Market timing and selection skills of fund managers: are managerial skills of Shariah-compliant and socially responsible funds any different?
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We assess the managerial skills of globally invested 686 ethical funds taking into consideration the macroeconomic efficiency and fund inflows/outflows. It was observed that managers exhibit negative selection and market timing skills but no consistent pattern for style timing. A cursory glance at the literature indicates little support for superior managerial abilities, especially in terms of timing skills. Notwithstanding, some have highlighted the importance of including fund flows in the traditional models and argue that excluding it can lead to spurious timing skills (Bollen and Busse, 2001). The findings indicate that the investors increase their exposure to funds during a bullish period and reduce it during a bearish period.
Managerial skills , Manager , Market timing , Selection , Socially responsible funds (SRFs) , Shariah-compliant funds (SCFs)
Naeem Azmi, Choudhary Wajahat and Ramadili Mohd, Shamsher Mohamad and Mohd Rasid, Mohamed Eskandar Shah. (2018). Market timing and selection skills of fund managers: are managerial skills of Shariah-compliant and socially responsible funds any different? CIAWM Bulletin, 3 (2017), pp. 3-4.
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