Evaluating performance of Chinese and Japanese mutual funds´ listed in NASDAQ stock exchange

This study measures the performance of Chinese and Japanese mutual funds which are listed in Nasdaq Stock Exchange for period 2007 until 2010. This period is chosen because in 2006 both Japanese and Chinese mutual funds experienced bull market, but because of global economic crises happened since 2008, both of their performance has dropped. The objective of this research is to analyze whether the Chinese mutual funds have a better performance than Japanese funds during the economic crises or vice versa. The measurement tools that have been used are: Jensen Index, Treynor Index, Sharpe Index, and Snail Trail method. Jack Treynor, William Sharpe, and Michael Jensen identified the implications of using CAPM for evaluating the performance of investment advisers. These methods have received the most acceptance and the most widely used method in performance studies. This study discovers that the Chinese mutual funds seem to outperform the Japanese mutual funds even in the global economic crises. By using Snail Trail method, this study also found that the risk and the return are relative stable plotted in the 1^st and 2^nd quadrant for Chinese mutual funds.