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How To Overcome Matthew Effect In "Private To Public" Funds? Exclusive Explanation Of Public Offering Chairman

2021/9/10 14:38:00 0

Fund

"Private to public" was once a popular topic in the fund industry.

At present, there are five "private to public" public offering fund companies in the market, including Pengyang fund, Kaishi fund, Bodao fund, Hongyi distant fund and Zhuque fund.

Several companies were established between 2016 and 2018 and have been developing for four or five years.

These four or five years are also the most typical years for the development of "Matthew effect" of public funds.

This year, another private fund manager, Beijing youruizhi Investment Management Co., Ltd., applied for the establishment of public funds.

In view of the current industry development problems, the 21st century economic reporter has done systematic research; Including the chairman of Kaishi fund, a number of respondents also responded to this.

Taking Kaishi fund as an example, it is the first "private to public" fund company held by all natural persons in the industry. Kaishi fund has six natural person shareholders, the majority shareholder Chen Jiwu holds 65%, and the second largest shareholder Li Chen holds 23.63%.

Chen Jiwu previously served as deputy general manager of Wells Fargo fund, and established Shanghai Kaishi Yizheng Asset Management Co., Ltd. in 2009. In 2015, keystone applied for a public offering license, which was subsequently approved in March 2017.

At that time, Chen Jiwu said in an interview with the media that "private to public" in the short term meant that private equity business would lose part of its scale. However, although it would sacrifice some immediate interests, it could pursue greater development space. It pointed out that the spring of public funds has just arrived. Although the competition in this industry is becoming increasingly fierce, companies that have solved the problem of mechanism will show their vitality in the long run.

Historical burden

When communicating with the 21st century economic reporter, some of the interviewees frankly said that four years after the "private to public" transformation, some public offering institutions are facing many difficulties.

On August 31, kaishiqi short-term bond fund issued a suggestive announcement that the net asset value of the fund was lower than 50 million yuan continuously for 40 consecutive working days as of August 30. If the net asset value of the fund was less than 50 million yuan for 60 consecutive working days, the fund would be wound up.

As a matter of fact, this is not the first liquidation warning of Kai Shek fund's products this year.

Many funds, such as kaishifeng mixed fund, kaishizhan mixed fund, kaishichun industry selection and so on, have issued suggestive announcements that the net asset value of the fund is continuously lower than 50 million yuan.

At the same time, four funds have been cleared in the period from November 2020 to June this year.

At present, Kaishi fund has only four funds, including three mixed partial equity funds and one bond fund. By the end of the second quarter of this year, the asset management scale of Kaishi fund was 1.031 billion yuan, ranking 140th among 147 public fund managers in the whole market.

"It's normal for public funds to clean up their own products. Every year, many products are wound up in the industry. After we evaluate some products, we find that their contracts are not suitable for the current market, and it is difficult to continue to operate, so we cleaned them up." Chen Jiwu told the 21st century economic news.

This statement is consistent with the current development of the public fund industry.

According to the data of the first half of 2021 previously calculated by the 21st Century Capital Research Institute, 116 public funds have entered into liquidation, far higher than 46 in the same period of last year, with a year-on-year increase of 152%. In addition to Kaishi fund, there are also large fund companies.

In July 2018, the first public offering product of Kaishi fund, kaishichun industry selected mixed fund, was established. The first product must have placed a lot of expectations of the new fund company.

In less than three years, the fund has gone into liquidation. In April, the Fund released its liquidation report. The first product has been wound up, and Kaishi fund is facing a lot of pressure. As a matter of fact, as early as June 2019, the liquidation crisis of kaishichun industry selection has appeared, and it is less than a year since its establishment. At that time, kaishichun industry selection announcement said that as of June 6, 2019, the fund had been 40 consecutive working days, and the net asset value of the fund was less than 50 million yuan.

Since then, the scale of the fund has been increased and decreased repeatedly until March 2021, when it finally triggers the liquidation. According to the reporter data of 21st century economic report, in the whole year of 2020, kaishichun industry selection released 9 announcements that the net asset value of the fund was lower than 50 million yuan. Since this year, kaishifeng mixed fund and kaishizhan mixed fund have repeatedly issued the announcement that the net asset value of the fund has been continuously lower than 50 million yuan.

In fact, the frequent change of scale is directly related to the effect of making money.

Taking kaishichun industry selection as an example, the return of the fund after 2.66 years of establishment is 15.84%, with an annualized rate of 5.68%, and the management performance of the two fund managers has not exceeded the benchmark. In recent years, the market environment of doubling fund appears frequently, which is "out of place".

"The performance fluctuation of public funds is very normal. As a newly established company, Kaishi has not done channel business all the time, and always insists on active management. However, several of its products are customized products of institutions. This will happen if the main investors withdraw their funds immediately and the channel does not give us any further marketing." Chen Jiwu told the 21st century economic reporter.

Some people in the industry believe that a special phenomenon this year is that more and more fund companies have taken the initiative in winding up, which is related to the expectation of relevant fund companies to shake off the "historical burden".

Facing the historical burden, it is obvious that many institutions need to integrate new resources and build advantages. This road is not easy.

the matthew effect

In the study of historical data, the evidence of fund "shell" is still an unavoidable topic.

The 21st century economic report reporter investigation found that in order to achieve the shell protection of its funds, Kaishi fund has been operating continuously on the liquidation warning line for many times, and the capital has been rapidly in and out, and it has withdrawn after the liquidation time point.

For example, kaishizhan mixed fund this year for two consecutive shell. According to the reporter's investigation, as of March 22, 2021, the net asset value of the fund has been less than 50 million yuan for 55 consecutive working days. However, at the end of the first quarter, its scale rose to 52.0155 million yuan, realizing the shell protection.

