Abstract
This article analyzes the current status of indexing investment performance in China and the characteristics of fund managers and fund management companies. It also theoretically analyzes the influence of these factors on indexing investment performance in terms of fund governance structure, characteristics of fund managers and fund companies, stock selection ability and timing ability. Next, it uses multiple regression analysis from three dimensions mentioned above to verify the influencing factors on investment performance. The results show that in terms of passive investment, fund tracking error is significantly negatively correlated with institutional holdings and fund managers’ stock selection ability, and significantly positively correlated with fund managers’ timing ability. Female fund managers’ tracking errors are smaller. Institutional investors play a positive role in promoting the performance of active investment. The fund manager’s stock selection ability can effectively reduce the fund’s sensitivity to target index fluctuations, and the fund manager’s timing ability can significantly improve the performance of fund allocation. Funds allocated by female fund managers will be less sensitive to target index fluctuations. Keywords: indexing investment, performance, fund management, fund managers DOI: 10.7176/RJFA/12-22-01 Publication date: November 30th 2021
Highlights
1.Analysis on the Current Status of Indexing Investment Performance in China 1.1 Asset allocation method and investment performance Securities asset allocation methods are generally divided into two categories: active investment and passive investment
There are two important products in indexing investment market of China, namely passive index funds and enhanced index funds. The former completely passively replicates the index, while the latter uses most of the assets for passive investment, but at the same time uses a small portion of assets for active investment
We can clearly see that the tracking error of passive funds in general is significantly smaller than that of enhanced funds; correspondingly, the daily return rates of enhanced funds are mostly higher than passive funds
Summary
Lijun Chen13* Yanxi Li1 Chenchen Ding[1] Shaohong Sun[2 1].School of Economics and Management, Dalian University of Technology, No 2 Linggong Road, Dalian. Huizhan Road, Dalian 116023, China 3.China futures Market Monitoring Center, No.[5].
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