Naumenko K. Collective Investment Institutions in the Context of Global Financial Instability.

The thesis analyzes theoretical basis of the CII functioning. It also analyses influence of these theories on the transformation of practices and forms of organization of the CII, especially in the field of index investing, role of index investment strategies and possible consequences of the spread of such an investment strategy for CII and stock market. The relationship of the pension systems and CII is quantified. The research specify properties of exchange-traded funds, especially organization and development in various regions of the world, classifies risks of financial stability and reveals the challenges posed by ETFs development on financial community. It is also empirically proven, using a sample of 35 equity ETFs traded at the Swiss Stock Exchange and tracking error estimation in four different ways, that both traditional and synthetic ETFs have significant tracking errors.