The Research On Influence Of Fund Manager Personal Characteristics On Fund Performance And Its Mechanism

At present, the research on funds in China mostly focuses on how to evaluate fund performance. Less attention is paid to fund manager. Actually fund managers are the direct manipulator of the fund, they determine the fund’s investment strategy and have great impact on the fund. The ability of fund managers is one of the most crucial factors to the fund performance, so, focus on fund managers, do more research on facters which reflects the abilities of fund managers is meaningful.In this paper, we do refer to the relevant papers both at home and abroad, and analyze the empirical data of China fund market by choosing the cross section regression. By introducing the fund manager’s investment style variables which reflects fund managers’ behavioral factors, we discover the mechanism how personal characteristics affect the performance of the fund. By separating the bull and bear markets samples, we compare the relationship between individual characteristics and fund performance under different market conditions. At last by introducing extreme performance distribution into the model, the study has been expanded.The results show that impacts of gender, master’s degree on fund performance is passed by some investment style variables to some extent, such as turnover rate, concentration on stocks and concentration on industries. Under different market conditions, the personal characteristics of the fund managers’ impact on the performance of the fund shows a lot of differences. In the bull market, master degree has a significantly negative effect on risk and risk-adjusted return of the fund, the impact of amount of funds under the managers’ management on the risk is significantly negative, however, these impacts in the bear market is not significant. And carrer time in the two kinds of market has a significant positive impact on risk-adjusted return of the fund. No matter in a bull market or in a bear market, master’s degree significantly reduces the possibility of the fund manager’s fund get into the top 10% of the performance ranking, tenure has a remarkable positive effect on the entering of the fund into the ranking of buttom 10%, and the carrer time can reduce the probability of the fund into the ranking of buttom 10%.