Cost of Active Management in Polish Investment Funds
The article presents a study on the costs of active management based on five different measures: the active expense ratio, the active fee, the new active fee, the active to passive fee, and the maximum acceptable fee (MAF) ratio. There are two main objectives of the article. The first one is to indi...
| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Collegium of Economic Analysis, SGH Warsaw School of Economics
2022-09-01
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| Series: | Gospodarka Narodowa. The Polish Journal of Economics |
| Subjects: | |
| Online Access: | https://gnpje.sgh.waw.pl/Cost-of-Active-Management-in-Polish-Investment-Funds,151791,0,2.html |
| _version_ | 1797997636511334400 |
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| author | Artur Trzebiński |
| author_facet | Artur Trzebiński |
| author_sort | Artur Trzebiński |
| collection | DOAJ |
| description | The article presents a study on the costs of active management based on five different
measures: the active expense ratio, the active fee, the new active fee, the active
to passive fee, and the maximum acceptable fee (MAF) ratio. There are two main
objectives of the article. The first one is to indicate which measure is best in estimating
the costs of active management. The second one is to check whether the
costs incurred are related to the value added for investors. In the study, 34 Polish
equity mutual funds are evaluated. Based on the obtained results, it can be concluded
that two measures, the active to passive ratio and the MAF ratio, provide
the most practical information. What’s more, active management does not generate
any excess returns. On the contrary, a reduction can be observed. |
| first_indexed | 2024-04-11T10:35:59Z |
| format | Article |
| id | doaj.art-9da79874a7e44fc28dee54fbfe4d18e6 |
| institution | Directory Open Access Journal |
| issn | 2300-5238 |
| language | English |
| last_indexed | 2024-04-11T10:35:59Z |
| publishDate | 2022-09-01 |
| publisher | Collegium of Economic Analysis, SGH Warsaw School of Economics |
| record_format | Article |
| series | Gospodarka Narodowa. The Polish Journal of Economics |
| spelling | doaj.art-9da79874a7e44fc28dee54fbfe4d18e62022-12-22T04:29:18ZengCollegium of Economic Analysis, SGH Warsaw School of EconomicsGospodarka Narodowa. The Polish Journal of Economics2300-52382022-09-0131139310210.33119/GN/151791151791Cost of Active Management in Polish Investment FundsArtur Trzebiński0https://orcid.org/0000-0002-1448-454XDepartment of Banking, Wrocław University of Economics and Business, PolandThe article presents a study on the costs of active management based on five different measures: the active expense ratio, the active fee, the new active fee, the active to passive fee, and the maximum acceptable fee (MAF) ratio. There are two main objectives of the article. The first one is to indicate which measure is best in estimating the costs of active management. The second one is to check whether the costs incurred are related to the value added for investors. In the study, 34 Polish equity mutual funds are evaluated. Based on the obtained results, it can be concluded that two measures, the active to passive ratio and the MAF ratio, provide the most practical information. What’s more, active management does not generate any excess returns. On the contrary, a reduction can be observed.https://gnpje.sgh.waw.pl/Cost-of-Active-Management-in-Polish-Investment-Funds,151791,0,2.htmlactive shareinvestment fundsmutual fundscloset indexingactive portfolio management |
| spellingShingle | Artur Trzebiński Cost of Active Management in Polish Investment Funds Gospodarka Narodowa. The Polish Journal of Economics active share investment funds mutual funds closet indexing active portfolio management |
| title | Cost of Active Management in Polish Investment Funds |
| title_full | Cost of Active Management in Polish Investment Funds |
| title_fullStr | Cost of Active Management in Polish Investment Funds |
| title_full_unstemmed | Cost of Active Management in Polish Investment Funds |
| title_short | Cost of Active Management in Polish Investment Funds |
| title_sort | cost of active management in polish investment funds |
| topic | active share investment funds mutual funds closet indexing active portfolio management |
| url | https://gnpje.sgh.waw.pl/Cost-of-Active-Management-in-Polish-Investment-Funds,151791,0,2.html |
| work_keys_str_mv | AT arturtrzebinski costofactivemanagementinpolishinvestmentfunds |