Thesis (MComm (Business Management))--University of Stellenbosch, 2006. / ENGLISH ABSTRACT: The study addresses foreign investment in China’s fund–management industry, with a detailed analysis of the opportunities and challenges that foreign investors may face. With the entry of China into the World Trade Organisation (WTO) in 2001, foreign investors have been allowed to hold up to 33% of a joint fund-management firm, which has increased to 49% from the end of 2004. As a trendy investment tool, investment funds, and particularly mutual funds, have expanded significantly especially as regards market size and economic importance in developed economies. This study starts with an introduction to the investment fund, which includes types of investment funds and the advantages of mutual funds. Then, the history of China’s fund-management industry is described to give a brief picture of this nascent industry. In order to justify the promising future for foreign investment in China’s fund-management industry, the study first analyses the sustainability of China’s economic growth, which is driven by some favourable aspects such as the gradual development of an economic structure, continued FDI inflow and WTO membership. Another two specific factors that may be favourable for the fund-management industry in this regard, namely pension fund reform and increased income, are also discussed. Foreign investors in China’s fund-management industry are also exposed to some challenges. For investment funds, the main platform is the financial markets, which means that the development of the fund-management industry is tied closely to the development of the financial markets. In the case of China, the financial markets are still developing and have not grown into efficient capital allocation mechanisms due to the restricted involvement of foreign participants and substantial government intervention. However, this study only focuses on major opportunities and challenges associated with foreign investment in China’s fund-management industry. A detailed analysis of each of various relevant aspects can be conducted in a future study, as well as a pertinent survey.

[pt] Esta dissertação teve como objetivo verificar se a presença de gestores de Fundos de Venture Capital influencia a curva de crescimento de empresas inovadoras, baseado na análise da carteira do Programa INOVAR da Finep – Inovação e Pesquisa. Para tanto, foi elaborado um questionário e enviado para 73 empresas que faziam parte da carteira do Programa INOVAR no final de 2013, das quais 54 (74 porcento) responderam à pesquisa. O questionário procurou avaliar três dimensões principais: Resultados Financeiros, Governança Corporativa e Inovação, além de outros aspectos de características mais gerais, como diferencial competitivo das empresas e aspectos qualitativos da atuação dos gestores no dia-a-dia destas. Em 2013 as empresas pesquisadas apresentaram um faturamento bruto agregado da ordem de 7,870 bilhões de reais, e um lucro líquido de 419 milhões de reais. Os fundos tinham uma participação média de 29,2 por cento do capital social nessas companhias. No que concerne à inovação, 83 por cento das empresas declararam ter inserido produto ou serviço novo no mercado nacional, e 4 por cento afirmaram ter inovado no mercado mundial. Além dos aspectos já mencionados, a maioria dos empreendedores (70 por cento) avalia que o ingresso do fundo em suas empresas promoveu mudanças significativas em seus processos de gestão, cujos efeitos permanecerão mesmo após a saída do fundo. / [en] This study aims to investigate whether the presence of Venture Capital funds managers influence the growth curve of innovative companies based on an analysis of Finep - Innovation and Research- INOVAR Program portfolio companies. For this purpose, a questionnaire was developed and sent to 73 companies that were part of the INOVAR Program portfolio at the end of 2013, and 54 (74 percent) of them responded to the survey. The questionnaire sought to assess three main dimensions: Financial Results, Corporate Governance and Innovation, and other aspects of general characteristics. In 2013 the surveyed companies had aggregated gross revenues of 7,870 billion reais and a net profit of 419 million reais. The funds had an average share of 29.2 per cent of the equity in these companies. With regard to innovation, 83 per cent of the companies reported having inserted new product or service in the domestic market, while 4 per cent said they brought innovation to the world market. Besides the aspects mentioned above, the majority of entrepreneurs (70 per cent) estimates that the contribution of the funds to their companies promoted significant changes in their management processes, whose effects will remain after the exit of the funds.

Pension funds play a large role in the UK pension system since the returns of the funds determine how large the total pension will be. The future retirees can choose between active and passive fund management where the active management often is more expensive. In this study 102 actively managed UK equity pension funds are analyzed in order to see if managers have sufficient skill to generate risk adjusted return to cover the cost imposed on the investors. The result implies that the active pension funds in aggregate, before expenses, hold a portfolio that imitates market returns during 2000 to 2012. Bootstrap simulations suggest that only eight funds out of the sample of 102 have skilled managers and six of these managers are skilled enough to produce risk adjusted excess return large enough to cover the expenses imposed on the investor.

