scholarly journals Financial Markets Diffusion Patterns. The Case of Mexican Investment Funds

2016 ◽  
Author(s):  
Ewa Lechman ◽  
Harleen Kaur
Keyword(s):  
Financial Markets ◽  
Investment Funds

Uncharted waters: Investors get access to foreign exchange-traded funds

2021 ◽  
pp. 54-70
Author(s):  
S. R. Moiseev
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Driving Forces ◽  
Market Competition ◽  
Secondary Market ◽  
Portfolio Diversification ◽  
Exchange Traded Funds ◽  
Investment Funds ◽  
Retail Investors ◽  
Securities Trading

In 2022, Russian investors will get access to the wide possibilities of the global financial market. The Bank of Russia opens the market for foreign exchange-traded funds (ETFs) — one of the main savings instruments for households. The economy of ETFs differs from other investment funds, whose shares do not have secondary market. The opening of the ETFs market is intended to solve a number of issues for retail investors: moving away from the preference to individual foreign shares towards portfolio diversification, cost reduction, ensuring sustainable profitability, abandoning the aggressive securities trading, and supporting market competition. Soon, ETFs will be one of the driving forces in financial markets. However, their rapid growth is fraught with little-studied effects.

scholarly journals Analysis of the Hungarian investment funds along economic cycles

2021 ◽  
Vol 190 (5-6(2)) ◽  
pp. 48-57
Author(s):  
Emese Melinda Bogáth ◽  
◽  
Sándor Gáspár ◽  
Gergő Thalmeiner ◽  
Judit Bárczi ◽  
...  
Keyword(s):  
Financial Markets ◽  
Hierarchical Cluster ◽  
Investment Fund ◽  
Investment Funds ◽  
Economic Cycles ◽  
Fund Managers ◽  
Unique Nature ◽  
The 2008 Financial Crisis ◽  
Quantitative Changes ◽  
Economic Boom

As a result of the 2008 financial crisis, the international financial system underwent a fundamental change. The crisis has highlighted various weaknesses in the economic system. One of these weaknesses was the unregulated nature of investment markets and their inefficient structural structure. Funds managed by investment fund managers have also been hit hard by the crisis. In the post-crisis period of 2008, there was a dynamic economic boom, which also affected the types of investment funds and their changes. However, the economic crisis caused by the COVID-19 pandemic from 2020 onwards is a special crisis. Its unique nature is reflected in the fact that financial markets have remained stable under the influence of central banks. This, in turn, did not necessarily affect the investment market, and in particular investment funds, as expected in the event of a downturn. In our research, we illustrate the change of investment funds along economic cycles through the quantitative changes of Hungarian investment funds. In our analysis, we illustrate the evolution of fund changes through hierarchical cluster analyzes. In the course of our research, we found that Hungarian investment funds move in line with market and retail investment trends, and the structure of investment funds does not show a significant change during the sixteen years examined, regardless of changes in economic cycles.

scholarly journals The Efficiency of Active Asset Allocation Funds in the Period of Instability at Financial Markets

2012 ◽  
Vol 12 (2) ◽  
pp. 147-159
Author(s):  
Wojciech Krawiec
Keyword(s):  
Financial Markets ◽  
Asset Allocation ◽  
Stock Exchange ◽  
Investment Strategies ◽  
Investment Portfolio ◽  
Investment Funds ◽  
Financial Reports ◽  
Return Rates ◽  
Adequate Information ◽  
Online Investing

Abstract The objective of the hereby paper is the assessment of domestic active asset allocation funds efficiency in the period of 2007-2012, including the comparison of earned return rates against the return rates obtained by other mixed funds, as well as WIG and WIG20 stock exchange indices. Additionally, the purpose of the paper is to analyse the investment policy applied by the above listed funds, carried out based on records included in adequate information prospectuses, and also having considered the investment portfolio compositions presented in annual and 6-month financial reports covering these funds. The assessment of applied investment strategies efficiency is performed based on 12-, 24-, 36-, 48- and 60- month return rates set at the end of 6-month reporting periods. The analysis covered only domestic open-end active asset allocation investment funds included in this group following the definition accepted by Analizy Online investing assets in financial instruments issued by entities, officially seated in Poland or outside Poland and valuating participation units in PLN, which have been operating for at least 24 months from the day of 30th June 2012.

