Chulalongkorn University Theses and Dissertations (Chula ETD)

Other Title (Parallel Title in Other Language of ETD)

ความสัมพันธ์ระหว่างค่าธรรมเนียมรายปีและผลการดำเนินงานของกองทุนรวมตราสารทุนในประเทศไทย

Year (A.D.)

2020

Document Type

Independent Study

First Advisor

Anirut Pisedtasalasai

Faculty/College

Faculty of Commerce and Accountancy (คณะพาณิชยศาสตร์และการบัญชี)

Department (if any)

Department of Banking and Finance (ภาควิชาการธนาคารและการเงิน)

Degree Name

Master of Science

Degree Level

Master's Degree

Degree Discipline

Finance

DOI

10.58837/CHULA.IS.2020.89

Abstract

This study inclusively examines the relationship between fund fees and performance of open-end domestic equity funds in Thailand from 2010 to 2019 to analyze the domestic-equity fund market in 2 main dimensions: the market competitive and conflict-of-interest between the duties of asset management companies (AMCs) to their parent bank and to unitholders through fund fee channel. The study investigates the relationship of (1) fund fees, (2) fund fees set by bank subsidiaries, and (3) fund fees set by large-bank subsidiaries with its performance in term of both returns over benchmark and Jensen’s alpha. Based on the results, investors paid higher fees to AMCs without compensating the fees with superior performance from investment in Thai domestic-equity funds on average. These also implies the domestic equity funds market is not able to be concluded that the market is highly competitive. For funds managed by bank subsidiaries, the result reports that there is statistically significant in the additional negative impact from the fees set by bank-subsidiaries on the fund performance. Thus, the fees set by bank-subsidiaries do matter as it could higher deteriorate the fund performance. One of underlying concept to explain this is because of bank conglomerate structure in mutual fund market, there is possible that AMCs may involve in the activities such as increase in fund fees collected from unitholders that was beneficial to parent bank in term of increase in its revenue rather than maximizing the interests or fund returns to unitholders. Moreover, to inclusively study in conflict-of-interest issue through fund fee channel, the result significantly shows that investors would significantly pay higher fees especially to non-large bank subsidiaries and not receive superior performance.

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.