Strategies for Asset Management of Investment Funds from the Point of View of the Transaction Costs Theory and Corporate Governance

Alexander A. Metzger
Year: 2017
DOI:
UDK: 330.322
Pages: 6-15
Language: russian
Section: Economics
Keywords: investment fund, investment fund strategy, passive management, active management, benchmark, market yield, control alpha, smart beta, index investment, index fund, Exchange Traded Fund (ETF), managers, investors, Management Company, agency problem, opportunism of managers, corporate governance, corporate governance model, effective market, transaction costs, internal costs, external costs, hierarchy, market, management company remuneration, outsider model, insider model.
Abstract
The methodological issues of strategy formation for asset management of investment fund are considered. The author voices the hypothesis about the choice of active or passive asset management, depending on the level of aggregate transaction costs of asset management, bearing in mind the nature of the investment market and the composition of investment as well. The analysis of transaction costs of asset management of the investment fund allows to formulate the conditions for successful application either active or passive management strategy. The mechanism of transaction control costs growth as a manifestation of managerial opportunism is considered, and corporate governance models that reduce these costs are proposed.
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