Bank financial management companies are also beginning to “roll in”?
China Securities News · China Securities Taurus reporter combed the announcements of many bank financial management companies and found that since the beginning of the year, many companies have reduced the fixed management fee and sales service fee rate of products, and the fixed management fee of some products is even as low as 0. In addition, some companies have raised the excess management fee rate of their products, which is rare in the industry.
Insiders said that reducing the fixed management fee and sales service fee rate can not only benefit customers, but also attract more new and old customers and improve the scale of assets under management. As for the increase in excess management fee, it may be related to the increase in the difficulty of making money under the current market conditions, and the increase in rate is reasonable.
many companies offer rate concessions
On February 22, BOC wealth management announced that in order to give back to customers, the company will offer preferential rates for “BOC wealth management” stable wealth “fixed income enhancement (closed) phase 009 in 2022” from March 2, 2022 to March 28, 2023, and the sales service fee of class A shares will be reduced from 0.30% (annualized) to 0.15% (annualized); Class C share sales service fee will be reduced from 0.40% (annualized) to 0.10% (annualized).
Source: Announcement
Some products have zero rate. On February 21, BOC wealth management announced that the company would give preferential treatment to the fixed management fee rate of “BOC wealth management – Wenfu (14 day holding period)” products from February 22 to March 31. The fixed management fee of products would be reduced from 0.10% to 0.00%, and the fixed management fee of products would be reduced from 0.10% to 0.05% from April 1, 2022.
Source: Announcement
The official website of Bank Of Communications Co.Ltd(601328) shows that recently, BOCOM financial management has also offered preferential rates for many financial products. Taking “bocom financial management enjoys smart Huili closed No. 1 financial product for one year” as an example, from February 9, 2022 to March 7, 2023, the fixed management fee will be given a phased discount, which will be reduced from 0.20% per year to 0.05% per year.
Source: Announcement
Since 2022, the Bank of southern China has also offered preferential rates for some financial products. Taking the “Nanyin financial management Zhulianbihe Zhiyuan balanced ESG theme (minimum holding 364 days)” as an example, the fixed management fee was reduced from 0.8% per year to 0.4% per year from February 7 to June 30.
Source: Announcement
The reporter checked the information of several products and found that most of the preferential rates are new products, which is similar to the previous situation. For example, the theme of ESG balance (minimum holding for 364 days) of Nanyin financial management is to start raising from December 20, 2021. Bocom financial management enjoys smart Huili for one year. The closed-end No. 1 financial product will be raised from January 26, 2022.
Zhou Yiqin, a senior financial regulatory policy expert, said that there may also be the following two reasons: first, with the increase of the overall scale of wealth management companies, the pressure on the operating performance of wealth management companies has been released, and the rate is no longer a rigid requirement. At present, there is great pressure on the scale ranking of various financial companies, especially head financial companies, which can attract some new customers by reducing the rate. Second, the market funds have been loosened recently, and the yield of financial products has declined. Due to their involvement in the equity market, the net value of some financial products has fallen more. The move of financial companies is also to appease customers by making profits.
excess management rate increase
Different from the fixed management fee and sales service fee, the excess management rate of many products has been raised recently, which is relatively rare.
On February 18, ABC financial announced that from the closing period (including the same day) starting from April 6, 2022, the performance comparison benchmark of RMB financial products in the fourth phase of “ABC enterprising · half year opening” fixed income enhancement was adjusted from 3.55% to 3.75%. Since April 6 (inclusive), the excess performance share of product managers has been increased from 0% to 40% per year.
Source: Announcement
On February 23, Huaxia financial announced that the excess management rate of Huaxia financial longying fixed income one-year regular open net worth financial products (No. 007) is to be adjusted from 30% to 50%.
Source: Announcement
As for why the excess management fee was raised, some insiders told reporters that this may be due to the increase in the difficulty of making money of financial products under the current market conditions and the possible decrease in management fee. By raising the excess management fee rate, the management fee income can remain stable. In addition, the excess management fee, as the performance of the asset management ability of financial companies, is also reasonable to increase under the current market conditions.
Puyi standard report pointed out that at present, public funds are also reducing the rate, and are also trying on the excess management fee. In the future, bank financial companies can make more exploration in the rate innovation and attract different investors through the differentiated design of products.
