Title:
Analysis of Investment Manager Fee in Mutual Fund Performance

Authors:
Muhammad Rifqi Ali Ghufron, Bambang Hadinugroho, Indonesia

Abstract:

This study aims to analyze the impact of investment manager fees on the performance of mutual funds in Indonesia during the period 2020 to 2023. In the mutual fund industry, the investment Manager’s fee is a significant cost component that can influence investor returns. This research compares the performance of high-fee and low-fee mutual funds using two risk-adjusted performance measurement methods: the Sharpe ratio and the Treynor ratio. The sample consists of 100 mutual funds, comprising 50 with high fees and 50 with low fees, selected through purposive sampling based on data from the Otoritas Jasa Keuangan (OJK) and other relevant sources. The data analysis includes normality testing using the Kolmogorov-Smirnov test and comparison testing using the Mann-Whitney test. The results show a significant difference in performance between high-fee and low-fee funds when measured using the Sharpe ratio, but no significant difference was found using the Treynor ratio. These findings suggest that higher investment manager fees do not necessarily guarantee superior mutual fund performance, depending on the performance metrics used. The implications provide valuable insights for investors, fund managers, and regulatory authorities in formulating more effective strategies and policies within the mutual fund industry.

DOI: https://doi.org/10.51505/IJEBMR.2025.9717