A função de compliance surge da necessidade de conhecer, com mais detalhes, os métodos como os bancos estão atuando nessa atividade. Com a criação do Comitê da Basileia para supervisão bancária, buscou-se fortalecer o sistema financeiro, por meio da maior conceituação sistemática de suas atividades, parametrizando-as pelas boas práticas financeiras e munindo-as de procedimentos prudenciais na sua atuação, abordando exatamente as boas práticas da integração da função de compliance, com as boas práticas de governança corporativa e de gestão de riscos das rotinas bancárias, para realizar todo gerenciamento e monitoramento das atividades. A pesquisa identifica a função de compliance, conceitua, apresentando os riscos, abordando bases para aprofundamento da discussão do tema e esclarecendo as principais atribuições voltadas à gestão de compliance. No discorrer do trabalho, observa-se como o alinhamento dos processos asseguram o cumprimento de normas e procedimentos, que visam, principalmente, a preservar a imagem perante o mercado e agregar valor pela qualidade e velocidade nas interpretações regulatórias das políticas e dos procedimentos de compliance de maneira integrada aos demais pilares da governança corporativa, tais como: (i) melhoria de relacionamento com os acionistas, (ii) melhoria de relacionamento com os clientes, (iii) decisões de negócio em compliance, (iv) velocidade dos novos produtos em conformidade para o mercado, (v) disseminação de elevados padrões éticos/culturais de compliance pela organização. Na sequência, a aplicabilidade dos procedimentos de compliance na gestão de fundos do Banrisul, observando-se a estrutura institucional, a padronização, as rotinas operacionais e seus processos, o tratamento dos relatórios de auditoria e de monitoramento, os pontos de controle, os riscos da não conformidade e as consequências que podem gerar custos de maneira irreversível A fim de que este processo que passa por um planejamento, implantação, verificação e controle das atividades de compliance, tenha sucesso e seja eficaz, é necessário o comprometimento da alta administração e de todos os funcionários, devendo ainda fazer parte da cultura organizacional da instituição. / The compliance function arises from the need to know in more details the methods how banks are performing this activity. With the creation of the Basel Committee on Banking Supervision,it is aimed to strengthen the financial system through greater systematic conceptualization of its activities, parameterizing them by good financial practices and providing them with prudential procedures in its supervisory role, addressing exactly the good practices of integrating compliance function, with good corporate governance and risk management of banking routines, to perform all management and monitoring activities. The research identifies the role of compliance, evaluates, presenting risks, approaching foundations for further discussion of the topic and explaining the major tasks facing the management of compliance. In the discourse of this work, it is observed how the alignment of processes assures the compliance of rules and procedures, which aims primarily to preserve the image in the market and add value for the quality and speed in the regulatory interpretation of policies and the procedures of compliances through an integrated way to the other pillars of corporate governance, such as: (i) improvement of relationship with shareholders, (ii) improving of relationship with customers, (iii) business decisions on compliance, (iv) speed of new products according to the market, (v) dissemination of high ethical / cultural compliance by the organization. In sequence, the applicability of the compliance procedures in managing Banrisul funds, observing the institutional structure, standardization, operational routines and its processes, the treatment of audit reports and monitoring, control points, the risks of non-compliance and the consequences that can generate costs irreversibly. For this process goes through a planning, implementation, verification and control of compliance activities, to succeed and be effective, it requires commitment from top management and all employees and it should be part of the organizational culture of the institution.

