Valuation Of Close-end Fund Based On EVA

Under the guideline of "accelerating the development of institutional investors at an unusual speed", mutual funds have emerged as one category of the most important institutional investors in Chinese securitize market during the six years since their debut. As more and more new funds are being established, studying of fund draws a lot of attentions. In the current, the research of closed-end fund mainly concentrates on the evaluation of net value and achievements while probes little in the field of value.The valuation of fund has both theoretical and practical concerns. The value of closed-end fund roots in effective combination of closed-end fund capital and the ability of securities insight. Only high efficiency fund that produce immense amount of treasure can attract more investors. The value of closed-end fund determines the price of closed-end fund, and the price of closed-end fund fluctuate accounting to the value. In a long view, the price will be equal to the value, although price can't always be equal to value in short time.In order to unit the profit of investors and managers of closed-end fund, EVA estimate system was applied to measure the value of closed-end fund. Considering the features of capital belonged to closed-end fund, which includes good liquidity and low ratio of liabilities, a new estimate model of closed-end fund has been built up according to the principle of EVA.The article selected five early closed-end funds as sample in demonstration research (closed-end fund Kaiyuan closed-end fund Jintai closed-end fund xinghua and closed-end fund Puhui). Based on half year's data, the whole sample was divided into four groups. The first group includes all the data since the closed-end fund was established; the second group includes all the data each five years; the third group includes all the data each three years; the last group includes all the data each year. By analyzing all data, two conclusions can be drawn in that the value of closed-end fund based on all the data and each three years and each year is closely related to its price; the value of closed-end fund based on long-term is higher than its price while the value based on short-term is lower than its price.