Research On The Impact Of Fund Manager Characteristicson Fund Performance

In recent years,China’s public fund industry has developed rapidly.According to Wind statistics,as of June 2021,the total size of China’s public funds has climbed from RMB 7,114.033 billion in June 2015 to RMB 23,032.833 billion,and the number of funds has increased from 2,379 to 8,320,with more and more investors taking funds as the main choice for asset allocation.As the saying goes,"choosing a fund is choosing a fund manager",and the investment decisions of fund managers largely determine the performance of funds.Many studies at home and abroad have shown that fund manager characteristics significantly affect fund performance,but due to differences in domestic and international markets,as well as different time periods of research,there is no uniform conclusion.This paper aims to study how fund manager characteristics affect fund performance under different market conditions in China’s fund market,and to provide recommendations for investors,fund managers and fund companies based on the results of the study.This paper firstly compares the literature related to fund performance evaluation and fund manager characteristics at home and abroad and summarizes the relevant research results of previous authors,secondly compares and analyses the theories and conclusions of previous scholars to determine the research object of this paper,and proposes the research hypothesis of this paper,then analyses the fund manager characteristics and fund performance,finally the empirical study is conducted.The selected fund manager characteristics are: education,gender,major,whether overseas background,whether researcher experience,whether non-securities fund experience,number of funds under management,days of fund manager management and total fund size,the fund performance measure is Sharpe Index.The empirical part is divided into four main parts: firstly,the data source and sample selection are determined,and 117 funds with at least one fund manager under continuous management of the fund and the corresponding fund managers during the period from 1 January 2014 to 30 June 2021 are selected as the sample,secondly,the H-P filter method and the peak and trough theory are used to classify the sample time interval according to the market sentiment into: bull market,Bear Market 1,Oscillating Slow Bull Market 1,Bear Market 2 and Oscillating Slow Bull Market 2,and then build a cross-sectional multiple regression model,and finally carry out empirical analysis and compare the results respectively.The impact of fund manager characteristics on fund performance was found to vary across market conditions:(1)male managers outperform women,but only in bull markets;(2)highly educated fund managers outperform in bull markets,but underperform in shock and bear markets due to overconfidence;(3)overseas background has a negative impact on fund performance,but it takes longer to show up;(4)whether a fund manager has a scientific or technical background and whether he has researcher experience does not affect fund(5)fund managers with non-stock fund experience perform better in a volatile market with small fluctuations;(6)fund managers who work for the top 10 fund companies underperform;(7)the more funds a manager manages and the larger the total size of the fund,the more obvious the "grouping" phenomenon is and the better the fund performs;(8)The longer the fund manager manages the fund,the worse the fund’s performance;(9)In a bull market,the larger the fund,the higher the cost of switching positions,the easier it is to miss the market,and the overall performance is poor,but in a shock market and a bear market,the larger the fund,the stronger its ability to resist risk;(10)The more stable the fund manager team of a fund company,the better the performance of its funds.The more stable a fund manager team is,the better its funds will perform,but it will take a longer period of time to show this.