By the end of the second quarter, 158 equity fund managers had managed more than 10 billion yuan.
A number of insiders from different fund companies said in an interview with 21st century economic reporter that the rapid expansion of fund scale not only tests the individual ability of fund managers, but also tests the comprehensive strength of fund companies.
The deeper question is, where is the management boundary of fund managers?
Crazy scale leap forward movement
According to choice data, as of July 22, 158 equity fund managers had managed a total fund asset size of more than 10 billion yuan, and were among the 10 billion level fund club..
Among them, the top 10 fund managers have managed more than 50 billion yuan, including Zhang Hongzhen of Huaxia Fund, Liu Gesong of Guangfa fund, Mao Wei of Nanfang fund, Zhao Zongting of Huaxia Fund, Xu Meng of Huaxia Fund, Hu Xinwei of huitianfu fund, Luo Wenjie of China Southern Fund, Xu Zhiyan of Huaxia fund, 52.5 billion yuan, 58.6 billion yuan, 58.6 billion yuan, 57.4 billion yuan, 57.4 billion yuan, 54.595 billion yuan, 54.595 billion yuan, respectively They are 600 million yuan, Zhang Kun of e fund is 52.3 billion yuan, AI Xiaojun of Cathay Pacific Fund is 50.3 billion yuan.
According to public data, at the end of the third quarter of 2019, the management scale of Liu Gesong was only 7.22 billion yuan, which exceeded 80 billion yuan in less than a year, increasing more than 10 times.
Coincidentally, the management scale of several fund managers has expanded in the past year.
For example, the fund scale managed by Zhang Kun in the same period of last year was 29.274 billion yuan, which increased by 22.977 billion yuan in one year; at the end of the third quarter of 2019, the fund scale managed by Mao Wei was 23.833 billion yuan, and the fund scale under management reached 59.613 billion yuan, an increase of 35.78 billion yuan.
According to statistics, 10 billion level fund managers are mainly concentrated in fund companies such as Huaxia, Nanfang, huitianfu, China Europe, Bank of communications Schroder, e-fund and other fund companies. Four of the top 10 fund managers come from Huaxia Fund Company.
From the statistical data, many of the 10 billion level fund managers are senior trumps of their fund companies. They have galloped in the capital market for more than 10 years, and many of them have made outstanding achievements.
Among them, Zhu Shaoxing of Wells Fargo fund is the fund manager who has been managing public funds for the longest time. Since 2005, he has managed Fuguo Tianhui, and his return rate has reached 1779%.
For example, Cai Songsong of noan Fund (19.762 billion yuan), Zhang Jun of Guotai Junan (14.501 billion yuan), Guo Fei of Schroeder of Bank of Communications (13.623 billion yuan), etc.
It is worth noting that among the 10 billion level fund managers, the phenomenon of one dragging more is also relatively obvious.
According to statistics, Zhang Hongchen of Huaxia Fund, AI Xiaojun of Cathay Pacific Fund, Mao Wei of China Southern Fund, Qiu Jie of Qianhai Kaiyuan and Cao Mingchang of China EU fund manage more than 10 fund products at the same time. Among them, AI Xiaojun manages 24 funds including Cathay Pacific China Securities all point communication equipment ETF link c, etc.
How did the ten billion level fund managers become?
First of all, the net subscription driven by medium and long-term performance has helped fund managers continuously expand their management scale to the level of 10 billion.
For example, Zhou Yingbo of China Europe Fund, Zhang Kun of e fund and CAI Songsong of noan fund have expanded the scale of funds managed by them, mainly relying on good performance to attract investors to purchase.
Insiders of a public fund company in South China pointed out that the mutual fund industry is very transparent and its performance is clear at a glance. Some outstanding fund managers have high market appeal and naturally attract a large number of fans to vote with their feet.
Take Cai Songsong as an example. Cai Songsong has been the fund manager for the first time since February 2019, managing the noan growth hybrid fund, the noan and Xin flexible allocation hybrid funds.
During Cai Songsongs management, the scale of noan Growth Fund increased from 1.3 billion yuan to 16.1 billion yuan, with a yield of 155.31% in the past year, higher than the average increase of 55.10% in the same category. His brilliant performance made Cai Songsong become the fund manager of ten billion level fund in just over a year.
Among the 10 billion level fund managers mentioned above, many fund managers have realized the leap in management scale by relying on the explosive funds issued in the first half of this year, such as Wang Zonghe of Penghua Fund, Hu Xinwei of huitianfu fund, Xie Zhiyu of Xingquan fund, Guo Fei of Schroder of BOCOM, etc.
