Submitted by Carina Rizzi (carina.rizzi@fgv.br) on 2016-10-20T13:31:32Z No. of bitstreams: 1 Federico_RIVA_Final_Version_FGV.pdf: 869421 bytes, checksum: 3ae1d66c6fc26adc451331c13a55b1a4 (MD5) / Approved for entry into archive by Ana Luiza Holme (ana.holme@fgv.br) on 2016-10-20T13:33:47Z (GMT) No. of bitstreams: 1 Federico_RIVA_Final_Version_FGV.pdf: 869421 bytes, checksum: 3ae1d66c6fc26adc451331c13a55b1a4 (MD5) / Made available in DSpace on 2016-10-20T13:36:01Z (GMT). No. of bitstreams: 1 Federico_RIVA_Final_Version_FGV.pdf: 869421 bytes, checksum: 3ae1d66c6fc26adc451331c13a55b1a4 (MD5) Previous issue date: 2016 / The size of mutual funds throughout the world reached $33.4 trillion in terms of assets under management in 2015. Part of these funds is invested directly or on behalf of private investors whose aim is to secure their future financial wealth. I have been following a stream of literature from the 1980’s that focuses on the relation between dividends stability and returns for equities. A recent research analyzes the benefits of maximizing returns from income such as dividend-paying stocks and coupon-bearing bonds in the attempt of improving the performance of the portfolio. The theory is that focusing on stable dividend-paying stocks, the investor is able to gain exposure to healthy and prosperous firms. Ultimately, this should provide the investor with a smaller exposure to risk thanks to a constant stream of cash flows from dividends. This strategy would be beneficial to highly risk-averse investors. / O tamanho de fundos mútuos ao redor do mundo alcançou $33.4 trilhões em termos de AUM em 2015. Parte destes fundos é investida diretamente ou em nome de investidores privados cujo objetivo é preserver a riqueza financeira futura deles/delas. Eu procurei referências literárias desde 1980 que foca na relação entre a estabilidade de dividendos e os lucros para ações ordinárias. Uma recente pesquisa analisa os benefícios de maximizar lucros de renda como ações com dividendos e tÍtulos com cupom na tentativa de melhorar o desempenho da carteira. A teoria é aquela enfocação em ações com dividendos estáveis, o investidor pode ganhar exposição a empresas saudáveis e prósperas. No final das contas, isto deveria proporcionar o investidor uma menor exposição a risco graças à estabilidade nos fluxos provenientes de dividendos. Essa estratégia seria benéfica a investidores com uma alta aversão ao risco.

Households are nowadays required to make financial decisions of increasing complexity in an increasing number of domains. This thesis explores psychological mechanisms, behavior change interventions, and potential inhibitory factors underlying wise household financial decisions in the domains of gambling advertising and mutual fund investing. In-depth investigations of these two domains were chosen to balance the depth of topic coverage versus the wide breadth of modern financial decision making. UK soccer gambling advertising was investigated via two observational studies and a range of online experiments. The experiments found that soccer fans struggle to form coherent expectations for the complex bets featuring in UK soccer gambling advertising. Mutual fund investors have to balance a number of cues in their investment choices. Normatively, mutual fund investors should minimize fees. However, a number of investors choose to maximize past returns instead. Three chapters investigate how mutual fund fees and financial percentage returns are psychologically processed, in order to uncover beneficial behavior change interventions. Many participants processed percentages additively, rather than follow the correct multiplicative strategy. Both percentages and corresponding “small” currency amounts were associated with systematic biases. Participant responses were closest to the normative strategy when either past returns were framed as a “small” currency amount, or when fees were framed as a 10 year currency amount. “Some people invest based on past performance, but funds with low fees have the highest future results” was the most effective disclaimer at nudging fee-sensitivity against the real world status quo, “Past performance does not predict future results.”

