Abstract
References
- Adkisson, J., A. and Fraser, D., R. (2003). Reading The Stars: Age Bias in Morningstar Ratings, Financial Analyts Journal, V.59, N.5, pp.24-27.
- Aksoy, A. and Tanrıöven, C. (2007). Sermaye Piyasası Yatırım Araçları ve Analizi, 3. Baskı, Gazi Yayınevi, Ankara.
- Antypas, A. Caporale, G., M., Kaurogenis, N. and Pittis, N. (2009) Selectivity, Market Timing and the Morningstar Rating-System, http://hdl.handle.net/10419/26625, pp.1-31, (20.10.2017).
- Apak, S. and Taşçıyan K., H. (2009). Morningstar Yıldız Derecelendirme Sistemi ile Türk Emeklilik Yatırım Fonlarının Performanslarının Değerlendirilmesi, MUFAD, ss. 80-90.
- Ayaydın, H. (2013). Türkiye ’deki Emeklilik Yatırım Fonlarının Performans Analizi, Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, C.22, S.2, ss. 59-80.
- Barron, J. and Ni J. (2013). Morningstar Rating and Mutual Fund Manager Turnover, Journal of Applied Finance, V.23 N.1, pp.95-110.
- Black, C., R. and Morey, M., R. (2000). Morningstar Ratings and Mutual Fund Performance, The Journal of Financial and Quantitative Analysis, V.5, N.3, pp. 451-483.
- Bolster, P., J. , Trahan, E., A., Wang, P. (2016). Assessing Performance of Morningstar’s Star Rating System for Equity İnvestment, Journal of Economic & Financial Studies, V.4, N.01, pp.11-22.
- Blume, M., E. (1998). An Anatomy of Morningstar Ratings, Financial Analyts Journal, V.54, N.2, pp.19-27.
- Choivetthamrong, C. (2015). The Performance of Thai Mutual Funds: A 5-Star Morningstar Mutual Fund Rating, Journal of Economics, Business and Management, V.3, N.1, pp.1-7.
- Civan, M. (2010). Sermaye Piyasası Analizleri ve Portföy Yönetimi, I. Basım, Ekin Yayınevi, Bursa.
- Gerrans, P. (2006). Morningstar Ratings and Future Performance, Accounting and Finance, V.46, N.4, pp.605-628.
- Guercio, D., D. and Tkac, P., A. (2001). Star Power: The Effect of Morningstar Ratings on Mutual Fund Flows, Federal Reserve Atlanta Workingpaper Series, 2001-15, pp. 1-49.
- Jensen, M., C. (1968). The Performance of Mutual Funds in the Period 1945-1964, The Journal of Finance, V.23, N.2, pp. 349-416.
- Kaur, J. ve Liu, L. (2010). Predictability of Morningstar rating for future performance on Canadian mutual funds. Simon Fraser University FRM Research Project, pp.1-29.
- Knuutila, M., Puttonen, V. and Smythe, T. (2007). The Effect of Distribution Channels on Mutual Fund Flows, Journal of Financial Services Marketing, V.12, N.1, pp.88-96.
- Loviscek, A., L. and Jordan, J. (2000). Stock Selection Based or Morningstar’s Ten-Year, Five-Star General Equity Mutual Funds, Financial Services Review, V.9, pp.145-157.
- Morey, M., R and Vinod, H., D. (2001). Estimation Risk in Mutual Fund Ratins: The Case of Morningstar, https://papers.ssrn.com/so13/papers.cfm?abstract_id=2702348rec=18srcabs= 4552408alg=18pos=3, pp.1-18, ( 01.10.2017).
- Morey, M., R. (2002). Mutual Fund Age and Morningstar Ratings, Financial Analysts Journal, V.58, N.2, pp.56-63.
- Morey, M., R. (2003). The Kiss of Death: A 5-star Morningstar Mutual Fund Rating, SSRN Electronic Journal, https://ssrn.com/abstract=455240, (01.10.2017)
- Morey, M., R. and Gottesman, A., A. (2006). Morningstar Mutual Fund Rating Redux, SSRN Electronic Journal, https://www.ssrn.com/abstract=890128, (01.10.2017).
- Sharpe, W., F. (1966). Mutual Fund Performance, Journal of Business, V.39, N.1, pp.119-138.
- Sındell, K. (2005). Investing Online for Dummies, 5th Edition, Wiley Publishing, New Jersey.
- Treynor, J., L. (1965). How to Rate Management of Investment Funds, Harvard Business Review, V.43, N.1, pp. 63-75.
- www.spk.gov.tr/Sayfa/AltSayfa/253, Date of access: 12.12.2017
- https://www. spk.gov.tr, Date of access:10.12.2017
Abstract
Purpose - Different types of funds exist depending on the assets
the portfolio is composed of. The main types of funds include; bond umbrella
funds, equity umbrella funds, precious metal umbrella fund, fund basket
umbrella funds, money market umbrella funds, participation umbrella fund,
balanced umbrella funds, free umbrella funds, guaranteed umbrella fund,
umbrella fund for protection purposes.The subject of our study is equity
umbrella funds. These kinds of funds receive at least 80% of the share of
investment by domestic and/foreign issuers. Purpose of this study is evaluating
the performance of 57 Turkish equity umbrella funds which operate continuously
between January 2012-December 2016 by using Morningstar rating system.
Methodology - The Morningstar (star) rating system, which has proven
to be an effective system for ranking mutual funds, has become the focus of
both academic work and applications. This system, developed by Morningstar,
ranks the performance results of mutual funds by assigning them 1 to 5 stars
according to their adjusted risks.
