New products are difficult to develop, the stock of “mini base” increases, and the management pressure of public funds continues to increase in the first quarter of 2022.
Although existing institutions have focused on optimizing stock products and suspending the release of new products, the reality is not optimistic. According to statistics, 21 products are now the exclusive “guard” of the employees of the fund company, and the total scale is often “miniaturized”.
In recent days, several public fund companies have announced that their products may trigger the termination of fund contracts. As of April 11, 15 products this month have prompted liquidation risks. According to public information statistics, as of April 10, a total of 53 fund products issued liquidation reports this year, an increase of more than 20% year-on-year compared with 43 in the same period in 2021.
Some analysts pointed out that fund liquidation may be affected by factors such as poor long-term performance of product net value and poor market environment. At the same time, fund liquidation may also be related to the asset management ability of fund managers. Recently, after a round of market adjustment, it has also accelerated the efficiency of the survival of the fittest in the whole industry, making it easier for small and medium-sized institutions to fall into situations such as large redemption, centralized redemption, and even a significant reduction in net worth.
industry’s new products have greatly reduced the momentum
Affected by the decline of a shares, the momentum of new products in the industry has been greatly reduced this year, and the management pressure of fund companies on old and new products has continued to increase. Some people in the public offering community admitted that the top priority is to optimize the structure of stock products and suspend new development.
“The company has several approvals on hand and equity bonds. It has not issued new products since April. It is just the company’s sales strategy. It is normal for the market to do business.” When communicating with the reporter of the daily economic news, a relevant person of a public fund company from Shanghai said that the so-called business holding is to strengthen the performance of old products and do not want to continue to develop new homogeneous products.
However, there are many discussions about the quality of stock products in the industry. After all, in terms of active stock selection, there is a lack of stable and effective investment track in the last half of the year. The person admitted that each company has a mini fund of no less than 50 million yuan, especially equity products, “liquidation or the company’s strategic treatment of the mini fund”.
It should be noted that there are a large number of mini funds in the current market. Although some have been established for less than 3 years and have not reached the scale and holder assessment conditions, most of them still face the problem of weak scale growth. Among them, there has been a situation that the internal employees of the fund company are exclusively “on guard”, and the “free radical” is changeable and the “self-contained radical”.
Statistics show that by the end of the disclosure of the annual report in 2021, the number of fund products existing in the whole market has exceeded 15000 (counting all shares), of which 8443 are held by internal employees of the fund company. Among the holders of 82 funds, the proportion of internal employees of the fund company is 50% or more, and the other 21 are all held by their own company personnel, with a proportion of 100%. Most of them are funds established since 2020, and the scale of most products has fallen to about 100000 yuan, almost empty shell products. If China Securities Co.Ltd(601066) Wenyu dingkai C, the scale has reached 10100 yuan at the end of last year; More than ten such as Ping An Yuanfeng medium and short-term debt C and BOC new power C have a scale of less than 10000 yuan.
Although the scale statistics of the liquidation standard are based on all fund shares, the reporter of the daily economic news found that among the funds exclusively purchased by the internal employees of only 21 fund companies, the total scale is not less than 100 million yuan, and some have been less than 50 million yuan. For example, the total scale of Ping An Dinghong was 08 million yuan in last year’s annual report, and all its class C shares are held by the employees of the fund company; In addition, similar situations also occurred in Soochow Anxiang and Soochow alpha.
However, most of the so-called “self owned funds” are fixed income products. Previously, there were more exclusive purchases by fund companies, but it is rare for equity products to be ignored. Statistics show that looking back to 2020 and 2019, there was no case of employees of relevant fund companies holding their own equity products, accounting for 100%. This phenomenon may be related to the self purchase mode opened by many companies last year. As far as the rescue fund is concerned, it has little effect. The reporter noted that even though the proportion of people holding products above the scale of 50 million yuan has increased, the scale of the fund has also decreased compared with that before.
Some analysts believe that the institutional blessing reflects the adherence to the long-term investment belief, while the basic people’s risk appetite under the weak market continues to decrease. If the superposition performance continues to decline, the self purchase behavior may not slow down the miniaturization process of relevant products.
scale disturbance fund company profit
Fortunately, the market mechanism of survival of the fittest continues to force fund companies to optimize their stock. As mentioned above, the disposal of mini fund can promote the manager’s product line optimization and continuous marketing effect. Moreover, scale is also the core factor disturbing the company’s profits and investment and research expenditure.
Zhang Meng, an analyst at Tianxiang investment consulting, said that generally speaking, the fund profits of head public funds in the market tend to be larger, because the scale of head public funds is larger, which can naturally generate more profits under certain performance.
Zhang Meng believes that the huge scale of head public funds can also support better investment research teams and investment research expenditure, which often plays a positive role in performance. Under the same level of fund scale, the fund with better performance will create more fund profits.
However, in terms of the current market environment, both sides of stocks and bonds face many uncertainties. While the difficulty of investment increases, it also continues to test the active management ability of fund companies.
On April 11, the Shanghai and Shenzhen stock markets collectively fell, and more than 4000 listed companies fell. According to the analysis of Great Wall Fund, the most direct and primary factor affecting the trend of A-Shares is at the macro level. At the same time, some macro factors are transmitted to the real economy, which has temporarily suppressed the fundamentals of some industries and companies, and further exacerbated the sad expectations of investors.
On April 11, the interest rate spread of China US 10-year Treasury bonds showed an upside down for the first time since 2010. Li Xun, the investment manager of the fixed income Department of Great Wall Fund, said that it was mainly due to the difference in the orientation of monetary policy between China and the United States – in order to curb the rising inflation, the Federal Reserve continued to revise the tightening path, while the pressure on China’s steady growth increased, and the monetary policy continued to loosen.
Great Wall Fund said that in the case of no significant improvement in macro factors, the market probability will be dominated by shock consolidation, but at the same time, we should not ignore the opportunities brought by the continuous development of stable growth policy and the outstanding fundamental performance of some listed companies. We will continue to grasp the main line of balance and pay close attention to policy developments.
