Anatomy of performance fees in Finnish mutual funds

OBJECTIVES OF THE STUDY: In this thesis, I study the use of performance fees in Finnish mutual funds, their impact on the funds' risk-adjusted return, risk and their theoretical value. Furthermore, utilizing simulation-based methods, my objective is to calculate a theoretical value for the performance fee structures in Finnish mutual funds. Finally, I also study the different regulatory approaches to performance fees in select European countries and the disclosure of Finnish funds' performance fees. DATA AND METHODOLOGY: My sample consists of 332 mutual funds registered in Finland and contains quarterly observations on each fund from March 2007 to December 2012. 40 of these funds utilize performance fees. The sample is free from survivorship bias. My analysis is primarily based on random effects panel regressions with a variety of risk and return variables as dependent variables and funds' individual characteristics as explanatory variables. I also utilize Monte Carlo simulation and the Margrabe model to calculate the cost of the fee for each of the funds in the sample. FINDINGS OF THE STUDY: Funds with performance fees offer better risk-adjusted returns. The introduction of a performance fee increases the funds' ex post four-factor alpha by on average 83 basis points per quarter. The results hold also when using Sharpe ratio and the raw quarterly return as dependent variables. The use of performance fees does not increase funds' volatility levels relative to funds without such fees. However, funds with performance fees exhibit higher tracking errors, implying that funds take more active risk compared to their counterparts. The theoretical value of the performance fee is on average 1.35% Furthermore, funds with performance fees, on average, offer significantly lower management and redemption fees than funds without such fee structures. The difference is 22 and 24 basis points p.a. for management and redemption fees, respectively. However, the extra cost associated with the performance fees makes these funds more expensive on an annual basis

Sparkling Spots : What embodied thinking reveals about knowledge creation

Clever methods and research designs are needed in the research field of embodied thinking. There is a need to find repeatable research methods and testable hypothesis. (Nuñez, 2012, 329.) The aim of this master's thesis is to find solutions for how the embodied thinking can be identified in the knowledge creation process and how the embodied thinking can be recognized in the process and in the designed artifact. This research was implemented from the data gathered by the Handling Mind project, in Autumn 2014. It is a development study, where craft science student groups (three students) designed children's accessories for a sea world's guided tours. The purpose of applying the narrative expectation analysis was a pursuit to make the process of recognizing embodied thinking in the knowledge process more transparent. After the expectation analysis revealed occurrences of embodied thinking, idea-response pairs were defined and then formed into chains from a new idea to the final artifact, so as to interpret embodied thinking in knowledge creation process. The narrative expectation analysis resulted in a rich material for further analysis of the embodied thinking in a knowledge creation process. The spots where a new design idea and embodied thinking encountered in the collaborative design process were proved significant for the embodied thinking. These implemented analyzes revealed the essential themes of structure, materials, form and utility in designing an artifact in a collaborative design process. Based on these results it can be concluded that embodied thinking is observable with the narrative expectation analysis and embodied thinking can be recognized in a knowledge creation process. The use of narrative expectation analysis manifested itself as a useful method that revealed embodied thinking as expected. The pair and chain analysis supported the narrative nature of this study and reinforced the results of the narrative expectation analysis about revealing and identifying the embodied thinking in the knowledge creation process. According to the results and the small sample of this study in mind it can be argued that the learning in the knowledge creation process could be proved without formal exams or essays.Kehollisen ajattelun tutkimuksessa on keskeistä löytää menetelmiä, jotka tarjoavat mahdollisuuden tutkimuksen toisintamiseen ja hypoteesien testaamiseen (Nuñez, 2012, 329). Tämän tutkielman tavoitteena oli löytää vastauksia siihen miten kehollinen ajattelu voidaan paikantaa tiedonluomisprosessissa ja miten kehollinen ajattelu näkyi tiedonluomisprosessissa tai lopullisessa artefaktissa. Tutkimus toteutettiin Handling Mind –projektin syksyllä 2014 keräämästä kehittämistutkimusaineistosta, jossa kolmen hengen tekstiilityönopettajaopiskelijaryhmät suunnittelivat lapsen asusteen merimaailman elämyskierrokselle. Narratiivisen odotusanalyysin soveltamisen tarkoituksena oli lisätä läpinäkyvyyttä kehollisen ajattelun paikantamisessa tiedonluomisprosessissa. Odotusanalyysin osoittamista kehollisen ajattelun kohdista käsin muodostettiin ensin idea-vastepareja ja lopulta ketjuja tiedonluomisprosessin kehollisen ajattelutoiminnan tulkitsemiseksi. Narratiivinen odotusanalyysi synnytti rikkaan aineiston kehollisen ajattelun analysoimiselle. Uuden suunnitteluidean ja kehollisen ajattelun risteyskohdat osoittautuivat kehollisen ajattelun kannalta merkittäviksi paikoiksi. Tämä analyysi nosti esille myös tiedonluomisen kannalta keskeiset tuotteen muotoa, rakennetta, materiaaleja ja käytettävyyttä käsittelevät teemat. Tästä voidaan päätellä, että kehollisella ajattelulla on oma roolinsa tiedonluomisprosessissa. Ajattelun ja tiedonluomisen voidaan näin ollen nähdä olevan näkyvää ja kertovan jo omassa toiminnassaan ajattelusta ja oppimisesta. Narratiivisen odotusanalyysin käyttö kehollisen ajattelun tunnistamisessa osoittautui käyttökelpoiseksi menetelmäksi, joka teki kehollista ajattelua näkyväksi toivotulla tavalla. Parien ja ketjujen muodostaminen kehollisen ajattelun ilmenemisestä tiedonluomisprosessissa tuki tutkimuksen narratiivista luonnetta ja vahvisti narratiivisella odotusanalyysillä saatuja tuloksia kehollisen ajattelun esille saamisesta ja näkymisestä tiedonluomisprosessissa. Tämän pieniotantaisen tutkimuksen valossa voidaankin ajatella, ettei oppimista tiedonluomisprosessissa välttämättä tarvitsisi osoittaa enää erillisellä kirjallisella suoritteella