Take Wang Zonghe as an example. On July 8, 2020, the Penghua ingenuity select mixed fund, which Wang Zonghe plans to be the fund manager, was officially issued, with a total raising scale of 29.691 billion, and the total number of subscription accounts reached 1.833 million, with the subscription confirmation ratio of 21.88%.
With the issuance of this new fund, Wang Zonghes management scale has exceeded 40 billion yuan.
A person from the investment department of a fund company in Shanghai pointed out: in fact, in the first half of the year, there were frequent fund explosion, not only because of the obvious profit-making effect of the market, but also because the operators of the new fund are star fund managers, who have outstanding performance records. For example, Wang Zonghe has managed Penghuas consumption optimization for nearly 10 years, with a return of 288.2% and an annualized rate of return of 15.28%.
It is worth mentioning that insiders of a public offering fund disclosed in a recent communication with reporters that there have been divergences within the fund company on whether to continue to issue new funds to increase the management scale of fund managers. The management hopes to expand the scale of fund through issuing new funds, while the fund manager says it is unbearable.
Third, the outbreak of customer demand. Insiders of a public fund company in South China believe that with the continuous innovation of the yield of risk-free products such as bank financial products, real estate investment income in first tier cities has begun to lag behind the capital market, and there is a lack of other investment channels, including individuals and institutions, which will increase the allocation of equity assets.
From the above analysis, performance driven is the most fundamental reason for the formation of 10 billion level fund managers, and the market price is the trigger factor.
Most of the fund managers whose active equity management scale can be stabilized at more than 10 billion yuan have rich investment and research experience, have good medium and long-term performance, pay attention to risk control, and have small net worth withdrawal, so they have strong appeal in institutional clients and retail investors. Shanghai a fund company product department personnel such as evaluation.
Where is the capability boundary?
Is the bigger the fund, the better?
Industry insiders said that for funds involved in active management, the larger the fund size is, the better. The management ability of fund managers is bounded, and it is difficult to obtain excess returns if the scale is too large.
A person from the product department of a fund company in Shanghai believes that large-scale funds may be subject to restrictions in asset allocation. For example, it is required to comply with the provisions that all funds of a single fund company shall not hold the same stock more than 10% of the market value of the stock. He pointed out: if the style of the fund manager is partial to growth, and the ability circle is concentrated in small and medium-sized market value stocks, it may be impossible to screen There are enough subjects with sufficient confidence.
Secondly, if the scale is too large, it is more difficult for fund managers to adjust their positions.
Insiders of a public fund company in South China said that when the market fluctuates violently and the style changes quickly, the large-scale fund is not as flexible as the fund with moderate size.
However, the scale of funds under active management should not be too small. Fund managers of a fund company in Shanghai pointed out that small-scale funds are flexible in adjusting positions, but if the scale is too small, investors concentration is too high, and large redemption may affect fund investment.
For example, if the size of the large cap fund can only be covered by the size and size of the small cap fund manager, it may be more limited by the size of the Small Cap Fund and the size of the fund.
This product is jointly managed by 14 fund managers.
How to manage ten billion level funds not only tests the management ability of a fund manager, but also tests the comprehensive strength of a fund company.
In fact, since the first half of this year, Zhang Kun, Chen Hao, Xiao Nan of e fund DA and Liu Gesong of GF have employed more fund managers or assistant fund managers in their products.
In addition, the fund manager of a fund company in Shanghai pointed out that if the fund scale is too large and the product investment strategy is difficult to accommodate, it will also control the scale by restricting large amount of subscription.
Insiders of a public fund company in South China said that the management of a 10 billion level fund needs the systematic support of the investment and research team. Only when the companys comprehensive strength is improved can it provide support in terms of intelligence, resources and talents for the management of large-scale funds. Otherwise, the scale of 10 billion level funds will not be sustainable.
Many people in the industry have reminded us that we should pay attention to the strange circle of good performance in the past caused market attention, and then the scale of funds managed by fund managers soared, but the performance decreased due to too large scale.
For example, Zhou Yingbo, a China Europe Fund, once said frankly in the first report of China Europe era pioneer in 2020: the scale of funds managed in the first quarter continued to rise, but on the one hand, the market experienced a large fluctuation; on the other hand, our experience and ability to prevent withdrawal in scale were insufficient, resulting in short-term losses for investors who bought at higher positions in the market.
It is reported that China Europe era pioneer fell by 5.22% in the first quarter of 2020, falling short of the benchmark.
Strategic analysts of a fund company in Shanghai stressed that fund companies should put the interests of the holders first. On the one hand, they should fully combine the style of fund managers, capability boundaries and product strategies to keep the funds in a reasonable scale. On the other hand, they need to pay attention to risk control in investment and strive to reduce the withdrawal.
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