scholarly journals The Modern Financial Conglomerates Competition

2021 ◽  
Vol 65 (8) ◽  
pp. 14-21
Author(s):  
S. Dubinin
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Insurance Companies ◽  
Investment Funds ◽  
Information Platform ◽  
Financial Conglomerates ◽  
Financial Innovations ◽  
Big Data Technologies ◽  
The Usa ◽  
Macroeconomic Environment

The national and worldwide financial markets were dramatically reorganized in the after financial crisis 2007–2009 years period. The financial systems development faced new macroeconomic environment. The financial conglomerates are actively competing on the financial markets in now day situation. The financial institutes’ competitiveness is determined more and more by the factor of financial innovations on the information technology base. And the competition is escalating. This is the result of the IT companies, eCommerce firm’s invasion in the financial area. They are using the marketplace, information platform, the Big Data technologies. The major world commercial banks answer is the business-model change. The banking sector, the financial companies, in their turn, are targeting to expend their personal client service orientation with the Fintech ecosystems instruments. The banks became the management centers of the financial conglomerates and banking groups. Their role today is realizing the asset control over the SPV, investment funds, pension funds, insurance companies, which are transformed into the financial conglomerate’s divisions. The financial sphere space extends and so far, the prudential regulation and authorities’ activity spreads to all financial business aspects. This government activity is targeting today also on the international multipole competition. For example, the USA technological and financial innovations on the global financial markets are combined with the multilateral and unilateral economic sanctions aimed at banning the Chinese economic and political expansion.

scholarly journals Gambler’s ruin problem and bi-directional grid constrained trading and investment strategies

2020 ◽  
Vol 17 (3) ◽  
pp. 54-66 ◽  
Author(s):  
Aldo Taranto ◽  
Shahjahan Khan
Keyword(s):  
Financial Markets ◽  
Research Training ◽  
Investment Strategies ◽  
Short Term ◽  
Investment Funds ◽  
Innovation Potential ◽  
Research Training Program ◽  
Gambler’S Ruin ◽  
Gambler's Ruin Problem ◽  
Ruin Problem

Bi-Directional Grid Constrained (BGC) trading strategies have never been studied academically until now, are relatively new in the world of financial markets and have the ability to out-perform many other trading algorithms in the short term but will almost surely ruin an investment account in the long term. Whilst the Gambler’s Ruin Problem (GRP) is based on martingales and the established probability theory proves that the GRP is a doomed strategy, this research details how the semimartingale framework is required to solve the grid trading problem (GTP), i.e. a form of BGC financial markets strategies, and how it can deliver greater return on investment (ROI) for the same level of risk. A novel theorem of GTP is derived, proving that grid trading, whilst still subject to the risk of ruin, has the ability to generate significantly more profitable returns in the short term. This is also supported by extensive simulation and distributional analysis. These results not only can be studied within mathematics and statistics in their own right, but also have applications into finance such as multivariate dynamic hedging, investment funds, trading, portfolio risk optimization and algorithmic loss recovery. In today’s uncertain and volatile times, investment returns are between 2%-5% per annum, barely keeping up with inflation, putting people’s retirement at risk. BGC and GTP are thus a rich source of innovation potential for improved trading and investing. Acknowledgement(s)Aldo Taranto was supported by an Australian Government Research Training Program (RTP) Scholarship. The authors would like to thank A/Prof. Ravinesh C. Deo and A/Prof. Ron Addie of the University of Southern Queensland for their invaluable advice on refining this paper.