The insurance market offers a large scale of different types of insurance products. Insurance companies offer products ranging from property insurance, airport and air meeting as well as different types of life and non-life insurance. The client has the possibility to choose a product that fully meets his needs. Endowment of Unit linked insurance are one of the most used insurances in the field of life insurances. Endowment insurance is an older product, which is for a long time on the market, but with its construction does not allow the client to be engaged and have the possibility to influence the distribution of the insurance money at any time during the duration of the contract. Therefore the insurance companies came up with a new and very flexible life insurance, which fully suits the needs of present clients and gives them the possibility to be engaged and co-determine on their finances. Unit Linked Insurance is the very life insurance. Comparison of these two types of life insurance is the objective of this presented work. It describes the differences of the two insurances, what are their advantages or disadvantages, but also it determines the possibility of combination of Unit linked insurance with cooperation with mortgage credit. Further it also describes what is important and how to setup the Unit linked insurance so that the bank will accept it as a possible funding of housing.

O investimento de impacto é um conceito intermediário entre investimento tradicional e filantropia, e ainda representa uma fração pequena dos valores movimentados nas outras duas áreas. No entanto, é uma área que vem crescendo muito rapidamente e ganhando adeptos não só entre as organizações sociais, mas também nos mercados privado e governamental, e estima-se que essa modalidade de investimento possa movimentar cerca de um trilhão de dólares em 2020. Se o grande diferencial entre o investimento de impacto e o tradicional é justamente o impacto positivo gerado, para que o desenvolvimento do campo seja efetivo, urge um melhor entendimento do que é este impacto e como avaliá-lo. Assim, com a visão de contribuir com a discussão acerca da avaliação do impacto social na seara dos investimentos de impacto, o presente trabalho buscou responder à questão de pesquisa \"Como realizar a avaliação prévia (due diligence) do impacto social de um novo projeto?\". Para tanto, foi proposto um modelo de análise do impacto baseado na experiência do Acumen Fund, que foi aplicado no projeto de tecnologia assistiva mDREET, desenvolvido pelo negócio social Solar Ear. O foco do trabalho foi a fase inicial da avaliação dos investimentos, a due diligence, e o resultado obtido foi a demonstração, na prática, de um modelo simples de avaliação, que se mostrou válido para disseminar a compreensão do processo que leva ao impacto social esperado. Por demandar poucos recursos financeiros e de tempo, uma vez entendido, este modelo pode ser adaptado e replicado em diferentes contextos. / Impact investing is a recent concept, intermediary between traditional investment and philanthropy, and, in terms of assets under management, represents a small fraction from both other areas. Nevertheless, it has been growing at a high pace, and not only amongst the third sector. The private and public sector have been making some moves towards this direction and the estimated potential of this market is around one trillion dollars by 2020. If the big difference between impact investing and traditional investing is the intentional social and environmental positive impact, to enable a consistent growth, there is an urgent need to better define what this impact means and how to measure it. In order to contribute to this discussion, the current work aims to answer the research question \"How to make the due diligence of a new project\'s social impact?\". To accomplish this goal, the author proposes an impact evaluation model based on Acumen Fund practices. This framework was applied in mDREET, an assistive technology project developed by a social business named Solar Ear. The focus has been placed on the tools used in the due diligence phase and as a result, it is presented a simple and low cost process for social impact due diligence, which can be further refined as the company progress in the investment analysis pipeline. Once this process is understood, it can be adapted and used in different occasion/context.