On June 2, kaishizhan mixed fund announced again that as of June 1, 2021, the net asset value of the fund has been less than 50 million yuan for 40 consecutive working days; A few days later, it was announced that as of June 23, 2021, the fund had a net asset value of less than 50 million yuan for 55 consecutive working days.

According to the time point, that is, from April 2, the net asset value of the kaishizhan mixed fund has been less than 50 million yuan. However, the realization of the hedging scale of Kaishi fund occurred from March 23 to March 29 at the latest, and then to April 2, the fund of this scale had been withdrawn.

"In the past, there may have been some who were worried about gains and losses, and they would protect the shell, but the final choice is not appropriate. If it should be cleared, we will operate it well if it can be operated well." Chen Jiwu said, "we have no need and no reason to protect the shell in order to protect the shell. At present, we do not have this problem."

"Shell protection" has always been an unavoidable problem in the industry.

According to the feedback from many interviewees, from the perspective of industry practice, existing funds have lowered their rates in the hope of "retaining institutional customers"; There are also ways to improve the "follow-up Commission" as a channel; There are also those who seek "help funds" to enter for protection.

Since the first half of 2021, these means have been abandoned by the collective.

The reason why they are abandoned is also related to the fact that institutions pay more attention to the development of new funds, and that "shell" funds are increasingly difficult to keep.

On the other side of the story, "there are a lot of channels for private public funds, to some extent, there are some barriers. Small fund companies are indeed under great operating pressure." Chen Jiwu frankly said, "there is a paradox in the fund industry now. The larger the company is, the more resources the channel gives, the easier access is. But small fund companies are limited by the threshold of channel access."

According to the investigation of 21st century economic report, the scale of kaishifeng mixed fund has frequently broken through the threshold of 50 million yuan, which can be seen from the operation and maintenance cost of fund managers.

"Now that fund issuance is convenient, fund companies have less incentive to invest resources in mini funds, and liquidation can avoid waste of company resources," said a large public fund source in Beijing.

Another data reflecting the current situation of the channel end is that in 2020, when public funds are competing for success, 10 billion scale explosive funds will appear frequently, while new products of Kaishi fund will fail to be issued when they are cold raised. In the same period of rotation with kaishihong industry, there are many fund products issued in the end of 2019 to the beginning of 2020. For example, e fund research selected, the fund was issued on February 19 of that year, and the fund was raised on that day. The combined issuance shares of the fund reached 16.589 billion.

"If private placement is transferred to public offering, it depends on the original accumulation of the company, and more importantly, the material accumulation. Whether there are enough resources to support the debt management of public offering funds in recent years, and the thinking needs to be correct before it can probably come out." an analyst of public offering fund of a securities firm pointed out, "Private placement is market-oriented. In the past, only institutions with some skills can survive."

Team adjustment

"The ecological environment of the industry is changing. In the past two years, the performance of the fund industry has fluctuated greatly, and some funds have also experienced performance fluctuations this year. However, there are many small fund companies that have not performed well in the past, but they have performed very well this year. Therefore, one of the biggest characteristics of the whole business environment and market environment is change. We also strive to survive and develop in the process of change "Chen Jiwu told the 21st century economic reporter.

Talking about the follow-up strategic planning, Chen Jiwu said, "In the past, we didn't pay much attention to fixed income business, so we will increase our efforts in the next step. In addition, we will adjust the investment research team. We should go deep into the research of the industrial chain as we do PE, and build the whole investment on the industrial ecology, so that the investment can be precise and the return will be improved. In fact, our private equity investment focuses on semiconductor, photoresist, new energy materials and so on It's very accurate. It can be said that none of the projects invested so far has any problems, and it can be said that 90% of the projects have a return of 10 times or 20 times. "

"In fact, we are now vigorously adjusting, including personnel adjustment and strategic layout adjustment," Chen said.

From the current point of view, this period of time Kai stone fund funds also have some fund manager changes.

In March 2020, Liu Jinjin, the fund manager, resigned. Liu Jinjin was once the fund manager selected by the industry as the first public offering product of Kaishi fund. Since the establishment of the fund in 2018 and his departure from office, Liu Jinjin's performance has not exceeded the benchmark. The fund was wound up in March this year.

It is worth mentioning that Liu Jinjin is still the proposed fund manager of kaishihong industry rotation, but this fund has not been successfully issued.

Prior to that, Liu Jinjin was the head of the investment department of Kaishi fund. He was a trader of Qingdao International Trust, a researcher of aerospace securities, a trader of China Shipping fund trading department, deputy general manager of trading department, general manager of trading department, general manager and investment director of Asset Management Department II.

This year, Liang Futao, the fund manager, left for personal reasons. Liang Futao once managed the selection of kaishihan industry, kaishilan leading economy and kaishifeng mixed fund.

The kaishilan leading economic development center managed by the company is the only fund with a scale of more than 200 million yuan at present. At the end of the first half of this year, the scale of the fund was 796 million yuan. According to wind data, the total return of the fund managed by Liang Futao in two years and three months was 78.19%, with an annualized return of 28.96%, ranking the bottom 30% in the same category.

After liang Futao's resignation, Fu Bairui took over as the manager of kaishilan leading economy fixed development fund.

Since March 4, it has generated 15.01% return, rising to the top 20% in the same category.

"The performance of equity has improved, coupled with the distribution of fixed income, our development meeting this year will go to a new level," Chen said.

In fact, Kaishi fund is also highly concerned about the establishment of the Beijing stock exchange and actively participates in investing in the listed enterprises of the Beijing stock exchange. According to the 21st century economic report, Kaishi fund has set up relevant new products.

 

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