A função de compliance surge da necessidade de conhecer, com mais detalhes, os métodos como os bancos estão atuando nessa atividade. Com a criação do Comitê da Basileia para supervisão bancária, buscou-se fortalecer o sistema financeiro, por meio da maior conceituação sistemática de suas atividades, parametrizando-as pelas boas práticas financeiras e munindo-as de procedimentos prudenciais na sua atuação, abordando exatamente as boas práticas da integração da função de compliance, com as boas práticas de governança corporativa e de gestão de riscos das rotinas bancárias, para realizar todo gerenciamento e monitoramento das atividades. A pesquisa identifica a função de compliance, conceitua, apresentando os riscos, abordando bases para aprofundamento da discussão do tema e esclarecendo as principais atribuições voltadas à gestão de compliance. No discorrer do trabalho, observa-se como o alinhamento dos processos asseguram o cumprimento de normas e procedimentos, que visam, principalmente, a preservar a imagem perante o mercado e agregar valor pela qualidade e velocidade nas interpretações regulatórias das políticas e dos procedimentos de compliance de maneira integrada aos demais pilares da governança corporativa, tais como: (i) melhoria de relacionamento com os acionistas, (ii) melhoria de relacionamento com os clientes, (iii) decisões de negócio em compliance, (iv) velocidade dos novos produtos em conformidade para o mercado, (v) disseminação de elevados padrões éticos/culturais de compliance pela organização. Na sequência, a aplicabilidade dos procedimentos de compliance na gestão de fundos do Banrisul, observando-se a estrutura institucional, a padronização, as rotinas operacionais e seus processos, o tratamento dos relatórios de auditoria e de monitoramento, os pontos de controle, os riscos da não conformidade e as consequências que podem gerar custos de maneira irreversível A fim de que este processo que passa por um planejamento, implantação, verificação e controle das atividades de compliance, tenha sucesso e seja eficaz, é necessário o comprometimento da alta administração e de todos os funcionários, devendo ainda fazer parte da cultura organizacional da instituição. / The compliance function arises from the need to know in more details the methods how banks are performing this activity. With the creation of the Basel Committee on Banking Supervision,it is aimed to strengthen the financial system through greater systematic conceptualization of its activities, parameterizing them by good financial practices and providing them with prudential procedures in its supervisory role, addressing exactly the good practices of integrating compliance function, with good corporate governance and risk management of banking routines, to perform all management and monitoring activities. The research identifies the role of compliance, evaluates, presenting risks, approaching foundations for further discussion of the topic and explaining the major tasks facing the management of compliance. In the discourse of this work, it is observed how the alignment of processes assures the compliance of rules and procedures, which aims primarily to preserve the image in the market and add value for the quality and speed in the regulatory interpretation of policies and the procedures of compliances through an integrated way to the other pillars of corporate governance, such as: (i) improvement of relationship with shareholders, (ii) improving of relationship with customers, (iii) business decisions on compliance, (iv) speed of new products according to the market, (v) dissemination of high ethical / cultural compliance by the organization. In sequence, the applicability of the compliance procedures in managing Banrisul funds, observing the institutional structure, standardization, operational routines and its processes, the treatment of audit reports and monitoring, control points, the risks of non-compliance and the consequences that can generate costs irreversibly. For this process goes through a planning, implementation, verification and control of compliance activities, to succeed and be effective, it requires commitment from top management and all employees and it should be part of the organizational culture of the institution.

A função de compliance surge da necessidade de conhecer, com mais detalhes, os métodos como os bancos estão atuando nessa atividade. Com a criação do Comitê da Basileia para supervisão bancária, buscou-se fortalecer o sistema financeiro, por meio da maior conceituação sistemática de suas atividades, parametrizando-as pelas boas práticas financeiras e munindo-as de procedimentos prudenciais na sua atuação, abordando exatamente as boas práticas da integração da função de compliance, com as boas práticas de governança corporativa e de gestão de riscos das rotinas bancárias, para realizar todo gerenciamento e monitoramento das atividades. A pesquisa identifica a função de compliance, conceitua, apresentando os riscos, abordando bases para aprofundamento da discussão do tema e esclarecendo as principais atribuições voltadas à gestão de compliance. No discorrer do trabalho, observa-se como o alinhamento dos processos asseguram o cumprimento de normas e procedimentos, que visam, principalmente, a preservar a imagem perante o mercado e agregar valor pela qualidade e velocidade nas interpretações regulatórias das políticas e dos procedimentos de compliance de maneira integrada aos demais pilares da governança corporativa, tais como: (i) melhoria de relacionamento com os acionistas, (ii) melhoria de relacionamento com os clientes, (iii) decisões de negócio em compliance, (iv) velocidade dos novos produtos em conformidade para o mercado, (v) disseminação de elevados padrões éticos/culturais de compliance pela organização. Na sequência, a aplicabilidade dos procedimentos de compliance na gestão de fundos do Banrisul, observando-se a estrutura institucional, a padronização, as rotinas operacionais e seus processos, o tratamento dos relatórios de auditoria e de monitoramento, os pontos de controle, os riscos da não conformidade e as consequências que podem gerar custos de maneira irreversível