The first batch of pension financial products are highly sought after in the market.
The reporter of China Business Daily found that the performance comparison benchmark of the issued pension financial products is between 4.8% and 8%. From the perspective of asset allocation, at present, the issued products are mainly fixed income, the proportion of equity assets is not high, and the risk level is between R2 and R3.
To find the optimal balance between the Impossible Triangle of investment – risk, return and liquidity is the focus of pension financial products. The person in charge of financial management related business of BOCOM said that for pension financial management, on the one hand, it is necessary to further develop investment strategies suitable for long-term liabilities and enrich investment strategies; On the other hand, we should further diversify risks on the existing basis, including credit risk and market risk.
On March 1, the pilot of pension financing was officially expanded from “four places and four institutions” to “ten places and ten institutions”, and the upsurge of pension financing is gradually approaching.
trade time for space
On March 1, the pilot of pension financing was officially expanded from “four places and four institutions” to “ten places and ten institutions”, and the pilot area was expanded to “Beijing, Shenyang, Changchun, Shanghai, Wuhan, Guangzhou, Chongqing, Chengdu, Qingdao and Shenzhen”; On the basis of the original ICBC financial management, CCB financial management, CMB financial management and Everbright financial management, the pilot institutions added six financial management companies, namely “Bank of communications financial management, Bank of China financial management, Agricultural Bank of China financial management, China Post Financial Management, xingyin financial management and Xinyin financial management”.
Corresponding to the active layout of institutions, it is the pursuit of the first batch of pension financial products in the market.
According to the data disclosed by Puyi standard, among the products issued by the first four pilot institutions, the first phase of CCB financial “enjoy” fixed income closed pension financial products in 2021 raised an amount of 2 billion yuan in only half a day; CMB financial management “take care of Ruiyuan and be stable for five years and close No. 1” also ended the raising ahead of schedule, with a total raising time of 10 days and a total raising amount of 8 billion yuan; Everbright financial’s “Yixiang sunshine pension financial product orange 2026 phase 1”, both in terms of raising scale and raising speed, has reached a new high in the sales of financial products of China Everbright Bank Company Limited Co.Ltd(601818) Qingdao Branch.
The reporter learned from the aspect of ICBC financial management that since the company’s first pension financial management product – “Yixiang Antai” fixed income closed net value pension financial management product was officially launched in Wuhan and Chengdu on December 6, 2021, the amount raised in the first phase of the product has exceeded 3.088 billion yuan, a total of 13900 customers participated in the purchase, and the per capita purchase scale is 222000 yuan.
“The income advantage of pension financial products is obvious, and the performance comparison benchmark is between 4.8% ~ 8%, while the average performance comparison benchmark of other financial products of financial companies is mostly between 4% ~ 4.5% Liu Yinping, an analyst at rong360 Digital Technology Research Institute, said.
Wang Liting, a researcher of Puyi standard, told reporters: “the average investment cycle of pension financial products is generally higher than that of ordinary financial products. It takes a long time for funds and has relatively weak liquidity. This is one of the main reasons why the average performance comparison benchmark of pension financial products is higher than that of ordinary financial products.”
“We have also been paying attention to the products issued by the first batch of pilot wealth management companies. At present, the performance comparison benchmark of the issued pension wealth management products is relatively high. How to achieve higher income and maintain and increase the value of residents’ pension money is our most concern.” The person in charge of financial management related business of BOCOM talked about it.
“Pension financial products should adhere to the concept of value investment, especially through the long-term closed operation mode, more effectively use the duration strategy and leverage strategy in bond investment, improve the income of fixed income, adopt scientific and reasonable position control in equity investment, better resist cyclical fluctuations, and strive to provide investors with sustained and stable investment return.” The person in charge of China Post Financial Management said.
The person in charge of xingyin wealth management related business also introduced that the equity assets invested in pension wealth management products are mainly equity assets in areas such as national strategies and industrial policies and the demand for supply side structural reform, including but not limited to new energy, new materials, semiconductors, information technology, biomedicine, high-end equipment manufacturing and other industries representing the direction of China’s economic transformation, so as to provide long-term funds for the development of the capital market. “Focusing on high-quality targets with large long-term growth space, good performance sustainability and reasonable valuation, we are confident to bring excellent investment returns to pension financial products through long-term investment and value investment, so that investors can share the dividends of China’s economic growth.”
how to maintain robustness
In the view of insiders, what attracts customers to buy pension finance is that the product has the dual attributes of relatively high yield and robustness. In terms of pension objectives, conservatism is obviously more important.
