A Study On The Relationship Between Fund Manager 's Personal Characteristics And Fund Performance

With the continuous development and maturity of China’s capital market, the fund industry has become one of the rapidly-growing sub-sectors of the financial industry and has been used by more and more investors. Up till March,2013, there are totally70public fund companies in China,1241public fund products, and2.99trillion yuan of net asset value. Fund investments can be described as an important investment tool in financial investment field.The research on issues related to the fund is also deepening. But in our country, the majority of the Fund’s research is mainly focused on the qualitative and quantitative methods to establish Fund’s performance evaluation system. Researches starting from the point of view of the fund manager, to study the characteristics of Fund Performance are less. But as the Fund’s direct controller, fund managers determine the investment decisions of the fund. They, with no doubt, play a very important role in fund performance. If we can find out the relationship between the r characteristics of fund manage and Fund performance and do further research in this direction, it is very necessary. The results can help investors to make rational choices among different fund managers and funds; help fund companies to select and train the fund managers; help fund managers to clear the direction of their own development; help the regulatory authorities to develop policies to provide a healthy environment for China’s fund market. Therefore, this article selected the point of view of the fund managers to study the relationship between personal characteristics of fund manager and fund performance.This research is based on researches on the personal characteristics of fund managers and fund performance relationship from both domestic and abroad. There are eight independent variables in this article, which are age, gender, degree, whether the manager has a composite professional background, whether has Industrial business experience, the number of funds has been worked, the number of fund companies has been worked, time of being the current fund manager. And five control variables, which are length of Fund Company established, number of funds in the fund company, size of Fund Company, Fund size, length of Fund established. There are four dependent variables, which are Sharpe Ratio, Standard Deviation, Timing ability and Stock selection ability. Then respectively do multiple regressions of the dependent variables in three time periods, which represent three kinds of market:bull market, bear market, turbulent session, in order to analyze whether or not these eight personal characteristics of fund manager have significant impact on fund performance and what characteristics are more suitable for fund managers to create a good performance. By viewing the results of empirical analysis, among the eight variables, industrial work experience, the number of funds has been served, and the number of fund companies has been worked are indeed able to have a significant impact on fund performance to some extent. Industrial Work Experience and number of fund companies has been worked have negative correlation on fund performance. On the contrary, the number of funds has served has positive correlation on fund performance. The main innovations of this paper are:put forward three explanatory variables (Industrial experience, worked a number of funds, serving a number of fund companies) which others didn’t analyzed; compared three different market conditions of China; used step-by-step regression method in order to make the results more stability.