A fim de que este processo que passa por um planejamento, implantação, verificação e controle das atividades de compliance, tenha sucesso e seja eficaz, é necessário o comprometimento da alta administração e de todos os funcionários, devendo ainda fazer parte da cultura organizacional da instituição. / The compliance function arises from the need to know in more details the methods how banks are performing this activity. With the creation of the Basel Committee on Banking Supervision,it is aimed to strengthen the financial system through greater systematic conceptualization of its activities, parameterizing them by good financial practices and providing them with prudential procedures in its supervisory role, addressing exactly the good practices of integrating compliance function, with good corporate governance and risk management of banking routines, to perform all management and monitoring activities. The research identifies the role of compliance, evaluates, presenting risks, approaching foundations for further discussion of the topic and explaining the major tasks facing the management of compliance. In the discourse of this work, it is observed how the alignment of processes assures the compliance of rules and procedures, which aims primarily to preserve the image in the market and add value for the quality and speed in the regulatory interpretation of policies and the procedures of compliances through an integrated way to the other pillars of corporate governance, such as: (i) improvement of relationship with shareholders, (ii) improving of relationship with customers, (iii) business decisions on compliance, (iv) speed of new products according to the market, (v) dissemination of high ethical / cultural compliance by the organization. In sequence, the applicability of the compliance procedures in managing Banrisul funds, observing the institutional structure, standardization, operational routines and its processes, the treatment of audit reports and monitoring, control points, the risks of non-compliance and the consequences that can generate costs irreversibly. For this process goes through a planning, implementation, verification and control of compliance activities, to succeed and be effective, it requires commitment from top management and all employees and it should be part of the organizational culture of the institution.

Bakgrund: Det finns idag ett stort utbud av hållbara fonder på den svenska marknaden och intresset för att investera hållbart ökar. Dock finns det inte någon entydig definition av hållbarhet och därmed blir innebörden av ”hållbar fondförvaltning” diffus. Det har i tidigare studier inte analyserats hur begreppsproblematiken påverkar den svenska marknadens aktörer och fondutbud och det var därför av intresse att undersöka hur aktörer på fondmarknaden ser på problematiken och hur den hanteras. Syfte: Uppsatsens syfte är att utifrån ett institutionellt perspektiv undersöka vilka problem och möjligheter som oklarheter gällande begreppet ”hållbar fondförvaltning” skapar för svenska fondförvaltare och fondbolag i relation till dess kunder. Studien ämnar även analysera hur begreppsproblematiken samt informationsasymmetrier mellan fondförvaltare och kund påverkar fondutbud och förvaltningsstrategier i relation till hållbarhet. Genomförande: En kvalitativ metod har används för att besvara studiens syfte. Utifrån tidigare forskning gällande hållbarhet och institutionell teori utvecklades en för studien unik analysmodell som låg till grund för utformandet av intervjumallar och analys av det insamlade empirimaterialet. Totalt genomfördes tio semistrukturerade intervjuer med kapitalägare, representanter från svenska fondbolag, en intresseorganisation samt tillsynsmyndighet. Slutsats: Studien visar att begreppsproblematiken på den hållbara fondmarknaden skapar stora informationsasymmetrier mellan fondförvaltare och kunder, vilket innebär att förvaltares möjligheter att påvisa kvalitet försvåras. Då det är svårt för kunder att avgöra kvalitetsskillnader finns det utrymme för strategiskt beteende på marknaden och för att minska problematiken kring informationsasymmetrier krävs det att det institutionella ramverket utvecklas. / Background: There is currently a large supply of sustainable funds on the Swedish fund market and a growing interest for sustainable investing. However there is no consensus regarding the definition of sustainability and therefore the term “sustainable fund management” becomes vague. The effects that this conceptual problem has on the Swedish fund management and fund markets have not been analysed in previous studies, therefore it was interesting to examine how market participants perceive and handle the problem. Aim: The purpose of this study is to, from an institutional perspective, examine which problems and opportunities that uncertainties regarding the concept “Sustainable fund management” create for Swedish fund fiduciaries and fund management companies in relation to its clients. In addition, the paper aims to analyse how conceptual problems and information asymmetries between fund fiduciaries and clients affect fund offerings and investment strategies in relation to sustainability. Completion: To fulfil the aim of this study a qualitative method has been applied. A unique model has been created to construct the interview template and to analyse the empirical findings. The model was based on previous research regarding sustainability and institutional theory. In total, ten semi structured interviews were conducted with asset owners, representatives from Swedish fund management companies, one sustainable investment association and Sweden’s financial supervisory authority. Conclusion: The study shows that the conceptual problem on the sustainable fund market creates large information asymmetries between fund fiduciaries and customers. Therefore proving fund quality becomes more complex for fund fiduciaries. Due to the fact that it is hard for customers to determine differences in quality, there is room for strategic behaviour. In order to decrease the problems regarding information asymmetries, the institutional framework needs to be developed.

