The Same Hot Spot And Different Stories: The Share Of Newly Issued Fof Increased By 185% Year On Year, Huatai Baoxing Lost Its First Electric Shock

The stories of public funds pursuing hot spots are not always the same perfect ending.

On September 10, Huatai Baoxing steadily allocated the three-month holding period of hybrid funds (fof) announced that the fund contract failed to take effect because it failed to meet the filing conditions stipulated in the fund contract.

This is the first fof to fail to raise this year.

After four years of development, the public offering fof has ushered in an obvious warming up since this year.

According to wind data, 57 fofs have been launched since September 15 this year, and the distribution share of 41 completed fofs has reached 63.5 billion, an increase of 185% compared with 43 fofs and 22.3 billion shares in the same period of last year.

"Fof has attracted much attention this year. On the one hand, under the market shock this year, fof's income and stability have performed well, attracting part of the audience; on the other hand, some banking channels have paid more attention to fof products. If someone pushes it, someone will buy it. In the past, the channel will not focus on it." fof fund manager of a public fund in Beijing told 21st century economic report.

The scale of public raised fof exceeds 170 billion

According to the data, by the end of the first half of this year, the scale of public raised fof reached 171.957 billion, which continued to increase by 65% compared with the scale of 104.073 billion at the end of 2020.

At the end of the first half of this year, there were 9 fofs with a scale of more than 5 billion, which were affiliated to Bank of communications Schroeder fund, Guangfa fund, Xingzheng Global Fund, Minsheng Jiayin fund, etc.

Among them, there are three fofs with a scale of more than 5 billion under the Minsheng plus bank fund. They are the largest fund company, namely, Minsheng plus bank Kangning stable pension for one year, Minsheng plus bank excellent allocation for six months, and Minsheng plus bank stable allocation for six months.

The largest fof is the Bank of communications enjoying a stable pension for one year. The scale of this fund at the end of the first half of this year was 15.287 billion yuan, which continued to increase by nearly 4 billion yuan compared with the scale of 11.349 billion yuan at the end of 2020.

This is also the only public offering fof with 10 billion yuan.

According to the data, the Bank of communications was established on May 30, 2019 for one year, with the return of 18.25% and annualized income of 7.57% as of September 13 since its establishment.

In addition to the old funds, new fof also has a significant breakthrough in scale.

As of September 15, 57 fof products have been released this year, of which 41 have been closed, with a total issuance share of 63.5 billion, up 185% year-on-year.

Since September alone, as of September 15, 11 fofs have been launched. At present, the most intensive month is in July, in which 18 fofs are launched.

Xingzheng global preferred balance three months holding is the largest fof issued this year, with a scale of 7.915 billion. Just on July 12, Xingxing securities global preferred balanced holding and issuing for three months, with the scale of raising more than 18.5 billion on the first day, and launching the proportional placement, the fund is also the largest initial fof so far.

The issuance shares of the three funds are 6.176 billion, 6.065 billion and 5.083 billion respectively.

It is worth noting that among the fund companies that have newly issued fof products this year, there are also many companies that have set up fof for the first time.

According to the 21st century economic report, the fund companies that first set up fof include CITIC Prudential fund, Galaxy fund, Huashang fund, Hengyue fund and Huatai Baoxing fund.

In March this year, CITIC Prudential fund established its first fof, CITIC Prudential pension in 2035; In May this year, the first fof was set up by the Chinese business fund, namely, Jiayue, a Chinese businessman; Subsequently, in July this year, Galaxy fund and Hengyue fund respectively established their first fof, namely, Yinhe Yinian stable pension goal one year holding and fof Hengyue Huiyou selection for three months.

"With reference to foreign data, after more than 20 years of development, the scale of fof in the United States accounts for 10% to 15% of the total size of public funds in the United States. Compared with domestic data, the scale of public offering in the United States has reached 24 trillion yuan. If we calculate the future development based on the 10% share, the domestic public fof market will be very huge. Therefore, many companies are actively planning and developing fof products "Su Xin, director of asset allocation Department of Minsheng Bank of Canada, pointed out in an interview.

Losers on hot track

It is worth mentioning that although fof has witnessed great development this year, not all the fund companies involved have got a share.

The first layout of fof Huatai Baoxing fund is very embarrassing.

After three months of fund raising, Huatai Baoxing steadily allocated the fund in the three-month holding period hybrid fund (fof) on September 10, saying that the fund contract failed to come into effect because it failed to meet the filing conditions stipulated in the fund contract.

This fof will be raised from June 9, 2021 to September 8, 2021, with a time span of three months.

As a matter of fact, Huatai Baoxing fund has changed the issuing schedule of this fof product several times. On February 19, 2020, Huatai Baoxing steady allocation held for three months, which was registered and raised with the approval of CSRC. However, the fund was not issued within the time limit of 6 months after the approval document of general public offering fund was obtained.

