This study examines the fund-level correlates of return and share price discount or premium for the closed end funds (CEFs) investing in emerging and developed capital markets. It also compares the performance of CEFs investing in emerging markets with similar types of funds that invested in the developed markets, especially significant in light of recent economic crises experienced by a number of such emerging economies and their ripple (contagion) effects felt in other emerging or developed capital markets. Lastly, as emerging markets constitute a wide array of countries with very different economic records, this paper looks into the performance of emerging markets CEFs by region as well as the performance of single-country versus regional funds. Findings confirmed results of many studies of domestic and international open-or closed-end funds on determinants of return and share price discount or premium. Emerging capital markets also continued to provide an outlet for international investors to improve their portfolio return despite significant volatility that surrounded them during the study period. Lastly, this study did not find any compelling evidence for consistent superior performance by CEFs investing in any particular region or country within the emerging markets.

This paper begins by defining and briefly explaining what discriminant analysis is. After noting the advantages and drawbacks of this statistical technique which is very similar to the regression analysis, the paper summarizes a number of important studies reported in the finance area during the last twenty years, using this technique. Some of the interesting efforts involve prediction of corporate bankruptcies, identification of conglomerate targets, prediction of bond rating, etc. The majority of the studies have relied on discriminant analysis to classify firms into two distinct groups. Few studies (e.g., studies on bond ratings) have used multiple discriminant analysis to identify more than two groups. Varying levels of accurate classification rates are reported depending on how the matched group was selected and which statistical procedures were used to select the independent, explanatory variables.

Purpose This paper aims to examine the performance of select “socially conscious” (SC) mutual funds and a control group of conventional funds during recent bullish and bearish financial markets. It aims at exploring the interface of these funds’ historical returns and selectivity of their investment screening. Design/methodology/approach The authors’ data come from Morningstar Direct and focuses on “equity” funds/class A shares only. The authors controlled for age, expense ratio, size and management turnover in comparing SC and mutual funds’ returns. Findings SC funds underperformed conventional funds in both expansionary and recessionary periods and in short and long term. Paradoxically, SC funds’ return generally improved with the number of social screens adopted. The gap in returns between SC, conventional funds and indices of market return narrowed as investment horizon became longer and also during boom market conditions, suggesting that doing good need not come at the expense of doing well. Research limitations/implications The authors’ study focused on class A shares only. Practical implications In choosing SC funds, investors need to focus on expense ratio and management turnover which seem to influence returns more. Neither age nor size of SC funds seem to have affected returns in systematic and statistically significant way. Originality/value This paper provides the most recent scorecard of SC funds’ performance, compared to similar conventional funds and market return, since the 2007 global financial crisis.

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We begin this paper by summarizing various studies which used surveys and economic models to describe the characteristics and benefits of the old tradition of ROSCAs which is prevalent in many developing countries around the world. These studies also document the types of draws and the factors that motivate people to participate in a ROSCA. We expand the information on this tradition in a state in India where ROSCA is referred to as bhishi. During the month of January 2013, we interviewed (in-person & over the telephone) several regular participants living in two metro areas in the State of Maharashtra, namely, Mumbai & Pune. Another smaller city of Miraj was also included. The findings from the interviews in India are illustrative of the creative ways people have taken the old, money-based idea of bhishi and interwoven it with the fabric of social and cultural traditions. It is being kept alive to build and strengthen relationships among friends, relatives, and neighbors. Incorporating the fun dimensions ranging from enjoying different cuisine to taking trips into the old tradition seems to maintain its popularity. This behavior is noteworthy especially with India’s recent entry into the world market as an emerging economic power. Although people with lower incomes still value bhishi in its traditional role as a saving vehicle (and occasionally as a lender of last resort), most middle and upper-income earners strongly believe in this modern evolution of an old tradition and are committed to continue it.