The trend of institutional ownership of public offering products is obvious with the increase of scale nearly 9 times in 12 years.

 The trend of institutional ownership of public offering products is obvious with the increase of scale nearly 9 times in 12 years.

According to the data of Galaxy Securities Fund Research Center, as of June 30, 2019, after excluding the monetary fund, the market value of the funds held by investors totaled 5979.033 billion yuan. Among them, individual investors hold 2151.105 billion yuan, accounting for 35.98%, while institutional investors hold 3827.928 billion yuan, accounting for 64.02%.

Specifically, institutional investors hold 90.97% of bond funds, 48.69% of stock funds, 37.24% of monetary funds and 26.07% of mixed funds. Among them, the market value of bond funds held by institutional investors exceeded 1 trillion yuan at the end of 2016, and has been rising in the past three years. As of the first half of this year, the market value of the bond base held by institutional investors has reached 2.85 trillion yuan.

Since this year, many explosive bond bases have the image of institutional investors. Taking Minsheng Canadian Bank of China Bond Index Fund for 1-3 years as an example, the initial size of the fund is 22.4 billion yuan, but the number of subscribers is only 243, indicating that institutional investors have become the main holders.

Galaxy Securities Fund Research Center said that institutional investors preferred stock funds with clear style, less participation in mixed funds with unclear style, and institutional holding of IMF market value was relatively stable, but individual investors flocked to buy IMF, so the proportion of institutions was diluted. The exemption of enterprise income tax from the dividend income from the purchase of funds by enterprises is an important driving force for the increase of the proportion of institutions. Galaxy Securities Fund Research Center analysis.

On the one hand, institutional investorsrecognition of public funds is increasing; on the other hand, the market value of non-monetary funds held by individual investors has finally returned to more than 2 trillion yuan after nearly 12 years, but the difference is still 62.1457 billion yuan from the 2007 peak. At the beginning of the establishment of public fund, it is to raise funds for the public. Its essence is to be entrusted to manage money on behalf of others. Many insiders reflect that this is the lost 12 years of the public fund industry.

According to the analysis of the deputy general manager of a fund company in Shanghai, between 2008 and 2018, the stock of non-monetary funds held by individuals fluctuated from 1.5 trillion yuan to 1.9 trillion yuan. In fact, this period has experienced several bull markets, such as the market rebound in 2009, the growth enterprise market bull market in 2014-2015, and so on. But the scale of non-monetary funds has not increased significantly, which means that investors have not entered the market at all. Most of the sales agencies are actually playing the stock game. The person said.

In his view, this has a lot to do with the poor investment experience of investors. Chinas asset management industry has just started. After the new regulations, some newly converted products gradually withdraw from the market, and the investment value of net-valued fund products will be further highlighted. This requires fund companies to introduce high-quality products, and fund sellers to do a good job in guiding work.

The Galaxy Securities Fund Research Center believes that it is necessary for public funds to undergo a thorough supply-side structural reform, combining with the deferred commercial endowment insurance policy of personal tax, to attract the inflow of funds from individual investors and hold them for a long time. At the same time, public funds should accelerate the reform of fund sales institutions, such as around the theme of attracting long-term funds, encouraging fund sales institutions to innovate in various ways and forms.

Source: Ren Hui_NBJ9607, responsible editor of Shanghai Securities Daily