Findings - The results of the study reveal a lack of effective
management of the equity umbrella funds, and that they perform below Treasury
bond yields. The mutual funds, consequently, showed overall negative Morningstar
performance results. It was determined that while foreign equity weighted
mutual funds are more successful, mutual funds that invest in equity in the
index are not quite successful. Conclusion-
The study used the Morningstar rating system to evaluate 57 equity umbrella
funds operating in Turkey between the periods of January 2012 and December
2016. The results obtained in the study regarding performance rankings and
performance are not meant as a prediction of the future performance of the
concerned funds, they are only intended to assess the value of the equity
umbrella funds at a specific period in the past using an internationally
accepted rating system. The data
obtained indicated that the equity umbrella funds have an overall negative
Morningstar performance.
umbrella funds are considered to be underperforming since they performed poorly
compared to the Treasury bills used in the study. Under the assumption that
past performance results will continue in the future, it is thought that the
results are meaningful and should be followed.
References
- Adkisson, J., A. and Fraser, D., R. (2003). Reading The Stars: Age Bias in Morningstar Ratings, Financial Analyts Journal, V.59, N.5, pp.24-27.
- Aksoy, A. and Tanrıöven, C. (2007). Sermaye Piyasası Yatırım Araçları ve Analizi, 3. Baskı, Gazi Yayınevi, Ankara.
- Antypas, A. Caporale, G., M., Kaurogenis, N. and Pittis, N. (2009) Selectivity, Market Timing and the Morningstar Rating-System, http://hdl.handle.net/10419/26625, pp.1-31, (20.10.2017).
- Apak, S. and Taşçıyan K., H. (2009). Morningstar Yıldız Derecelendirme Sistemi ile Türk Emeklilik Yatırım Fonlarının Performanslarının Değerlendirilmesi, MUFAD, ss. 80-90.
- Ayaydın, H. (2013). Türkiye ’deki Emeklilik Yatırım Fonlarının Performans Analizi, Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, C.22, S.2, ss. 59-80.
- Barron, J. and Ni J. (2013). Morningstar Rating and Mutual Fund Manager Turnover, Journal of Applied Finance, V.23 N.1, pp.95-110.
- Black, C., R. and Morey, M., R. (2000). Morningstar Ratings and Mutual Fund Performance, The Journal of Financial and Quantitative Analysis, V.5, N.3, pp. 451-483.
- Bolster, P., J. , Trahan, E., A., Wang, P. (2016). Assessing Performance of Morningstar’s Star Rating System for Equity İnvestment, Journal of Economic & Financial Studies, V.4, N.01, pp.11-22.
- Blume, M., E. (1998). An Anatomy of Morningstar Ratings, Financial Analyts Journal, V.54, N.2, pp.19-27.
- Choivetthamrong, C. (2015). The Performance of Thai Mutual Funds: A 5-Star Morningstar Mutual Fund Rating, Journal of Economics, Business and Management, V.3, N.1, pp.1-7.
- Civan, M. (2010). Sermaye Piyasası Analizleri ve Portföy Yönetimi, I. Basım, Ekin Yayınevi, Bursa.
- Gerrans, P. (2006). Morningstar Ratings and Future Performance, Accounting and Finance, V.46, N.4, pp.605-628.
- Guercio, D., D. and Tkac, P., A. (2001). Star Power: The Effect of Morningstar Ratings on Mutual Fund Flows, Federal Reserve Atlanta Workingpaper Series, 2001-15, pp. 1-49.
- Jensen, M., C. (1968). The Performance of Mutual Funds in the Period 1945-1964, The Journal of Finance, V.23, N.2, pp. 349-416.
- Kaur, J. ve Liu, L. (2010). Predictability of Morningstar rating for future performance on Canadian mutual funds. Simon Fraser University FRM Research Project, pp.1-29.
- Knuutila, M., Puttonen, V. and Smythe, T. (2007). The Effect of Distribution Channels on Mutual Fund Flows, Journal of Financial Services Marketing, V.12, N.1, pp.88-96.
- Loviscek, A., L. and Jordan, J. (2000). Stock Selection Based or Morningstar’s Ten-Year, Five-Star General Equity Mutual Funds, Financial Services Review, V.9, pp.145-157.
- Morey, M., R and Vinod, H., D. (2001). Estimation Risk in Mutual Fund Ratins: The Case of Morningstar, https://papers.ssrn.com/so13/papers.cfm?abstract_id=2702348rec=18srcabs= 4552408alg=18pos=3, pp.1-18, ( 01.10.2017).
- Morey, M., R. (2002). Mutual Fund Age and Morningstar Ratings, Financial Analysts Journal, V.58, N.2, pp.56-63.
- Morey, M., R. (2003). The Kiss of Death: A 5-star Morningstar Mutual Fund Rating, SSRN Electronic Journal, https://ssrn.com/abstract=455240, (01.10.2017)
- Morey, M., R. and Gottesman, A., A. (2006). Morningstar Mutual Fund Rating Redux, SSRN Electronic Journal, https://www.ssrn.com/abstract=890128, (01.10.2017).
- Sharpe, W., F. (1966). Mutual Fund Performance, Journal of Business, V.39, N.1, pp.119-138.
- Sındell, K. (2005). Investing Online for Dummies, 5th Edition, Wiley Publishing, New Jersey.
- Treynor, J., L. (1965). How to Rate Management of Investment Funds, Harvard Business Review, V.43, N.1, pp. 63-75.
- www.spk.gov.tr/Sayfa/AltSayfa/253, Date of access: 12.12.2017
- https://www. spk.gov.tr, Date of access:10.12.2017
Details
| Primary Language | English |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | March 30, 2018 |
| Published in Issue | Year 2018 Volume: 5 Issue: 1 |
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