The Study Of Fandom Fund Managers’ Spillover Effect

Based on the principal-agent problem,fund families will use star-making strategies and fund manager branding to create star fund managers to attract more cash inflows for the family.This has resulted in a number of star fund managers and a strong market response.In particular,in 2020,Yi Fangda Zhang Kun became the first fund manager to have a fandom association,and he was also known as "the top man of the public fund" for managing a scale of more than 100 billion,such a huge volume of funds also reflects the spillover effect of the fund manager’s fandom.However,this phenomenon is a product of the combination of the Internet and the fund industry in recent years,and it is very contemporaneity.At the same time,in order to protect the profits of all parties in the fund market and maintain the normal order of the market,it is necessary to conduct an in-depth study of its formation,related mechanisms,and the spillover effects.This paper analyses the path of the spillover effect of the fandom phenomenon from the perspectives of both fund families and investors through the theories of fund family star-making strategy and brand effect,limited investor attention and investor sentiment,and selects data of 383 fund managers and their funds from 69 fund companies for 15 quarters from Q1 2018 to Q3 2021,and conducts an empirical study to find that:fandom fund managers can generate some spillover effects at both the single fund and fund family levels,attracting significant cash inflows to the fund itself and to other funds in the family.The paper also examines the direction of this spillover effect and finds that funds managed by fund managers in the fandom are more likely to gain an advantage in the spillover effect and attract more significant inflows than other funds in the family,and that investors pay more attention to fund managers than to fund families.This paper uses T-tests to find that investors who choose to "chase the stars" at both the fund family and individual fund level do not achieve significant excess returns in the lagged period,and that the fandom fund and the fandom family do not earn above-average returns for investors in the short term,which indirectly proves that blindly chasing the star fund products This indirectly proves that blindly chasing star fund products is not effective.At the same time,this paper also sorts out the negative impact of this spillover effect on fund families in terms of irrational behaviour generated by the departure of star fund managers and unintended cash inflows,and accordingly puts forward suggestions and recommendations to investors,fund families and regulators.