Submitted by Pedro Holloway (pedro.holloway@gmail.com) on 2012-05-29T15:33:54Z No. of bitstreams: 1 Dissertação_Pedro_Holloway.pdf: 1129845 bytes, checksum: 158b8f46af1d2ad92b0e77aedc5dfcf6 (MD5) / Approved for entry into archive by Gisele Isaura Hannickel (gisele.hannickel@fgv.br) on 2012-05-29T15:54:37Z (GMT) No. of bitstreams: 1 Dissertação_Pedro_Holloway.pdf: 1129845 bytes, checksum: 158b8f46af1d2ad92b0e77aedc5dfcf6 (MD5) / Made available in DSpace on 2012-05-29T15:57:51Z (GMT). No. of bitstreams: 1 Dissertação_Pedro_Holloway.pdf: 1129845 bytes, checksum: 158b8f46af1d2ad92b0e77aedc5dfcf6 (MD5) Previous issue date: 2012-05-23 / This work contributes to research on value investing in Brazil, analyzing the Brazilian funds that adopt this philosophy. The goal is to identify some of the factors that influence the decisions of managers of value investing to maintain an asset in the portfolio and to buy assets. Other goals are to identify some characteristics about the funds and their adherence to the criteria formalized in the literature. The results show that the variables that influence the manager to maintain an action in the portfolio are: greater stability in earnings per share, high ROA, high gross margin, company size and liquidity of the shares. The index Price / earnings is the only variable that significantly influences the time of purchase in one of the tests. All funds value investing have higher return than the Bovespa index in the sample period, with less risk. Most funds use a few investment instruments - primarily equity and fixed income. / Esta dissertação contribui com as pesquisas sobre value investing no Brasil, analisando os fundos brasileiros que adotam tal filosofia. Seu objetivo é identificar alguns dos fatores que influenciam as decisões dos gestores de value investing a manterem um ativo em sua carteira e a comprarem esses ativos. Secundariamente, é objetivo identificar algumas características sobre os fundos e sua aderência aos critérios formalizados na literatura. Os resultados mostram que as variáveis que influenciam o gestor a manter uma ação na carteira são: maior estabilidade no Lucro por Ação, alto ROA, alta Margem Bruta, tamanho da empresa e liquidez das ações. O índice Preço/Lucro é a única variável que influencia significativamente o momento da compra em um dos testes. Todos os fundos de value investing têm retorno maior que o Ibovespa no período amostral, com menor risco. A maioria dos fundos utiliza poucos instrumentos de investimento – basicamente ações e renda fixa.

Impact investors, seeking financial returns from investments that actively create social or environmental value, use a process known as due diligence to vet incoming investment opportunities. Some industry-wide tools have come to aid investors in this task. Existing metrics are not sufficient to assess the environmental performance of investee companies, the result of which is an allocation of increasing investment dollars into ventures and industries that are not operating within the limits of the socio-ecological systems upon which society depends. This paper proposes the creation of an investor toolkit that would allow users to effectively integrate the principles of strategic sustainable development (SSD) into the due diligence process. Such a toolkit would explain how current due diligence support tools could be used to construct comprehensive sustainability analyses of potential investments. The proposed toolkit was conceived after interviews with impact investors, social entrepreneurs, and industry experts. The research findings confirm a need for investors to use a strategic understanding of sustainability during the due diligence process, in order to increase portfolio value over time.