Structural identifiability of surface binding reactions involving heterogeneous analyte : application to surface plasmon resonance experiments

Binding affinities are useful measures of target interaction and have an important role in understanding biochemical reactions that involve binding mechanisms. Surface plasmon resonance (SPR) provides convenient real-time measurement of the reaction that enables subsequent estimation of the reaction constants necessary to determine binding affinity. Three models are considered for application to SPR experiments—the well mixed Langmuir model and two models that represent the binding reaction in the presence of transport effects. One of these models, the effective rate constant approximation, can be derived from the other by applying a quasi-steady state assumption. Uniqueness of the reaction constants with respect to SPR measurements is considered via a structural identifiability analysis. It is shown that the models are structurally unidentifiable unless the sample concentration is known. The models are also considered for analytes with heterogeneity in the binding kinetics. This heterogeneity further confounds the identifiability of key parameters necessary for reliable estimation of the binding affinit

Structural identifiability analyses of candidate models for in vitro Pitavastatin hepatic uptake

In this paper a review of the application of four different techniques (a version of the similarity transformation approach for autonomous uncontrolled systems, a non-differential input/output observable normal form approach, the characteristic set differential algebra and a recent algebraic input/output relationship approach) to determine the structural identifiability of certain in vitro nonlinear pharmacokinetic models is provided. The Organic Anion Transporting Polypeptide (OATP) substrate, Pitavastatin, is used as a probe on freshly isolated animal and human hepatocytes. Candidate pharmacokinetic non-linear compartmental models have been derived to characterise the uptake process of Pitavastatin. As a prerequisite to parameter estimation, structural identifiability analyses are performed to establish that all unknown parameters can be identified from the experimental observations available

Parameter Redundancy in Discrete State-Space and Integrated Models

Discrete state-space models are used in ecology to describe the dynamics of wild animal populations, with parameters, such as the probability of survival, being of ecological interest. For a particular parametrisation of a model it is not always clear which parameters can be estimated. This inability to estimate all parameters is known as parameter redundancy or a model is described as non-identifiable. In this paper we develop methods that can be used to detect parameter redundancy in discrete state-space models. An exhaustive summary is a combination of parameters that fully specify a model. To use general methods for detecting parameter redundancy a suitable exhaustive summary is required. This paper proposes two methods for the derivation of an exhaustive summary for discrete state-space models using discrete analogues of methods for continuous state-space models. We also demonstrate that combining multiple data sets, through the use of an integrated population model, may result in a model in which all parameters are estimable, even though models fitted to the separate data sets may be parameter redundant

An iterative identification procedure for dynamic modeling of biochemical networks

<p>Abstract</p> <p>Background</p> <p>Mathematical models provide abstract representations of the information gained from experimental observations on the structure and function of a particular biological system. Conferring a predictive character on a given mathematical formulation often relies on determining a number of non-measurable parameters that largely condition the model's response. These parameters can be identified by fitting the model to experimental data. However, this fit can only be accomplished when identifiability can be guaranteed.</p> <p>Results</p> <p>We propose a novel iterative identification procedure for detecting and dealing with the lack of identifiability. The procedure involves the following steps: 1) performing a structural identifiability analysis to detect identifiable parameters; 2) globally ranking the parameters to assist in the selection of the most relevant parameters; 3) calibrating the model using global optimization methods; 4) conducting a practical identifiability analysis consisting of two (<it>a priori </it>and <it>a posteriori</it>) phases aimed at evaluating the quality of given experimental designs and of the parameter estimates, respectively and 5) optimal experimental design so as to compute the scheme of experiments that maximizes the quality and quantity of information for fitting the model.</p> <p>Conclusions</p> <p>The presented procedure was used to iteratively identify a mathematical model that describes the NF-<it>κ</it>B regulatory module involving several unknown parameters. We demonstrated the lack of identifiability of the model under typical experimental conditions and computed optimal dynamic experiments that largely improved identifiability properties.</p

Supply Chain at Eniram Oy : delivery and productization process phases and improvement ideas from the supply chain`s point of view

