The Trust Obligation Research On The Managers Of China's Security Investment Fund

Securities investment fund industry plays a vital part in contemporary financial system with great significance. In recent years, the industry is developing rapidly in China. However, the study of related theory has lagged behind the reality. Compared with developed countries, the existing fund legislation in China lacks of perfection, particularly in the perspective of trust obligations of the fund managers. In theory, it lacks of details in terms of trust obligation of fund managers. In practice, the phenomenon that fund managers are against the interests of fund holders happens repeatedly. Therefore, the interests and rights of the fund holders can hardly be guaranteed. The running order of the fund market and the confidence of the fund holders have once suffered a great disturbance. A typical example is the"Fund Muckraking"in China's securities market at the end of the year 2000. The muckraking reveals that a number of fund managers do not start from the interest of the fund holders but from their own benefits or the shareholders under control, such as earning higher management fees. Today although the old"Fund Muckraking"has passed over years, the misconduct hidden in China's fund industry has not gone far away. Furthermore, the tricks become more surreptitious and the forms become more various. Many fund managers often play"net games"secretly with the purpose of increasing the risk of fund portfolio or controlling the high order receiving of the shareholders and transferring fund benefits. What's worse, confronted with the misconduct, the fund holders in China can not seek help according to the existing law and regularities, which leads to the consequence of low morality in fund management industry, low efficiency in fund running and a big loss in this field."The same knife cut bread and fingers". Although the existence of the natural factors makes us difficult to judge that the misconduct is the only factor to give rise to the loss of fund performance. But the phenomenon that the fund managers intensified the misconduct will undoubtedly detract from the fund income, involving the improvement of the fund performance. It is difficult to imagine that under the condition in the fund market people's interests and rights can hardly be guaranteed will be further favored and get active participation, not to mention that the future can get sustained, healthy and rapid development. Therefore, with the strengthening status and function of investment funds in China's national economy and the securities market, it has become one of the most important topics about building legal rules of securities market that how to build a set of strict and effective trust obligations of the fund management for the time being and then radically change the situation that the interests of fund holders has been infringed. To the end, the author starts from the description of the trust obligation of the securities investment trust fund managers and undertakes the analysis of the trust obligation mechanism of the fund managers from interior to exterior aspects with the purpose of specifying the perspectives of duty of loyalty and duty of care.