

A contribution to the project and asset management interface is made, showing low integration, disengaged asset management. BIM is unable to plug the gaps. The RIVANS analytical lens provides a perspective for improvement.

Details

Built Environment Project and Asset Management, vol. 7 no. 1
Type: Research Article
ISSN: 2044-124X

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Book part
Publication date: 28 June 2016

Belverd E. Needles, Mark L. Frigo, Marian Powers and Anton Shigaev

Prior research shows that companies that achieve high performance excel at certain financial objectives. This chapter addresses the question: Do companies that excel at…

Abstract

Purpose

Prior research shows that companies that achieve high performance excel at certain financial objectives. This chapter addresses the question: Do companies that excel at these financial performance objectives also excel in integrated reporting and sustainability reporting?

Methodology/approach

We compare a sample of high performance companies (HPC) with a sample of companies that purport to support integrated reporting, and a sample that purport to support sustainability reporting. Our hypotheses are that HPC will equal or exceed the integrated reporting and sustainability reporting practices shown by International Integrated Reporting Committee (IIRC) and Global Reporting Initiative (GRI) companies and US companies will be less at these practices than non-US companies.

Findings

Our findings indicate that IIRC companies and GRI companies generally do not meet the high financial performance measures of the HPC. Based on an integrated reporting and sustainability reporting matrix, we show that HPC exhibit equal performance on the practices of sustainability and integrated reporting compared to GRI companies, but both HPC and GRI are lower on these practices than IIRC companies. Also, US companies disclose less information in sustainability reports and integrated reports as compared to non-US companies. Overall, all three groups fall short of full compliance with standards of integrated reporting and sustainability reporting.

Originality/value

This chapter provides evidence as to the financial performance and the current state of integrated reporting and sustainability reporting among HPC, GRI, and IIRC companies. This chapter highlights the global need for a generally accepted set of standards for sustainability and integrated reporting practices.

Details

Performance Measurement and Management Control: Contemporary Issues
Type: Book
ISBN: 978-1-78560-915-2

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