UDC: 336.763.21
https://doi.org/10.25198/2077-7175-2019-6-32
IMPACT OF EXPENSES ON TOTAL RETURN OF ACTIVELY MANAGED EQUITY FUNDS
A.O. Valukhov
Public joint stock company «Arsagera Asset Management», Saint-Petersburg, Russia
e-mail: valukhov@gmail.com
Abstract. Investment funds play a leading role as a main instrument savings in economical systems of the developed countries. This appears in the fact that share of investment funds exposing to stocks and bonds is considerable in household savings; net asset value of these funds and household involvement in investing in stock market grows. There is also a trend on decreasing commissions of investment fund managers and general costs of financial intermediation in economical systems of the developed countries. In the Russian Federation mutual funds plays a minor role in comparison with conservative savings instrument – bank deposit, and involvement of households in stock market is at low level.
In connection with it the author stated the goal of this research – to investigate how the influence of such endogenous factor in the system «investment manager – client» as level of investment managers’ commissions and general costs can affect the overall return of the investment funds and their appeal as savings instrument. Among general methods of the research are retrospective analysis of the Russian non-industry investment funds returns and regression analysis of these returns on the level of general intermediation costs.
The research results demonstrated that investment funds’ overall costs influence on returns is significant but not essential. The research showcased that average investment funds’ return is lower than conservative levels of performance. This fact represents practical importance of the research. The research contains recommendation for investment fund managers to decrease overall costs in order to make investment funds reasonable instrument of savings. This work became one of rare researches among foreign and Russian scientists devoted to the problem, thus has scientific novelty. The direction of future researches is the area of fair commission determination.
Keywords: stock market, financial instruments, investment funds, transaction costs, savings, trust management, commission remuneration.
