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Evaluating fund capacity: issues and methods
- Source :
- Accounting & Finance. 59:773-800
- Publication Year :
- 2017
- Publisher :
- Wiley, 2017.
-
Abstract
- This report examines the evaluation of capacity in an investment management context, outlining the key issues and various methods of analysis. We address the following question: “how large can a fund get before it is unable to create additional value for its investors?” In doing so, we frame the discussion under the assumption that an active fund forms a portfolio based on a particular investment ‘signal’, which should be read as a general term for the information or process by which investment opportunities are identified. A signal may comprise indicators, forecasts, viewpoints, a strategy, and so on. The issue being considered is how far a signal can be leveraged through additional funds under management (FUM), before management should consider either closing the fund to new money, or changing the signal and thus the investment process.
- Subjects :
- Transaction cost
040101 forestry
Finance
Management fee
050208 finance
Actuarial science
business.industry
Manager of managers fund
05 social sciences
Economics, Econometrics and Finance (miscellaneous)
Target date fund
04 agricultural and veterinary sciences
Investment (macroeconomics)
Investment management
Accounting
Value (economics)
0502 economics and business
Open-end fund
0401 agriculture, forestry, and fisheries
Portfolio
Asset (economics)
Performance fee
business
Investment fund
Subjects
Details
- ISSN :
- 1467629X and 08105391
- Volume :
- 59
- Database :
- OpenAIRE
- Journal :
- Accounting & Finance
- Accession number :
- edsair.doi.dedup.....31b60ada134d8a5c5a6a7694a0b409d6