Fund Performance

Study on the Characteristics of Fund Managers and the Impacts on Fund Performance in China[1]

Tiao-yan Hui1, Yun Chang2

Department of Economics and Management, Xidian University, Xi’an, China

(1huity@163.com, 2changyun0304@163.com)

Abstract - This paper makes an empirical study on fund manager’s personal characteristics and its impact on fund performance, using the data of open stock and hybrid funds in china from 2005 to 2010. Through descriptive statistics and regression analysis by SPSS13.0, the results show that: fund manager’s Securities business time and with MBA degree have significant positive impacts on fund performance; the manager numbers of a fund and fund manager’s gender have no significant impacts on risk-adjusted performance; While, differing from our perception, fund manager’s overseas experience is significantly negatively related to fund performance. In addition, securities market has significant impact on fund risk-adjusted performance, which is significantly better especially in bull market.

Keywords - Fund manager, Personal characteristics, Fund performance, Risk-adjusted performance

I. INTRODUCTION

With the development of the economic and the capital market, securities investment fund has not only become the most influential institutional investors in the stock market, but also the main channel for people to invest for its professional management with higher return and lower risk.

Fund manager’s personal characteristics largely determine the style, even the performance of a fund, so it's believed that people choose a fund to a certain extent, is to choose a fund manager [1]. To date, prior literatures have examined the impacts of fund manager's incentive and fund performance. Some scholars hold that there should be some evidence that some fund managers are better than others. However, the issue of fund manager’s personal characteristics has received limited attention in the literature. In this paper we...