as of December 29, 370 funds (A / C shares are calculated separately) were liquidated during the year. The reason for the liquidation of most funds is that the net asset value of the fund is less than 50 million yuan for 60 consecutive working days.
Since this year, the “mini base” has suffered intensive liquidation, and many funds with poor performance and relatively small scale have left the market. The reason for the liquidation of most funds is that the net asset value of the fund is lower than the contractual limit.
In addition, the “short-lived base” appeared frequently during the year. In the liquidation fund, more than 50 funds (A / C shares are calculated separately) have been established for less than one year, so they have no choice but to enter the liquidation procedure.
liquidation of more than 300 funds
According to the data of East Money Information Co.Ltd(300059) choice, as of December 29, a total of 370 funds (A / C shares are calculated separately) were liquidated during the year. The reason for the liquidation of most funds is that the net asset value of the fund is less than 50 million yuan for 60 consecutive working days.
On December 28, Huafu fund and CCB fund respectively announced that Huafu China bond – 0-5 year medium and high-grade credit bond income balance index fund and CCB CSI 1000 trading open-end index securities investment fund have had a net asset value of less than 50 million yuan for 60 working days and 50 working days respectively. In order to safeguard the interests of fund unitholders, according to the fund contract, there is no need to hold a general meeting of fund unitholders, and the fund will enter the fund property liquidation procedure according to law.
Among them, CCB CSI 1000etf entered the liquidation procedure less than half a year after its establishment. CCB CSI 1000etf was established in July 2021 and started the property liquidation process on December 28. Since its establishment, the income has been 1.08%.
Jinying Tianxin regularly opened bonds, industrial China Securities Fujian 50ETF, Jiutai Tianchen quantitative new power, Yinhe Zhenxuan Multi Strategy hybrid, Penghua Xingli hybrid and other funds all entered the liquidation process in December.
Most of the funds being liquidated are “mini funds” with a net value of less than 50 million yuan or poor returns.
“The reasons for the liquidation of each product are different, but most of them are due to the poor performance of the product, and then the investors finally choose to redeem. The net value of the fund and the number of holders continue to decrease, and the fund is automatically terminated. However, some of the liquidated funds are due to the strategic adjustment of the company.” A person from a public fund told the international finance news.
The above public offering people pointed out that the mini fund is facing liquidation, which is a benign elimination. Because if investors choose to vote with their feet, it shows that the market is not optimistic, or they do not have much confidence in the future of the industry. From this perspective, in fact, the liquidation of the fund is a virtuous cycle of the market and ensures that the market is in an effective and reasonable mechanism for a long time.
“short-lived groups” frequently appear
Since this year, “short-lived groups” have appeared frequently. In the liquidation fund, more than 50 funds (A / C shares are calculated separately) have been established for less than one year, so they have no choice but to enter the liquidation procedure.
Both Minsheng plus yinxingli hybrid and Minsheng plus yinrunli hybrid were established on April 27, 2021, but the contracts of the two funds were terminated and entered into liquidation procedures on December 21 and December 1, respectively.
During the year, some funds with a high proportion of institutional investors became “mini funds” after large redemptions, and finally fell into the quagmire of liquidation.
Yinhua CSI 800 auto parts ETF was established on June 24, 2021, with a total issuance scale of 241 million yuan and 1558 holders. The fund listing announcement shows that institutional investors hold 71.92% of the fund shares and individual investors hold 28.08%.
The top ten holders of Yinhua CSI 800 auto parts ETF are institutional investors, among which Yinhua Chang’an capital management (Beijing) Co., Ltd. holds the most fund shares, accounting for 33.2% of the total fund shares; The second largest holder is Huatai Securities Co.Ltd(601688) , with a share of 8.3%. Less than five months after its establishment, the fund entered the liquidation procedure on November 5 because the net asset value of the fund has been less than 50 million yuan for 50 consecutive working days.
Wells Fargo China Securities esg120 strategic ETF was established on June 16. The fund listing announcement shows that institutional investors account for 97.95% of the total share of the fund. UBS AG holds 40 million fund shares, accounting for 16.57% of the total fund shares. On December 15, the fund entered the liquidation procedure, which was less than six months from its listing.
BOC Chengli hybrid, also established in June this year, with a total issuance scale of 207 million yuan, also entered the liquidation procedure less than five months after its establishment because the net asset value of the fund was lower than the contractual limit.
Jingshun Great Wall Taiyuan return and Jiutai Ruicheng were established in less than four months, and entered the liquidation procedure because the net asset value of the fund was lower than the contractual limit.
In addition, several funds such as Hua’an Dingli hybrid, ChuangJin Hexin core assets hybrid and Changsheng value discovery stocks fell into the “quagmire” of liquidation less than a year after their establishment.
“From the perspective of the development of the fund industry, the survival of the fittest is a necessary means for the fund industry to maintain professionalism and continuously improve competitiveness, so liquidation is in line with the market law of the development of the fund industry.” Li Yingying, wealth management partner of private placement paipai.com, told the international finance news.
(International Finance News)