10 Self-Regulation and Private Actors

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Best Practices ◽  
Financial Markets ◽  
Financial Regulation ◽  
Self Regulation ◽  
Hedge Fund ◽  
Codes Of Conduct ◽  
Private Investment ◽  
Investment Funds ◽  
Private Actors

This chapter focuses on self-regulation as a means for private actors to address the governance challenge in private investment funds. It first considers the role and limits of financial regulation before discussing the ways that self-regulation and private actors can help in governing the organization, renumerating, risk management and reporting activities of private investment funds. It then examines four codes of conduct for private actors involved in private investment funds: the Best Practices of the President’s Working Group on Financial Markets, the Managed Fund Association’s Sound Practices, Sir Andrew Large’s consultation on ‘Hedge Fund Standards’, and the Institutional Limited Partners Association guidelines. The chapter concludes with an analysis of the role of investors in investor protection failures and the importance of private law for private actors seeking to address the governance challenge.

scholarly journals Financial markets diffusion patterns. The case of Mexican investment funds

Equilibrium ◽  
2017 ◽  
Vol 12 (1) ◽  
pp. 83 ◽  
Author(s):  
Adam Marszk ◽  
Ewa Lechman ◽  
Harleen Kaur
Keyword(s):  
Financial Markets ◽  
Mutual Funds ◽  
Market Share ◽  
Growth Models ◽  
Market Development ◽  
Logistic Growth ◽  
Logistic Curve ◽  
Investment Funds ◽  
Development Patterns ◽  
Innovation Diffusion Models

Research background: Exchange traded funds (ETFs) are one of the most influential financial innovations, reshaping the investment funds market in many countries, including Mexico. Due to their similar investment objectives, ETFs are considered substitutes for mutual funds. Purpose of the article: The aim of the article is to provide an indepth insight into the issues associated with the development of financial markets in Mexico over the period 2002-2012, putting special emphasis on the development patterns of ETFs. Methods: First we use descriptive statistics to unveil basic changes and trends in the Mexican investment funds (ETFs and mutual funds). Then we use a category of the innovation diffusion models, i.e. logistic growth models, in order to explore the key development patterns. Data sources and methodological framework are presented in the second section of the article, with a detailed description of the innovation diffusion models applied in the research (based on 3-parametric logistic curve). The sum of assets under management of ETFs and mutual funds is considered as the size of the total investment funds market. Findings and Value added: Empirical findings indicate a significant development of the ETF market, both in terms of assets under management and market share. According to the presented estimations, Mexican ETF market development can be described with the logistic growth models, and three characteristic phases of the logistic curve were clearly observable. The predicted ETF market development patterns point towards a further increase of the market share of ETFs over the next 3-5 years, yet the probability of exceeding the level of ca. 20-30% seems low.

scholarly journals STOCHASTIC INFORMATIVE EXPERT SYSTEM FOR INVESTMENT

2020 ◽  
Vol 21 (1) ◽  
pp. 136-156
Author(s):  
Aleksandras Vytautas Rutkauskas ◽  
Viktorija Stasytytė
Keyword(s):  
Expert System ◽  
Financial Markets ◽  
Stock Prices ◽  
Value Added ◽  
Risk Tolerance ◽  
Individual Investors ◽  
Investment Funds ◽  
Macroeconomic Indicators ◽  
Investment Process ◽  
Dynamics Of Stock Prices

The stochastic nature of investment process implies that it should be treated not unambiguously. Instead of concentrating only on possible return, it is worth analysing three parameters when we discuss the future investment results. These parameters are return possibility, reliability of this possibility, and the riskiness. The stochastic informative expert system for investment allows to analyse the behaviour of financial markets, forecasting the dynamics of stock prices and, along with that, rationally allocating investment resources. The proposed system is based on the adequate portfolio model, previously developed by the authors. Considering the real-time characteristics of financial markets, the system can be useful for individual investors, as well as for institutional investors, such as investment funds. Also, the authors propose the original risk tolerance determination methodology, which divides investors into three categories according their risk tolerance. The system can be applicable not only to capital markets, but also to other business or macroeconomic processes. As an example, a portfolio of the interaction of macroeconomic indicators with USA, UK, and Lithuanian data is developed. Such results could be useful for economists and governments in order to attain the higher value added in a particular country.

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