This year, the number of fund transformation may exceed 180, breaking through 100 for three consecutive years

category:Finance
 This year, the number of fund transformation may exceed 180, breaking through 100 for three consecutive years


From the perspective of the number of transition funds over the years, from 2015 to 2019, the number of transformation funds is 52, 45, 63, 171 and 164 respectively. According to regulatory requirements, the time limit for the rectification of graded funds and short-term financing funds remains unchanged. The transformation should be completed by the end of 2020. At present, there are still 84 classified funds and 11 short-term financing funds that have not yet been completed. This year, the number of funds to be transformed may exceed 180.

Many of the above products are transformation under the requirements of the new regulations on asset management. A person from the middle-sized public offering market department in Shanghai said that funds that do not meet the regulatory requirements and do not adapt to the market will gain new life through transformation, which is good for the holders and the fund companies.

In the view of Zhongrong fund, transformation plays a key role in fund metabolism. Public fund products should meet the requirements of the foundation people. Investors need to obtain effective investment and financing tools to achieve stable investment growth. Active transformation of funds is an important way to realize this demand.

Yang Han believes that metabolism is essentially the elimination of products that do not conform to the new regulations on asset management and do not meet the needs of the future capital market. It is inevitable that some fund products established in the past are not suitable for future development needs. For these products, positive transformation is the most efficient way.

There are four trends in the transformation

From the perspective of transformation direction, there are four main types: first, hierarchical funds are transformed into lof products; second, short-term financial management is transformed into short-term bonds or interest rate bonds; third, some regular open-end funds are changed into open-end funds, such as Changsheng Shengjie one-year period is changed to Changsheng Shengjie fund, and Zhongou Hongtao is transformed into China Europe Hongtao; finally, the unpopular products turn into popular theme bases For example, the stable growth of CAITONG was changed to CAITONG convertible bonds, and the multi factor quantitative strategy of huitianfu was transformed into huitianfu CSI 300 index enhancement.

In addition, some of the transformation is to meet the demands of investors, such as the recent transformation of monetary funds into bond funds, bond funds into convertible bond funds, and so on.

Fund transformation involves the experience of stock holders. Fund companies will change their products from the perspective of fund type similarity, product risk characteristics and market hot spots, so as to bring better experience for holders.

Yang Han said that after the fund transformation, it is equivalent to a new product for investors, and it is necessary to reconsider whether the product type and risk return characteristics are still suitable for holding. At the same time, although the transformation may not be very friendly for the original holders, after all, the risk level, investment scope and investment mode of the fund have changed, but for the products that are about to disappear, the transformation can help investors make a smooth transition, which is a more responsible scheme. In the context of regulatory policy requirements and market changes, fund transformation is becoming a new way out for non-compliance inventory and lack of market adaptability products. After the conversion of some funds, the scale of funds has increased by dozens or even hundreds of times, and the effect of transformation has become increasingly prominent. Source: Ren Hui, editor in charge of Securities Times_ NBJ9607

Yang Han said that after the fund transformation, it is equivalent to a new product for investors, and it is necessary to reconsider whether the product type and risk return characteristics are still suitable for holding. At the same time, although the transformation may not be very friendly for the original holders, after all, the risk level, investment scope and investment mode of the fund have changed, but for the products that are about to disappear, the transformation can help investors make a smooth transition, which is a more responsible scheme.

In the context of regulatory policy requirements and market changes, fund transformation is becoming a new way out for non-compliance inventory and lack of market adaptability products. After the conversion of some funds, the scale of funds has increased by dozens or even hundreds of times, and the effect of transformation has become increasingly prominent.