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FUND SIZE, PERFORMANCE AND FLOW: AN ASSESSMENT OF THE PHILIPPINE MUTUAL FUND INDUSTRY FROM 2000 TO 2011

ABSTRACT

The study aims to reply the question, “how does fund magnitude affect the performance of Philippine mutual funds, and how does performance subdue future fund flows?” For fund bigness, the study hypothesizes that fund magnitude serves as a proxy for other stock characteristics that may be related to execution. Among these proxy characteristics are outlay ratio, portfolio turnover, total load and stock age. It follows part of a former study conducted by Chen, Hong et.al. (2002) in the midst of U.S. mutual fund companies that reported each effect of fund size on accomplishment of active mutual funds controlling because the aforementioned proxy characteristics. For permanent ~ flow, it follows part of a study ~ dint of. Jank and Wedow (2009) that agree evidence on the impact of achievement to mutual fund inflows and outflows. It hypothesizes that investors scourge a fund’s bad performance with redemptions and good performance with purchases.

CHAPTER I. INTRODUCTION

1.1 BACKGROUND OF THE STUDY

While the Philippine reciprocal fund industry still looks premature in greatness compared to its Western and Asian counterparts, it has be suitable to an increasingly important part of the fatherland’s financial and capital markets. The calculate of operating funds in the people has somehow grown and investors it being so that have more options where they be possible to align their own financial goals and hazard tolerance with, while fund managers have power to play a more pivotal role in the fixity of purpose of stock prices as they have the direction of a sizeable stake in corporate rectitude with their stock positions. Still, a with greater advantage understanding of the economies of dish in this industry is deemed serviceable so as to help both the investors taken in the character of they select the appropriate fund that they compass will give better future performance and correlative fund managers as they work in c~tinuance being efficient in their fund operations.
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