The Research On Performance Evaluation Of Sunshine Private Funds

The first sunshine private fund was born in our country in2003, the capital market has experienced development and improvement continuously, and resident’s personal wealth has cumulated with the high-income groups enlarging in especial. All these indicate that Sunshine private funds begin to take shape. According to the statistics of WIND, the number of issued Sunshine private funds has reached5771and the issuing scale has reached306.8billion Yuan until December31th,2013. Sunshine private funds are becoming a force to be reckoned with in the capital market in China. As a financial product aiming at high-end income groups, Sunshine private funds are very different from common security investment funds in mode of operation and profit model. How should individuals and institutional investors select the right financial products? Sunshine private funds or public funds, which one is better by comparison of risk and earnings? What are the factors and source in influencing the performance of two kinds of funds? Will the funds with good performance in the past continue to achieve good performance? What kind of fund manager should we choose to manage our fund assets? The answers of all these questions ask us to compare security investment funds with Sunshine private funds to carry out the research of Sunshine private funds.First, this paper deals with the present development and developing tendency of Sunshine private funds. This paper elaborates its definition and characteristics, describes its development history and current situation with similar funds and makes an expectation of its developing tendency.Then, this paper makes a comparison between the performance of Sunshine private funds and public offering funds. This paper uses net worth earnings ratio indicator, risk indicator and risk adjusted indicator to evaluate fund overall performance. It turns out that the performance of Sunshine private funds is better than that of Equity public funds while the risk of Sunshine private funds is lower, the internal fund sample performance of Sunshine private funds is divided and some exceptional Sunshine private fund’s risk is higher than the overall risk of public funds. As for the influencing factors and source of fund performance, this paper uses TM and HM model to measure the ability in selecting equity and time of Sunshine private equity funds and public funds. In selecting equity, equity public offering funds show better ability, public funds’internal ability in selecting equity is relatively balanced while Sunshine private equity funds’is comparatively divided. In selecting time, Sunshine private funds show better ability, public funds’ internal ability in selecting time is relatively balanced while Sunshine private equity funds’ is comparatively divided. As for fund performance persistence, this paper uses non-parametric test which also called contingency tables, with related statistical test, to analyze the performance persistent of Sunshine private funds and public funds from short-term, mid-term and long-term. In short-term, both funds have certain performance persistence. In mid-term and long-term, Sunshine private equity funds have no performance persistence. In short-term, mid-term and long-term, public funds’ performance persistence is better than that of Sunshine private equity funds. As for the influence of Sunshine private equity funds’manager characteristics has on fund performance, this paper uses multiple regression model to discuss the relation between Sunshine private funds’ managers’ characteristics and fund performance in different market conditions like rising, balancing and falling stage. In the rising stage, elder fund managers tend to achieve better fund performance. In the falling stage, young fund managers tend to achieve better fund performance. Fund managers who make their graduate institutions public, in other words, who graduate from elite school tend to achieve better fund performance. Fund managers with overseas study or work experience make better fund performance than those without. Fund managers with science and engineering background make better fund performance. In bull market phase, the number of funds being controlled is negatively related with fund performance. In bear market phase, the relation is just the reverse. The more fund managers allocated the better fund performance.Finally, through the aforementioned qualitative and quantitative comparative analysis of the results, and summarized the conclusions of this study. On this basis, this paper puts forward some practical and operational suggestions to investors, private fund company and regulatory authority, respectively.