The Impact Of Multi-tasking Fund Managers On Fund Performance

The rapid development of the public fund market is not only a manifestation of the improvement of capital market,but also an evidence of the improvement of the living standards in China.However,it also exposes the embarrassing situation of insufficient supply of fund managers.At present,it's normal for fund managers to manage multiple funds at the same time in China,especially in large and medium-sized fund companies.The continuous accumulation of national wealth,the rapid development of the fund market,the increasing numbers of fund products and the loss of fund managers are the current state of the public fund market in China,and the main reasons for fund managers managing many funds.In this background,this article takes 124 stock-based funds as sample to explore the influence on the performance of the funds when fund managers manage many funds and examines whether the fund managers had better not manage too many funds.The main conclusions are as follows: Firstly,whether the fund manager manages multiple funds at the same time doesn't have a significant impact on funds' excess returns,but it significantly reduces the growth rate of the unit's net worth.Secondly,the number of funds managed by fund managers will affect the implementation of their active management capabilities.When the fund managers only manage a fund,the deviation of stock positions will be higher,especially reflected in the deviation of the top ten positions.Thirdly,the more attention the fund manager focus,the better performance the fund will get.If the fund manager is more active in the allocation of top ten heavy stocks,the growth rate of the unit's net worth would be higher.And the more active the fund manager is in the choice of non-heavy stocks,the higher excess return the fund will gain.The main reason is when the fund manager manages multiple funds,he will selectively allocate attention to different funds.The shift of fund manager's attention will lead to a reduction in the deviation of fund positions,which would lead to a worse fund performance.Fourthly,from the perspective of limited attention,there isn't an optimal number for fund managers to manage.The fewer funds the managers manage,the better the fund performance is.The more funds the managers manage,the lower deviation of the total holdings and the top ten positions from the fund family.In other word,if the fund manager is less active,the less attention the fund will receive.According to the results ofempirical analysis,this article will propose some recommendations for fund investors,fund companies and regulatory authorities with the aim of strengthening healthy competition in the industry and maintaining the healthy development of the fund market.