This thesis responds to the question 'how can sovereign wealth funds manage ambiguity in their decision-making so as to implement substantive long-term investment programmes?' The rapid growth of sovereign wealth funds (SWFs) over the past decade, due largely to booming commodity prices, has inspired optimism among many for their potential to contribute to the sustainability goals of society. SWFs are unconstrained by many of the factors that have kept pension funds from realising their potential as long-term investors and so they are well placed to make significant investments in sustainable projects with positive externalities such as infrastructure and to act as effective monitors of corporate behaviour. But many obstacles stand in the way. At the institutional level, transparency has replaced tight financial market regulation, resulting in entrenched short-termism. At the organisational level, many problems facing long-term investors are too complex to fit into traditional models of decision-making. Decentralisation is necessary to respond to this complexity but it conflicts with the coordination necessary to achieve economies of scale and scope. There may not even be an ideal outcome to coerce or incentivise agents to achieve. Taken together, these problems are understood in this thesis as ambiguity, which results from differences in interpretation and irreconcilable conflict. In contrast, most governance frameworks focus on problems of uncertainty and risk, due to missing information. This thesis has three aims. The first is to reframe the governance challenge for longterm investing in terms of managing ambiguity. Second, this thesis aims to reconcile ambiguity with legitimacy that depends on expert decision-making and provides one right answer to a clearly specified problem. Third, it provides specific examples of how ambiguity, if managed, can improve decision-making. That is, ambiguity forces us to engage with subjective reality but also provides us with a framework to do so. Ambiguity can act as a built-in adaptation mechanism to hold a coalition of diverse interests together in a rapidly changing environment, to identify synergies where others see only trade-offs and to overcome collective action problems. These constructive properties of ambiguity are explored in the four substantive chapters of this thesis, alongside specific recommendations for changes to SWF governance structures to transcend barriers to long-term investing. The first half of the thesis focuses on the earlier stages of the investment process and draws on specific examples of two SWFs. Chapter III investigates ambiguity in the Alberta Heritage Fund's inter-generational equity mandate. If managed in the form of self-reflexivity, ambiguity can contribute to overcoming the time inconsistency problem in the context of sub-national resource wealth funds. Chapter IV focuses on the irreconcilable conflict in the Norwegian Fund's ethical investment policy. It argues that agents use their discretion to interpret the policy and, in doing so, are able to align it more closely to the Fund's long-term investing mandate. The second half of the thesis extends consideration to long-term investors more broadly. Chapter V explores the delegation of shareholder engagement to portfolio managers to leverage synergies in an investment management firm. It finds that introducing ambiguity into incentive design can overcome the multi-task incentive problem. Chapter VI brings concepts explored in earlier chapters to bear on its analysis of a new market for public infrastructure assets. It argues that ambiguity provides the space necessary to bring diverse actors together to transcend collective action problems and create new institutional arrangements to support a more efficient market structure. Taken as a whole, this thesis is optimistic that, as those claiming to have the one right answer are increasingly proven wrong, ambiguity will earn its rightful place in the study and practice of finance.

This diploma thesis is devoted to the problem of creating a portfolio of shares. First part is focused on the characterization of shares - classes of shares and rights associated with them. The second chapter compares the Efficient market theory and Behavioral approach, as the two opposing schools of thought. The third chapter gradually introduces fundamental analysis, from the global analysis through the analysis of an industry to the analysis of a particular company. Furthermore, this work focuses on the Value investment approach, that is based on fundamental analysis. On the basis of several criteria are particular stocks selected to the portfolio. The intensity of these criteria is then tested in the relationship with the resulting number of selected stocks. The conclusion of the fourth chapter is devoted to the issue of discounts and premiums that are trying to take into account specific factors of securities, which should be reflected into their prices.

Active management funds are associated with higher transaction costs, which is something that has been acknowledged for a long time. The question is whether these costs can compensate with a higher return. This paper investigates how two active strategies, momentum and growth investing, have performed in relation to a passive index. To test this, we investigated the Frankfurt stock market during 2005-2020 on stocks from the automobile sector. By doing this, the purpose was investigated whether growth and momentum has had a higher risk-adjusted return than the benchmark index during the 15 years of observation. The result showed that both growth and momentum performed better than a passive index fund, despite its costly variables. However, the risk adjusted return was not significant higher. This study includes transaction costs in its calculation, which other studies ignore and focus on one industry with a consistent benchmark index for the same industry. By doing this, we believe that the test will be more accurate, and avoid potential industry effects on return and hopefully contribute with new thoughts on the subject.

This thesis contributes to the currently still sprawling literature on the force of sustainable investing together with the “Big Five” personality structure (Openness to Experience, Conscientiousness, Extraversion, Agreeableness and Neuroticism). By investigating which personality trait, based on the Big Five personality taxonomy, that was willing to exchange revenue for a higher ESG rating in a hypothetical investment fund, we were able to determine when private investors were willing to pay more for a more sustainable investment. We use new data from our own questionnaire where the respondents are adult individuals residing in Sweden who has invested in the stock market. The data was analyzed with an econometric approach and for the regression ordinary least square and tobit was used. The results revealed that two personality traits (conscientiousness and agreeableness) tended to be less interested in sustainable investments, as they were not willing to pay for a fund with a higher ESG rating, unlike Openness to Experience, where the willingness to pay was high. The other two traits also showed a positive relationship and thus willingness to trade revenue for sustainability. This thesis contributes to the knowledge on how the personality of the private investors can motivate investment decisions and the preference of companies they invest in.