In Sweden, savings in funds today is one of the most popular forms of savings. Through both active and passive choices, almost all Swedes are exposed to the fund market, where mutual funds are the most popular type of funds. A clear majority of these funds are actively managed, which means that one or more fund managers actively work with the investments of the funds, with the aim to outperform the market. This method of management has been hotly debated in recent years, when many scientists claim that fund managers generally fail to outperform the market in long term. At the same time, interest in sustainability investments has increased in recent years, which is reflected in the fund market where sustainability funds have become increasingly popular. This essay therefore focuses on these sustainability funds, with focus on comparing large banks with web-based fund companies. The large banks in Sweden have been criticized for the way they are working seen from a customer perspective, but their funds are still very popular. Against this background, the study aims to investigate whether one can find any differences in performance of actively managed sustainability funds between large banks and web-based fund companies. Using four different models to measure risk-adjusted return of security portfolios, the funds have been examined to see if it is possible to find any patterns in terms of performance and the type of company that manages the funds. The survey results show that there is a clear difference in performance between the large banks and the web-based fund companies, whereby the latter succeed much better. Of the four models used, the large banks do not outperform the market under one model, while the web-based companies manage to outperform the market according to three of the models. Thus it can be stated that if you are interested in saving money in actively managed sustainability funds, it is the web-based companies to turn to. As previously mentioned, the large banks funds are very popular, which means that Swedish private investors have much money to gain by allowing web-based companies to manage their money, rather than large banks.

I decennier har problematiken kring förvaltning belysts och i mångt och mycket har motpolerna aktiv- och passiv förvaltning jämförts. Tidigare forskning har påvisat att passiv förvaltning är att föredra framför aktiv förvaltning, bland annat på grund av de dyra förvaltningsavgifterna samt att förespråkarna antar en effektiv marknad. Ämnesområdet är ett väl utforskat område dock i högsta grad aktuellt. Tidigare forskning har inte belyst aktivitetsgraden i aktivt förvaltade fonder och därmed gavs implikation till fortsatt analysområde för den här studien. Syftet med uppsatsen är att analysera om aktivitetsgraden i aktivt förvaltade fonder kan förklara den riskjusterade avkastningen med hänsyn tagen till förvaltningsavgiften. En deduktiv ansats kommer tillämpas för utveckling av existerande teori. Utifrån uppsatsens syfte har en kvantitativ metod tillämpats för att analysera information som tilldelats av fondbolagens fondrapporter för att genomföra tester på olika tidsperioder. Uppsatsens resultat grundas på 81 aktivt förvaltade fonder vilka indikerar att det ej går att påvisa att en högre aktivitetsgrad leder till en högre riskjusterad avkastning. Likaså kan inte en högre förvaltningsavgift motiveras av aktivitetsgraden. Utfallet av analyserna beskrivs genom tabeller för att visualisera de statistiska analyserna. Förslag till fortsatt forskning inkluderar undersökning av vad fondbolagen definierar som krav för att klassificeras som aktivt förvaltade fonder. Utifrån att aktivitetsgraden är en ny infallsvinkel i utvärdering av aktiv förvaltning torde studiens resultat vara av intresse för gemene man då vi alla är investerare mer eller mindre i det privata livet. Investerare antas vara intresserade att veta vad som motiverar den höga förvaltningsavgiften samt hur investerade pengar blir förvaltade då konklusionen av studien är att aktivitetsgraden inte ger mervärde. / For decades, the problem of portfolio management has been discussed, specifically the comparisons between the opposite poles ‘active’ and ‘passive’ management. Previous research has shown that passive management is preferred over active management, predominantly because of the expensive management fees, as well as proponents assuming an efficient market. The subject area is a well- explored area yet, highly relevant. Previous research has not highlighted the trading frequency in actively managed funds and an implication for further analysis within this area was given. The purpose of this paper is to analyze whether the frequency of trade in actively managed funds may explain the risk-adjusted return, taking into account the management fees. A deductive approach will be applied to the development of existing theory. Based on the thesis purpose, a quantitative method was applied. As well as analyzing the information assigned by the mutual fund companies’ fund reports for conducting tests at different time periods. Results of the thesis are based on 81 actively managed funds, indicating that it is not possible to reveal that, a higher frequency of trade will lead to a higher risk-adjusted return. Likewise, a higher management fee is not justified by the level of activity. The outcomes of the analysis are depicted through tables to provide a visualization of the statistical and analytical questions explored. Suggestions for future research include; consideration of what the fund companies define as requirements that will be classified as actively managed funds. Based on the above notions the frequency of trade is a new approach to the evaluation of active management. Investors are presumed to have a known interest in what stimulates high management fees and how the money invested will be managed. With respect to the conclusion of this study; the level of the frequency in trade does not add any value.

