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

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

International Journal of Science and Business, 2020, vol. 4, issue 10, 1-15

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 (search for similar items in EconPapers)
Date: 2020
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