Research On The Asset Allocation Performance Evaluation Of HY Company

With the rapid development of China’s sustained economic and the fast accumulation of enterprise and household wealth, the potential of the domestic wealth management business is increasingly apparent. At present, wealth managementinstitutions such as domestic fund companies, asset management companies,the private equity firms are growing fast.It has become the corepriority how to manage the institutions big wealth such asBanks, insurance companies, funds, listed companies of large amount and long-term stability of cash flow.This paper first introduces the basic information of HY including invest concepts and asset allocation situation, and then points out the problems in the process of asset allocation. After that, the performance of HY from 2013 to 2015 has been researchedfromvariousaspects in three ways of "wholeperformance, security selecting and market timing ability, and decompositionof performance”.The results show that: On the wholeperformanceaspect, HY was better than the benchmark market indexin yield, standard deviation, maximum drawdown, Sharpe ratio.In the terms of security selecting and market timing, T-M modelshows thatHY had certain advantages in predicting market timing, but no significant advantages in terms of picking stocks.In terms of performance decomposition, asset allocation made a greater contribution and the rest made a weaker or even negative contribution to HY.However, compared with the fund management organ of famous at home and abroad, the asset class of HY is not so diversify, the ability of getting alpha for some asset classes is not sufficient, and the risk control is not comprehensive.At last, this paper points out that HYshould make a change in some areas.The performance evaluation is a summary and analysis of the pastand it does not represent the future performance. But the research on the performance of HY company asset allocation can not only evaluate thecompletion of investment target and the risk control ability of the HY company,but isalsoable to identify the defects of investment process and then improve the strategies or invest activitiesthat make little benefit or have big riskexposure whichcan impact the invest target. At the same time, the research on the performanceof HY company asset allocationcan provide analysis methodon performance evaluation for other similar company. More important, itprovidesa basis for outside investors to distinguish companies’ investment performance.