Mix-management Fee Incentives And Evidence On The Mutual Fund

The fund industry development is quick in recent years, along with the fund manager manage a more and more huge asset, the principle agent relationship between the fund manager and the fund investor becomes obvious. Since the lack of an effective management fee mechanism, the fond manager in China take the action that damage investor benefits probably. We have designed a mix-management fee mechanism under combining the present fix management fee with an incentive fee as a floatable management fee ,then used the data of China growth fond 2002-2007 year to make a substantial evidence analysis. We discovered mix- management fee mechanism is more valid than present fix- management fee mechanism.