Measuring Managerial Skills of Closed-End Mutual Funds in Bangladesh and Its Linkage to the Management Fee Meher Nigar Mila

Measuring Managerial Skills of Closed-End Mutual Funds in Bangladesh and Its Linkage to the Management Fee

Author (s)

Meher Nigar Mila

Abstract

This report mainly focuses on identifying the managerial skills of fund managers, asset management companies in managing closed-end mutual funds of Bangladesh those are floated during 2013 to 2019 and which allowed to review the management fee system in the mutual fund industry. The analysis found that six fund managers have positive alphas or can produce an abnormal return, which is significant, six other fund managers can be called neither significant nor worst and seven other fund managers have negative alphas or cannot earn excess return due to the lack of managerial skills which are not significant statistically. The highest value in R-square refers that the movement of these mutual funds can be explained not only by the market index but also by the other three factors. It can be concluded that some fund managers have managerial skills, and some don’t have skills, but the current management fee structure system of Bangladesh is counterproductive. This report finds that the seven fund managers with negative alpha, get the same or higher management fees just like the fund managers of positive alpha.

 Keywords: Managerial Skills, Closed-End Mutual Fund, Management Fee, Carhart model, Abnormal return, Asset management.

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Title: Measuring Managerial Skills of Closed-End Mutual Funds in Bangladesh and Its Linkage to the Management Fee
Author: Meher Nigar Mila
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4013900
Media: Online
Volume: 4
Issue: 10
Acceptance Date: 29/08/2020
Date of Publication: 03/09/2020
PDF URL: https://ijsab.com/wp-content/uploads/596.pdf
Free download: Available
Page: 1-15
First Page: 1
Last Page: 15
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Meher Nigar Mila (2020). Measuring Managerial Skills of Closed-End Mutual Funds in Bangladesh and its Linkage to the Management Fee. International Journal of Science and Business, 4(10), 1-15. doi: https://doi.org/10.5281/zenodo.4013900

Retrieved from https://ijsab.com/wp-content/uploads/596.pdf

 

 

About Author (s)

Meher Nigar Mila,Department of Finance, University of Dhaka, Bangladesh.

 

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DOI: https://doi.org/10.5281/zenodo.4013900

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