Evaluation And Influencing Factors Analysis Of E Fund Stable Income Bond Fund Performance

The total scale of asset management in China grew smoothly after the enactment of the new regulations on capital management market.Among different product types,funds with fixed income assets plus equity assets,which have less volatile than equity funds and have higher returns than bond funds,are favored by investors.During the years of explosive growth in product scale,the sharp shock and retracement in the equity market caused the net value of funds with fixed income assets plus equity assets to become more volatile,and these funds often have negative returns after holding,a phenomenon that was inconsistent with the expectation of product issuance and the time of purchase.Among similar funds,E Fund Stable Income Bond Fund,which was established early,has a large management scale and the fund manager has won Golden Bull and Morningstar Award,has also experienced a significant decline in net value,with the fund’s annual rate of return in 2022 being negative and not beyond the annual rate of return of the CSI Aggregate Bond Index.Therefore,the fund performance evaluation and analysis of fund performance influencing factors from different dimensions can provide the fund manager of E Fund Stable Income Bond Fund with targeted suggestions for the subsequent management process,and also bring some reference to the fund managers of similar funds in China’s fund market.Based on it,the paper compares the performance of E Fund Stable Income Bond Fund with Secondary Market Mutual Bond Funds,evaluates the performance of the fund,and examines the performance influencing factors of Secondary Market Mutual Bond Funds and E Fund Stable Income Bond Fund,and suggests performance improvements for them.In the paper,there are 30 Secondary Market Mutual Bond Funds selected for performance comparison with the E Fund Stable Income Bond Fund to evaluate their performance over the period from January 1,2018 to December 31,2022.In addition to the evaluation of the rate of return,absolute risk,risk adjusted yield,investment style and fund manager’s stock selection and market timing ability,the article conducts a performance interfering factors study for Secondary Market Mutual Bond Funds and E Fund Stable Income Bond Fund.Paper uses a random-effect model to study the performance affecting factors of Secondary Market Mutual Bond Funds,and on this basis,it uses a time-series multiple regression model to study the performance influencing factors of E Fund Stable Income Bond Fund.Ultimately,the thesis yields the following conclusions:(1)Evaluated by the absolute return and absolute risk index,E Fund Stable Income Bond Fund has the ability to achieve relatively high benefits,but its risk level is high compared to similar funds.(2)Evaluated by the risk-adjusted return index,E Fund Stable Income Bond Fund has a medium to high Sharpe ratio ranking,and the difference in ranking between Sharpe ratio,Traynor ratio and Jensen ratio is not significant,so it has a certain investment cost performance.(3)Evaluated by the Fama-French three-factor model,E Fund Stable Income Bond Fund’s manager is consistent with similar funds in terms of size selection,favoring large-cap stock investments,but differs from its similar funds in terms of style selection,favoring value stock investments.(4)Evaluated by the fund manager’s stock selection and timing ability,E Fund Stable Income Bond Fund’s manager has the ability to select timing and has relatively excellent stock selection ability.(5)As for the factors influencing the performance of Secondary Market Mutual Bond Funds,the standard deviation of benefits has a significant negative influence on the achievement of the fund,and the improvement of fund manager’s stock selection ability has a significant positive influence on the performance of the fund.The increase of CPI has a positive effect,and this indicator affects Secondary Market Mutual Bond Funds in the opposite direction of Bond Funds.The increase of CSI has a negative influence on fund performance,and the rising market of bond market does not enhance the performance level of this fund category.(6)As for the factors influencing the performance of E Fund Stable Income Bond Fund,information ratio,fund manager’s timing ability and stock selection ability are the factors affecting the performance of this fund.Compared to Secondary Market Mutual Bond Funds,the above three indicators have an influence on the fund performance,and the fund manager’s timing ability and stock selection ability have a significant positive influence on the fund performance.The paper makes the following recommendations: the fund manager of E Fund Stable Income Bond Fund needs to control the risk level of it,reduce the magnitude of retracement,improve the investment and research ability of the team,and increase the proportion of equity researchers.Fund managers of funds with fixed income assets plus equity assets need to control the proportion of equity assets,identify risks effectively,improve stock selection ability and make differentiated sector allocations.