The Research Of The Relationship Between Fund Joint Shareholding And Fund Performance

With the rapid growth of pubic offering fund since 2015,it has become one of the most important institutional investors.In the meanwhile,the large scale of fund issuance causes fierce competition,especially when fund performance evaluation is based on short-term relative ranking system,fund managers face great pressure of their rankings.In terms of the public offering fund’s investment behaviors,the phenomenon of joint shareholding has been increasing,only about 40% listed companies in the A-share market are held by public offering funds,of which 80% are concentrated in the top 300 companies.Therefore,these funds are always questioned for investing in groups.According to this,the analysis of the impact of fund joint shareholding,and the impact of performance ranking on managers’ investment,is conductive to improving performance evaluation system of the fund company,which can also help investors establish a rational investment discipline.The paper chooses open-end equity and open-end partial-equity funds in Chinese A-share market from 2017 to 2021 as the research object,and forms a fund balance panel data containing 5600 records in quarterly time period,which also has corresponding 33486 funds’ holding stocks data.The paper uses the research method of fixed effect multiple regression analysis,it finds the influence of joint shareholding on the funds’ performance,and the impact of the fund managers’ relative rankings on their joint shareholding behaviors in next ranking period,with innovative improvement of the LSV and Meanfund measurement indicators to quantify joint shareholding behaviors.Also,it innovatively combines manager’s investment adjustment in next period with the key ranking quantile of the fund performance appraisal,clarifying the role of ranking on the adjustment of fund’s investment.The research found that:(1)Due to the existence of the mechanism of divergence of opinion,the funds with the rising degree of joint shareholding of pubic offering funds are more likely to obtain higher returns in the quarterly cycle.But as the joint shareholding indicators rise,the divergences of opinion among relevant stocks have declined,the consistent expectation has risen,the boost to the stock yield will face marginal decline.(2)At the same time,the public offering funds that are lagging behind in the rank competition have tendency of herd behavior in the next ranking term,their tendency of joint shareholding is likely to rise,which also complies with the effect of marginal decline with,there is a certain heterogeneity.The bottom ranking fund has the strongest tendency to raise its degree of joint shareholding with others,and the tendency of the fund in the middle ranking and the winner fund will reduce or not significant in the next ranking period.(3)According to the fund manager’s performance appraisal mechanism,the research finds that the change tendency of joint shareholding in the next period of the public offering fund is highly correlated with the key ranking quantile in the performance appraisal system of the fund manager,while the fund with non-critical ranking quantile is relatively insignificant,it indicates that the adjustment of the joint shareholding behavior among the funds in the key ranking quantile is driven by the relative ranking mechanism,rather than the choice made by the fund based on its private information.(4)The threshold effect and group analysis show that the fund at the reciprocal 33% of the yield ranking has the greatest tendency to adjust the degree of joint shareholding,it complies with the evidence of reality because the inverted 33% ranking quantile in reality is an important qualified ‘threshold’ for the performance appraisal of most fund managers,which further shows that the adjustment of fund managers’ investment is greatly affected by the ranking mechanism.