The puzzle of refining funds: the new normalization of redemption and purchase

category:Finance
 The puzzle of refining funds: the new normalization of redemption and purchase


However, according to the data of China Securities Investment Fund Industry Association (hereinafter referred to as China Foundation Association), the total growth of equity funds from the Spring Festival to the end of May this year is about 358.429 billion, which means that in the first five months of the frequent occurrence of funds, the scale and share of equity market did not rise but fell.

This reporter learned from many sides that behind the funds, in addition to the halo of star fund managers and the money chasing effect, there are also hidden potential rules that channel institutions actively guide fund investors to redeem the old and buy the new.

New normalization of redemption and purchase

The scale of equity funds is still not rising but falling due to the frequent occurrence of funds bursting, which is related to the redeeming the old and buying the new of some fund investors.

To this end, the reporter interviewed a number of public market people and learned that this phenomenon has always existed. Some bank financial managers will encourage investors to redeem the old funds they originally held, and then subscribe to the new development fund.

Why do banks like to sell new funds and even persuade customers to redeem the old ones and buy new ones? The reporter learned from a public offering channel person that when the bank sells the fund on a commission basis, all the sales expenses (subscription fee, subscription fee and sales service fee) belong to the selling channel, i.e. the bank, and the sharing of management fee and redemption fee needs to be negotiated. The general subscription fee of new funds is not discounted, such as active equity funds. The management fee between fund companies and banks is divided into five parts according to the general management fee of 1.5%. Then 0.75% of the management fee of the bank is easily obtained every year. If customers are advised to redeem the old and buy the new, each investor can subscribe for the new fund at least twice a year, so that the subscription fee and redemption fee can be repeatedly taken away The management fee will not be less. The above public offering channels further said.

Shanghai, a large fund company sales director told reporters, from the marketing incentives, banks do have more incentive to do the first sale of new funds. However, it can not be ignored that the realization of such an approach by banks is also related to the investment habits of fund investors.

Many investors still have the inherent thinking of investing in the early years. They think that buying new funds is similar to building new ones. Once the net value of the funds held reaches a certain standard, they will take profits and re subscribe for new funds. The sales director said.

The reporter learned that some banking channels will set up profit stop lines, and the general expected yield levels are respectively: more than 10% for stock funds and more than 5% for bond funds.

In fact, as early as August 2013, the regulatory authorities revised and issued the regulations on the management of selling expenses of open-ended securities investment funds (hereinafter referred to as the Regulations), which included the redemption fees of partial shares and hybrid funds in the fund property according to different redemption periods. In addition, a certain proportion of punitive fees will be charged for funds with short holding periods Redemption fee.

That is to say, 1.5% of the redemption fee will be charged if the holding time is less than 7 days (including), and half of the redemption fee will be charged if the holding time is more than 7 days and less than 30 days, and so on. The longer the holding time is, the lower the redemption fee will be until the holding time is more than 2 years without redemption fee.

The main reason why this regulation was issued was that buying new and redeeming the old was relatively common at that time, in order to encourage investors to invest in long-term value and restrain such short-term speculation.

So in reality, buying new funds has a higher incentive. When channel personnel share the sales commission with customers, its difficult to stop the phenomenon of buying new and redeeming the old According to the aforesaid director of public offering sales.

However, the frequent short-term operation of redeeming the old and buying the new makes the fund managers position adjustment very tangled.

An investment researcher from a fund company in Beijing also said, in fact, this phenomenon, to a certain extent, forces us to consider following the hot spot when we allocate some stocks, because I dont want to leave a lot of cash to prevent this liquidity problem, which is a waste for product operation, so it is possible to take part of the funds out to consider short-term hot pursuit and short-term earnings At the same time, it can give priority to take out this part of funds to deal with redemption, but it may be said to be elegant, which is really difficult.

The trouble of interest mechanism

At the same time, the radical approach of commercial banks to the fund sales agency business has a hidden relationship with the macroeconomic trend.

Some bankers pointed out that in the context of macroeconomic downturn, many banks are accumulating more bad debts in the balance sheet, and the pressure of asset liability business is increasing, which also makes banks further grasp the life-saving straw represented by the sale of public funds.

Therefore, many small and medium-sized banks increase investment in intermediary business and assessment pressure.

Fund sale on a commission basis will not consume the banks capital occupation, will not bring pressure on the banks balance sheet, and is also an intermediary business encouraged by the bank, said a branch of a joint stock bank In recent years, the assessment of intermediary business by various outlets has gradually increased. Said the above sub branch.

On the other hand, the change of breaking the rigid payment brought by the new regulations of asset management to the banks financial management also makes the bank have more enthusiasm in the public offering sales. Before, bank financing itself was a part of the income of intermediary business. However, after the new regulations of asset management, the scale of these financing is constantly shrinking, and the financing subsidiaries (companies) have not fully grown up. A listed stock bank asset manager said frankly. Therefore, the banking industry is more active in selling public offering products on a commission basis.

On the one hand, the scale metabolism of the banks financial management makes the public offering and sale on behalf of others become the new support of the banks wealth management business. On the other hand, the bank is only acting as the sale on behalf of others. If the product suffers losses, in fact, there are also managers to bear certain credit responsibility. Said the said bank administrator.

From the reporters understanding of the situation, it is true that public institutions pay for the loss of channel structure customers.

For example, after the loss of an equity public offering fund product sold by a bank on a commission basis, the customer is claiming for rights protection, and the bank is transferring the relevant claims for rights protection to the manager. In order to settle the problem, the public offering institution finally resolved the customer lawsuit dispute by presenting gifts to the bank customers. It can be seen that the role of Party A played by the channel organization represented by the bank in the fund sales consultant is affecting the fund sales business. The above public offering channels pointed out.

In fact, there are also some third-party sales platforms that lead to the short-term behavior of fund market investment.

A public offering product person pointed out that some third-party sales platforms package fund portfolios in the name of fund investment advisers, and the positions of these fund portfolios also indirectly lead to the short-term investment of the fund, which brings difficulties to the fund managers in managing the products. Many third-party sales platforms play a role of fund investors earning more than their income in name, but in terms of profit distribution mechanism, they still charge commission fees, which determines that these third-party sales platforms cant really be consistent with the customer managers in terms of mechanism. After all, frequent portfolio adjustment will make sales agencies earn more money, but whether it can bring better returns to customers, save more transaction costs, and guide long-term investment in capital is another thing, said the above channel person Source: Yang Qian, editor in charge of Economic Observer_ NF4425

A public offering product person pointed out that some third-party sales platforms package fund portfolios in the name of fund investment advisers, and the positions of these fund portfolios also indirectly lead to the short-term investment of the fund, which brings difficulties to the fund managers in managing the products. Many third-party sales platforms play a role of fund investors earning more than their income in name, but in terms of profit distribution mechanism, they still charge commission fees, which determines that these third-party sales platforms cant really be consistent with the customer managers in terms of mechanism. After all, frequent portfolio adjustment will make sales agencies earn more money, but whether it can bring better returns to customers, save more transaction costs, and guide long-term investment in capital is another thing, said the above channel person