Supervisory window guides floating rate funds to restart pilot low-key issuance

Supervisory window guides floating rate funds to restart pilot low-key issuance
After more than three years, the floating management fee fund re-launched.  In fact, the floating rate fund is not a new product. The first domestic floating rate fund was issued in 2013, but since March 2016, due to various reasons, the approval of the floating rate fund has been suspended.  On November 21, the floating management fee funds declared by six fund companies, Cathay Pacific, Wells Fargo, Huatai Borui, Xingquan, CEIBS and Huaan, were approved.On the 28th, of the six floating rate funds approved this time, Cathay Research selected two holding periods for mixing, Huatai Borui’s boom returned one holding period for mixing, and Hua’an Huizhi selected two holding periods.Mixed, the three-year holding period of China-Europe sailing is mixed, and five funds of the two-year holding period of Wells Fargo Alpha are issued at the same time, and only the three-year holding value of Xingquan Society is approved for release.  In addition to the above companies, integration companies such as Anxin Fund, Hongde Fund, Southern Fund, Pengyang Fund have also reported similar products, and it is expected that approval will be obtained soon.  ”The pilot companies are well-known.”However, since the supervision before the release reminds everyone to keep a low profile, this time everyone is deeply engaged in selling quietly.”A person from a pilot fund company told the New Economy e-line.”Because it is still in the fundraising period, the release situation is still relatively uncertain, but the company does not expect the product to be very hot.In addition to window guidance, the current downturn in the market environment is also an important reason.It is worth noting that the closed operation has become mainstream. The long-term pilot funds have set a lower limit of USD 200 million and a ceiling of USD 3 billion.During the fundraising process, the fundraising scale will reach 3 billion and the fundraising will end.On any day (including the first day) of the total funds raised, the subscription application amount exceeds US $ 3 billion after the date of termination of the fundraising, and the fund manager will implement the effective control of the scale by means of confirmation on the last day.  The New Economy e-line noticed that the six floating management fee funds that will be re-launched on a trial basis will replace closed-end funds with slightly different holding periods.Specifically, the first batch of five funds to be issued in a closed period has a one-year, two-year, and three-year period. Among them, Huatai Borui’s booming one-year holding period is the only one-year closed period product.It is initially expected that closed operations in the future may become the mainstream of floating management fee funds.  In terms of product operation, a rolling holding model is used. Each trading day during the opening period is similar to the purchase. Each subscription share needs to be locked. The redemption can be redeemed on any trading day after the closing period, gradually diminishing short-term market fluctuations.Impact, to avoid the human weakness of “chasing up and killing down”, and strive to obtain long-term benefits.  In addition to the closed period, the most interesting thing is that the performance compensation of the fund manager is completely linked to the investor’s profit. There will be no loss of investors, and the fund company will still generate performance compensation.At present, the performance-reward products have set a reasonable biological performance-reward gate.According to the announcement of the announcement of fund shares, the provisions of “20% performance compensation for each fund unit annualized income exceeding 8%” are set. If the annualized return of the fund does not exceed 8%, only 0 per year will be required.The fixed management fee of 8% substantially exceeds the average annual average of ordinary active equity funds.5% management fee.  A research report by China Everbright Securities believes that the floating management fee fund has broken through the traditional fixed management fee “drought intensification and income protection” model, linking the managers ‘and investors’ incomes to form a certain constraint mechanism.  The Constitution and Supervision issued the “Floating Management Fee Index for Publicly Raised Securities Investment Funds (Preliminary Draft)” on June 6, 2017. The fees of this type of fund are carefully regulated and the floating management fee fund is divided into the following twoThe first category is the “fulcrum” floating management fee fund: how the fund manager ‘s actual remuneration (management fee) is directly linked to the fund ‘s performance; 武汉夜生活网 the second is the “performance compensation” floating management fee fund: fixed management feeOn the basis of this, when the fund’s performance exceeds a preset benchmark, additional management fees will be added in accordance with a certain percentage of the excess income.  Unlike the previous fulcrum floating model, the “new high law” performance compensation model is different. Under the new model, the performance compensation of fund managers is completely linked to the profit of investors, and only when the fund earns money can it reap the performance compensation.  The profit-making effect is fundamentally from China Merchants Securities investor Yang Yuzhang. From the perspective of overseas markets, some mutual funds have also adopted a form of performance-based remuneration rates to promote fund managers’ efforts to pursue higher absolute returns in the investment process and increase fund holdingsSomeone’s holding experience.  However, the unreasonable design of rate incentives may also cause the fund managers to deform their investment actions, pursue short-term returns or rankings, and make short-term investment decisions on them, which will adversely affect the long-term development of fund products.  Fundamentally speaking, the design of the rate should be combined with the actual positioning of the product, while increasing the incentive for the absolute return of the fund, and reasonably guiding the long-term performance of the product, so as to better realize the original intention of the rate policy reform.  It can be seen that for investors, the ability of the fund manager is the most important factor in choosing a fund for investors. If the implementation of floating rates can motivate fund managers to obtain better investment returns, investors will naturallyGood news.  Looking back, the initial exploration of floating management fees in the public offering market was in 2002.The fund prospectus on August 30, 2002 shows that the fund manager promised that if the net value of the fund unit is lower than the value growth line, the fund will suspend the management fee.However, since the establishment of Boshi value growth, the overall rate of return can only be considered as a general level.Especially after 2008, it is more convenient.  The New Economy e-line learned that from the return on net worth since the beginning of this year, the returns of various types of floating rate funds have not particularly advanced, and there is no statistical difference between them and fixed rate funds.If we only look at the product type, there is currently no data to prove that floating rate funds can create better returns for investors.  Wind data shows that of the 32 floating-rate funds with performance statistics, a total of 11 funds have had negative returns on their relative performance comparison benchmarks since the establishment of November 21, that is, underperforming performance benchmarks, accounting for nearly1/3, including Jiutai Ruifu event-driven, Xinhua steady returns, Yinhua big data, etc.Even if some funds outperformed their benchmarks, they did not perform well in similar funds.  In general, there has been an endless stream of innovations in public fund products since this year. Fund companies with “floating management rates + certain holding periods” have attracted investors by reforming their rates, while setting certain holding periods to reduce emotional interference, but innovative productsHow the money-making effect remains to be tested.

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