The Effects of Manager’s Tenure on Mutual Fund’s Risk, Fee, and Performance

• Main Authors: Chen.Hsi Hsin, 陳錫新
• Other Authors: Sheng-Ching Wu
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/48740235384705745113

碩士 === 大葉大學 === 管理學院碩士在職專班 === 103 === A mutual fund investment is a pretty good choice for investors who want to have a simple and convenient way of investing their money with low initial deposit requirements. However, the fund’s manager plays the crucial role of creating a fund that has low risks and low fees but high income return. The main purpose of this article is to explore the effects of a manager’s tenure on the mutual fund’s risks, fees, and performance. The manger’s seniority within the mutual fund company was also taken into account in this research. The following were used in order to individually verify these two important factors: in the aspect of Explained Variables, the Annualized Standard Deviation (12M) , Beta(12M), total cost of the total size ratio(%), Return(3M) (%), Shsrpe(12M), and Jesen(12M) were the indicators of the measurements. Descriptive statistics was first used to explain the effects of the tenure and seniority on the indicators. Then they were divided into two groups for T analysis based on whether their tenure and seniority were each greater or equal to 24, 60 months. Further regression analysis was used to discuss and explore the effects of a manager’s tenure on the mutual fund’s risks, fees, and performance. 159 open-ended Taiwanese equity funds from January of 2009 to December of 2013 were collected and used as samples for this research. On the assessment of risk, a manager’s tenure and seniority presents significant correlation on the fund risk. On the assessment of fees, a manager’s tenure and seniority has little effect on the fund fees. Therefore, the manager’s tenure and seniority is not associated with the overall expense of the fund. On the assessment of performance, a manager’s tenure and seniority presents significant positive correlation on the fund performance. Investors are advised to choose funds that are managed by managers who have longer tenure and seniority for better income return of their investment. Keyword: Manager,Risk, Fee, Performance, Tenure, Seniority, T test Regression Analysis