Research On Performance Of Collection Asset Management Plan

Collection asset management plan is the financial product for high-level clients in securities companies, which was re-born three years ago in china, and now as the size and quantity becomes higher and higher, it turns out to be an important participant and high-potential institute investor in China capital market after the mutual fund, which plays a needful role in improving the reform of the domestic capital market and the optimization of the investors'structure. The research of performance of collection asset management plan is helpful for investor to judge the investment management capability and has significant value.This paper presents the domestic development of collection asset management plan, and chooses the eight collection asset management plans between March 9th in 2007 and Sep 9th in 2008 as research samples. We used several indicators such as compound return on net value, geometrical yield, sharp ratio, M2 value to evaluate the performance of the sample products, and also took an empirical study for the stock selection and market timing.Our research indicates that the return of collection asset management plan is highly related with their capability of stock selection and market timing. Meanwhile, we also found that compared with mutual fund, although collection asset management plan have not significant performance in stock selection. There are several reasons for that such as the flaw of the market and also the lacking resource of security companies.According to the empirical results, this paper gives some suggestions for the development of domestic asset management business of security companies, including reformation of capital market, support from government, and strengthening the research ability of security company by itself.