From the perspective of financial management, the elderly investors are mainly responsible for financial management, but from the perspective of the actual age of 40 ~ 50, the elderly investors are mainly responsible for financial management.
Chen Xuehua, a researcher of Puyi standard, said that investors who buy pension finance take pension as the main purpose. Therefore, in the process of investment and operation, pension financial management should pay attention to robustness. The investment target is mainly fixed income products, while giving due consideration to income, but it is not allowed to invest in stocks with large price fluctuations.
The person in charge of relevant business of xingyin financial management stressed that pension financial products should adopt a more stable investment strategy and pursue the long-term steady value-added of pension according to the principle of matching risk and income, rather than for the purpose of achieving high income.
From the perspective of investment strategy, the person in charge of relevant business of China Post Financial Management said that most pension financial products adopt target date or target venture capital strategy, superimpose CPPI strategy, dynamically monitor the proportion of equity assets and reasonably balance risks. “CPPI strategy is an internationally accepted portfolio insurance strategy. It mainly adjusts and modifies the proportion of equity assets and fixed income assets in the portfolio according to market fluctuations through quantitative analysis, so as to ensure that the value of the portfolio after a period of time is not lower than a predetermined target value, so as to maintain and increase the value of the portfolio.”
“Under the guidance of the broad asset allocation framework, based on the research and analysis of the economic cycle, macro policies, industrial trends, cost performance of stocks and bonds and market sentiment, build positions steadily according to the goal of absolute return and carefully select high-quality investment targets.” The person in charge of xingyin wealth management related business said, “in order to control portfolio risk, pension wealth management products adopt risk budget management thinking. Take fixed income assets held to maturity as the bottom position, accumulate safety cushion, and calculate the allocation proportion benchmark of portfolio risk exposure and market valuation assets according to the product risk budget.”
In addition, the person in charge of financial management related business of BOCOM analyzed that to ensure the stability of pension products, financial companies should strictly control the investment scope and investment proportion according to the product contract; In addition, reasonable risk budget and maximum pullback target shall be set in sections, reasonable asset allocation center shall be set in stages, and pullback shall be controlled through low wave and stable allocation strategy. Especially in the early stage of warehouse establishment, relatively stable fixed income assets will be preferentially allocated to accumulate safety cushion for product net value, and the proportion of equity assets will be gradually increased with the increase of product net value.
At the same time, combined with the characteristics of pension, pension financial products are specially equipped with multiple risk protection mechanisms such as smoothing fund, risk reserve and impairment reserve, so as to further enhance the risk resistance of pension financial products.
At present, the second batch of approved financial institutions have not issued pension products yet. However, the second batch of products issued by the first batch of pension financial management pilot institutions have been upgraded on the basis of the first batch of products. The reporter noted that product upgrading is mainly reflected in product liquidity and robustness.
Yu Yaqin, a researcher of Puyi standard, told reporters that the second batch of pension products were upgraded by CCB financial management and ICBC financial management. Among them, the first batch of pension products of CCB financial management are closed products, and the new round of pension products are open products that are regularly opened on a monthly basis, and the liquidity of the products has been improved; The risk level of the first batch of pension products of ICBC financial management is medium risk, and the products issued in the new round are medium and low risk, which enriches the product shelf of ICBC financial management.
It is worth mentioning that under the background of the recent sharp withdrawal of “fixed income +” financial products, the market is also generally concerned about whether pension financial management will be affected.
Yu Yaqin pointed out that the reason for the sharp withdrawal of “fixed income +” products is that the recent international situation is changeable and the capital market is volatile, so the fixed income market and equity market have fallen sharply, but the overall impact is short-term.
“The disturbance of these medium and short-term ‘fixed income +’ financial products to investor sentiment precisely reflects the advantages of the long-term operation mode of pension financial products.” The person in charge of China Post Financial Management related business told reporters, “pension financial products generally adopt a long-term closed operation mode, give product managers more space at the investment end, do a good job in asset rotation through large asset allocation strategies, dynamically adjust the proportion of stocks and bonds, realize cross cycle investment and better protect the pension income of investors.”
