An Empirical Research On Chinese Open-ed Funds Performance

Since the first open-ed fund came into being in September2001, thecontinuous establishment of new open-ed funds made it larger than the closedfunds both in quantity and scale.It has been the major style in securitiesinvestment funds and became the most effective institutional investors in ournation.Experienced the bull-bear market condition between2007and2008,The performance of the open-ed funds aroused the investors’ concernextensively. Whether the manager of the open-ed funds has the abilities ofspecialist financing,or can they beat the market and earn satisfied income forthe shareholders have became the hot topic between the investors.So,it isnecessary to evaluate the performance of open-ed funds in objectively、fairlyand reasonably.At abroad,the theories and methods of the evaluatingperformance have been very mature. In domestic, many scholars have doneresearch positively,but almost aimed at the closed funds.And because thelimitation of the short-time development of the securities investment funds,thesamples’ size and the historical data were small and inadequate. In addition tothese,they had seldom did research in the condition of bull-bear market,afterall,it is very difficult to evaluate the ability of the manager in earning income inan unilateral market condition.For this reason, concerning the realistic condition in domestic,the articledraws support from the evaluation methods of the abroad securitiesinvestment performance, the author evaluates the performance of the open-edfunds using theoretical and empirical method in objectively.Firstly,the article introduces the research background andmeaning,reviews the current situation both in abroad and domestic,proposesthe research ideas、article framework and the innovation.Secondly,the author introduces the operation characteristic and structureof the opened-funds by comparison, analyses the relationship between thesecurity market and the survival environment of open-ed funds by using thetheory of institutional change,then discussing the investment strategies of the open-ed funds in the special market.Thirdly,the article describes the methods of evaluating securitiesinvestment funds performance after reviewing the modern portfoliotheory,capital asset pricing model,arbitrage pricing theory and the efficientmarket hypothesis.All the theories paved a solid theoretical foundation for theempirical research.Fourthly,combining the realistic condition in domestic,the article chooses59funds which have been issued before January12,2005as the researchobjects in the study and the sample period is from January7,2005to July31,2009.With suitable evaluating performance methods,the author carries onempirical test.The results show that,the methods of risk-income model havenearly the same conclusions;the market systemic risk influences theperformance of open-ed funds deeply; as the Jensen index shows,theperformance of open-ed funds is much better than the returns of the marketbenchmark;however,the managers have little market timing ability andrelatively good security selecting ability by the test of security selectiing abilityand market timing ability methods;and the continuous of the performance isinsignificant as the test show us.Finally,the article proposes corresponding suggestion and advices, thenreveals the limitations.