The aim of this thesis was to develop and describe the different phases of the delivery process and new hardware`s productization process from the supply chain`s point of view at Eniram Oy. Another target was to find out how to manage future growth from the supply chain`s point of view. The plan was to find out problems and deficiencies in the delivery process, and theories or solutions on how to improve them. The theories and improvement ideas of this thesis are based on the research and in the communication in the company. The subject for the study was received from the company. Supply chain`s actions in the product management – product release process were defined and gathered in a process map. Then each of these phases in the process was described and looked at separately to find out if there was something to improve. Improvement ideas were taken as far into practice as possible during the study and the actions will be continued in the future. Listing the process phases and looking for improvements from the supply chain`s point of view has been useful for the company. The improvements reduced lead times and made daily work more fluent in the delivery and productization process. Also, the supply chain`s actions in different process phases were documented and are now available for the whole company.Tämän opinnäytetyön tarkoituksena oli kehittää ja kuvata toimitusprosessin sekä uuden laitteen tuotannollistamisprosessin eri vaiheita toimitusketjun näkökulmasta Eniram Oy:llä. Toinen tarkoitus oli selvittää, kuinka hallita tulevaisuuden kasvua toimitusketjun näkökulmasta. Suunnitelma oli löytää ongelmia ja puutteita toimitusprosessissa sekä teorioita tai ratkaisuja, kuinka parantaa niitä. Tämän opinnäytetyön teoriat ja parannusehdotukset perustuvat tutkimustyöhön ja kommunikointiin yrityksessä. Opinnäytetyön aihe saatiin yritykseltä. Toimitusketjun toimet tuotehallinnassa, sekä tuotannollistamisprosessissa määriteltiin ja lisättiin prosessikarttaan. Tämän jälkeen jokainen näistä vaiheista kuvattiin ja käsiteltiin erikseen, ja katsottiin jos niistä löytyisi jotain parannettavaa. Parannusehdotukset vietiin niin pitkälle käytäntöön tämän opinnäytetyön aikana, kuin mahdollista, ja toimia jatketaan tulevaisuudessa. Prosessin vaiheiden luettelointi, sekä kehitysehdotusten tekeminen toimitusketjun näkökulmasta on ollut hyödyllistä yritykselle. Parannukset lyhensivät läpimenoaikoja ja tekivät päivittäisestä työstä jouhevampaa toimitus ja tuotannollistamisprosesissa. Lisäksi toimitusketjun toimet prosessin eri vaiheissa dokumentoitiin ja on nyt koko yrityksen saatavilla

Kehitysvammaisten mediatoiminta voimauttaa ja rikastuttaa arkea

Opinnäytetyöni on monimuotoinen ja koostuu kolmesta elkovasta ja tästä kirjalisesta osasta. Tämä tutkimus käsittelee kehitysvammaisten mediatoimintaa ja sen vaikutuksia. Tutkimuksen tavoitteena on selvittää mediatoiminnan vaikutuksia kehitysvammaisiin henkilöihin, työyhteisöön ja yhteiskuntaan. Tutkimuksessa esitellään kehitysvammaisten mediatoimintaa ja kerrotaan, missä ja miten kehitysvammaisten mediatoimintaa Suomessa järjestetään. Tutkimuksessa esitellään myös erilaisia tuotantoja, jotka ovat syntyneet kehitysvammaisten mediatoiminnan myötä. Tutkimus on toteutettu kahden mediatoimintaan osallistuvan kehitysvammaisen henkilön, kehitysvammaisten mediakursseja vetävän taidepainotteisen erityistyönohjaajan sekä media-alan ammattilaisen haastatteluista saadun tiedon kautta. Tutkimuksessa käytän myös oman työkokemukseni pohjalta saatua tietoa ja kehitysvamma-alan kirjallisuutta, nettiartikkeleita sekä kehitysvammaisten kanssa tehtyjä erilaisia mediatuotantoja. Tutkimus on ajankohtainen, koska kehitysvammaiset henkilöt ovat olleet aktiivisesti mukana mediatoiminnassa ja tekemässä mediaa alan ammattilaisten rinnalla jo melkein viisi vuotta. Kuitenkin mediatoimintaa järjestetään hyvin vähän. Kehitysvammaisten mediatoiminta voimauttaa kehitysvammaista henkilöä ja rikastuttaa häenen elämäänsä.The present Bachelor´s Thesis investigates media-activity for people with intellectual disabilities and the effects it has on individuals and society. The goal of this research is to prove that media-activity for individuals with ID is valuable and empowering option comparing other activities that the society has to offer. This research presents media-activity for individuals with ID and gives information how to organize this kind of activity. This work also presents media productions that are results of media-activity for persons with ID. The research has been done by interviewing two persons with an ID , Media trainer who runs media courses for persons with ID and one long-term Radio-host who has also been working with individuals with ID.The background material is based on researchers experience as a director of Media workshop for persons with ID. Literature, articles and media productions is used as a source of information as well. The research is current because individuals with an ID has been actively taking part in media work side by side with professionals of the media field for almost five years now. Still we are arranging only some media-activity for intellectually disabled individuals. Media-activity for people with intellectual disabilities empowers and enriches their daily life