By Liu Yunzhong

Date:2002/10/14

Abstract:

The research of the fund governance theory indicates that there is only second best linear return, and investors wish the managers of the fund prefer risk. Relative returns based on the market yield can not produce more optimal promotion than the simple linear returns. But while more funds play in one game, the relative returns will provide more information. Open-end fund will abandon managerial fee durably. The competition for the occupation future among the managers makes the fund managers who's occupation is short adopt routine tactic.