Our Country Open-end Fund Performance Evaluation, Data From 2006-2010

Since the appearance of the first open-end security investment fund "Hua’an Innovation" in the year of2001, China’s fund industry has experienced a rapid growth, with both the scale and style of securities investment funds increasing a lot. By the end of December2011, there are68fund management companies existing, the amount of total securities investment fund is974, and net asset value is2.205billion RBM. For the current, securities investment fund is becoming the biggest institute investor in the securities market and is to brace a bright future. On the other hand, as the fund industry’s role is to "increasing the value of accumulated assets via securities investment" in behalf of its investors, there are unavailable principal-agent and moral hazard problems. Therefore, we must find some approaches to evaluate the performance of the open-end investment securities, in order to give guidance to the public investor, regulate the behavior of fund managers and contribute to the health growth and development of the securities investment fund industry.The paper analyzes the performance of30stock-style funds during January2006to December2010, from the aspect of risk adjusted return ration, funds managers’ability to select the right stock and market time and the persistence of these funds performance. The employed methods are three classic evaluation indices of Sharpe index, Treynor index and Jensen index, T-M and H-M model. The result shows that most of the funds can obtain an extra performance better than the market especially in the year of2006and2007. However, those stock-style funds don’t have the ability to behave great continuously. That means investor should not base their investment decision on the past performance of funds.