Bakgrund: Utbredningen av dolda indexfonder har visat sig starkt relaterat till ett lands regelverk och avsaknad av konkurrens på fondmarknaden i form av uttalade indexfonder (Cremers et al. 2013). Då Sverige är ett av de länder som placerar sig i topp vad gäller utbredning av dolda indexfonder (Cremerset al. 2013), är detta remarkabelt med tanke på att Sverige har ett effektivt och välfungerande juridisktsystem (Heritage Foundation 2016). Detta har föranlett oss att undersöka förekomsten av doldaindexfonder i Sverige, samt identifiera och analysera möjliga orsaker till val av aktivitetsgrad utifrånsåväl yttre som inre faktorer. Syfte: Uppsatsen syfte är att med anledning av att det framkommit att dolda indexfonder är vanligt förekommande på den svenska fondmarknaden, undersöka aktivitetsgraden i svenska aktiefonder, samt identifiera och analysera möjliga orsaker till val av aktivitetsgrad. Genomförande: Studien genomförs med ett kvantitativt angreppssätt för att möjliggöra ett statistiskt säkerställt resultat kring aktiviteten på den svenska fondmarknaden. Aktivitetsgraden på den svenskafondmarknaden mäts, genom active share, för att sedan ligga till grund för tester angående hur olika karaktärsdrag påverkar en fonds aktivitet. Avslutningsvis undersöks hur studiens resultat kan kopplas till de spelregler som gäller på den svenska fondmarknaden. Slutsats: Studiens resultat visar på att drygt hälften, 52 %, av de påstått aktivt förvaltade fonderna under mätperioden 2005-2015, i själva verket är att betrakta som dolda indexfonder. Resultatet visar dock också på att det under mätperioden skett en kraftig förbättring av fonders aktivitetsgrad, samt att fler fonder förvaltas aktivt på den svenska marknaden. Fondens inriktning, såväl som om fonden är förvaltad av en storbank, har en signifikant negativ påverkan på fondens aktivitet. Det kan till stor del förklaras av att rådande regelverk och den svenska aktiemarknadens storlek, indirekt uppmuntrar fonder till en lägre aktivitetsgrad. / Background: The existence of closet index funds has been shown highly correlated to regulations andcompetition of explicit index funds on a market (Cremers et al. 2013). Despite its strong regulations andpresence of explicit index funds, studies have shown that Sweden has a high amount of closet indexfunds. This fact has led to our interest in examining the presence of closet index funds on the Swedish market, and to try to identify and analyze potential characteristics of a fund that affect its choice ofactivity rate. Aim: The aim of the study is, by reason of the proven high presence of closet index funds on the Swedish market, to examine the activity rate within the funds, and to identify and analyze potential characteristics that affects it. Completion: The study is conducted through quantitative research. The activity rate of the fund marketis measured through active share and then analyzed for how different characteristics influence the funds activity rate. Eventually the results of the study are being analyzed for if and how they are concatenated to the rules of the Swedish fund market. Conclusion: The result of the study shows that 52 % of the predicated actively managed funds were actually proven to be closet index funds. However, the result also shows that the degree of active share has generally risen, and that more funds are being actively managed in Sweden. The alignment of the fund, as well as if the fund is managed by a major bank, are proven to have a significant negative impactof the activity of the fund. This negative relationship is largely linked to the regulations as well as the size of the Swedish stock market, which creates incentives for low activity of the funds.