Performance Evaluation Of China's Open-end Securities Investment Funds

Huaan chuangxing, the first open-ended fund came into existence in September 2001 which changed the phase that the fund breed was single in the sucurity market of our country. Closed-end funds were ceased to be issued in our country since August 2002, there came a stage of the rapid development of open-ended funds. Over 100 open-ended funds was founded by the end of 2004, open-ended funds have exceeded the close-ended funds whether in quantity or scale, and have become the institutional investors which holds the balance in the security market in our country. Along with the rapid development of open-ended funds, people become to concern their performance generally. The problems whether the open-ended funds can reveal the ability of specialist financing, and if they can earn favorable income for the shareholders, and whether open-ended funds can overcome the new security market of China are all the focus which are concerned by the people. Just for that reason, it becomes impendence to evaluate the performance of the open-ended funds completely and impersonality.Although the theory to evaluate the performance of the mutual fund has become very mature, and the scholars have gone deep into the positive research in the foreign countries, the research about this aspect in our country has just begun. Most of the positive performance research in our country aimed at the closed-end fund, there was little systematical and thoroughly evaluation about the open-ended funds, Especially it is almost a blank to evaluation the performance of the open-ended funds entriely and systemically. Just so, this article tries to evaluate the performance of the open-ended funds in our country nicety and impersonality through a series of positive research by the use of the performance evaluate theory in existence, on the background of the fact of the security market in our country, adapting the way to combine the theoretical analysis and positive analysis. The entire and systemic research of this article can be thought to be the first time in our country.The main contents of this article are as follows:The first part (the 1, 2 chapter) is the introduction and document summarize. This part expounded the background and the theoretical and realistic meaning of this study, it also introduced the reasearch ways and the framework and the technical route of this article.Then we reviewed the classic theory and methods which concerned about the fund performance evaluation, along with the performance evaluation methods in common use. The author also summarized the positive research results of the mutual fund performance made by the foreign scholars by the use of these methods and puts forward some opinions about the problem of the performance evaluation. The contents of this part provided with us a solid theoretical base to evaluate the performance of open-ended funds. In themeantime, the systemic sum up of the positive research result of mutual funds is one of the therotical contributions of this article.The second part (the 3,4,5,6,7,8 chapter) is the main part of the performance evaluation of open-end funds. We first introduced the 38 equity open-ended funds to be evaluated, we also chose the comparative benchmark. We then measured the risk-adjusted and non- risk-adjusted performance of the equity open-ended funds under manifold evaluating models. The revenue without risk-adjusted included the daily net value increasing ratio and the accumulative total net value increasing ratio, while the risk-adjusted revenue included the Sharp ratio, the Treynor ratio, the M2 ratio and the Jensen alpha.We find that the the performance of open-end funds in our country reveals some characteristics as follows:First, the the performances of open-end funds had great difference in different years. The funds performanced the best in 2003 while they performanced far poorer in 2002 and 200, and most funds defeated the security market. The collectivity test of the funds during two years indicated that the open-ended funds in our country incarnated the ability of specialis...