Until December 10, 2020, Huatai Baoxing fund obtained the reply of the CSRC on the filing of fund (fof) extension in Huatai Baoxing's three-month holding period hybrid fund, and the fund was allowed to postpone its offering.

At the end of the six-month period, on June 5, Huatai Baoxing steady allocation held for three months and issued an announcement on the sale of fund shares, announcing that it would be publicly offered through sales agencies from June 9.

Huatai Baoxing stable allocation of three months held by the proposed fund manager is Liu Jianfeng. According to the data, Liu Jianfeng has been a researcher of Donghai Securities Research Institute, a researcher of macro allocation department, quantitative investment department and equity investment department of Huatai Asset Management Co., Ltd., and investment manager of securities investment division and innovation investment department. He joined Huatai Baoxing fund in July 2018. Huatai Baoxing's steady allocation for three months is also its first fund manager.

New fund managers and new fund companies may be the factors that cause the failure of Huatai Baoxing's stable allocation for three months.

In fact, in the past two years, the Matthew effect in the public fund industry has intensified, and the head fund companies have gathered a lot of resources, and the survival of small and medium-sized fund companies is more difficult.

A chairman of a small public fund told the reporter of the 21st century economic report that "the restrictions on the scale of fund companies by some channels directly exclude some small fund companies, and the marketing promotion of small fund companies is more difficult."

Data show that the latest management scale of Huatai Baoxing fund is about 26.7 billion yuan, of which the scale of bond fund is about 13.8 billion yuan, accounting for about 52%. Compared with the absolute advantages of fixed income products, the scale of equity funds under Huatai Baoxing fund is not large.

In fact, Huatai Baoxing's three-month steady allocation is not the first fund that failed to issue this year.

In April this year, Huatai Baoxing fund also had Huatai baoxing'an Xinchun bond and Huatai Baoxing Zunyu three-month fixed opening bond, declaring that the fund contract could not come into effect.

The reporter of 21st century economic report found that another public fund, CITIC Prudential fund, is also experiencing twists and turns in the layout of fof products with Huatai Baoxing fund.

CITIC Prudential fund is also the first fof in this year, and its first product, CITIC Prudential pension, was established in 2035 after the extension of the raising period.

The fund began to be raised on February 22 this year, and the original deadline for subscription was March 5. On March 4, CITIC Prudential Fund issued an announcement on extending the raising period of CITIC Prudential pension in 2035, extending the fund's raising period to March 12.

On March 16, the fund was announced to be established with 67 million shares issued.

The fund manager of CITIC Prudential pension in 2035 is Li Zhengzheng. According to the data, Li Zhengzheng served as the chief staff member of the National Council of social security fund; He worked in China Pacific Life Insurance Co., Ltd. as the senior manager of account management. He joined CITIC Prudential Fund Management Co., Ltd. in June 2019.

In 2035, CITIC Prudential pension was also the first fund managed by Li Zhengzheng as a public fund manager.

Fof development speed up

"Fof products have a certain historical performance in the past few years. The return is good and the withdrawal is small. Compared with the stock fund, it shows the advantage of high cost performance. There are also some investors who pursue low withdrawal and have similar returns. In the past, they may focus more on products like" fixed income + ". However, in the future, more and more attention will be paid to fof, and the scale will continue to go up." Said the fund manager of the said mutual fund.

From the perspective of institutional trends, the layout is also speeding up.

Just this week, seven more public pension fofs were launched. They are Huaxia anying holding fof in one year, Xingzheng global Anyue holding fof in one year, Jiashi Ankang holding fof in one year, TEDA Manulife pension goal holding fof in 2025, huitianfu Tianfu Huiying holding fof in one year, Huashang Jiayi holding fof in 2040 and southern Fuyu one-year fof.

All the other six products were released on September 13, except for the one-year fof of Southern Fuyu.

"The upcoming implementation of preferential policies such as tax deferral may be the reason for the acceleration of institutional layout, and the recent pilot project of pension financial products launched by the China Banking and Insurance Regulatory Commission is also an important wind vane." the fof fund manager of a public fund of a bank believes that.

It is worth noting that this year, the organization also launched an innovative product fof-lof.

According to the CSRC website, since August, 11 fund companies have reported a total of 17 related products. On August 5, GF fund, Xingzheng Global Fund, BOCOM Schroeder fund, China Europe Fund and Minsheng Jiayin fund took the lead in reporting fof-lof. Subsequently, many fund managers, such as Wells Fargo fund, Huaxia Fund and Cathay Pacific Fund, also declared relevant products.

"At present, fof in the market has a holding period, and some products will have a longer holding period, so many people think that the liquidity of fof is not very good. The introduction of fof-lof actually solves the liquidity problem of fof, which has a huge prospect," said the fund manager of fof.

In its view, fof is a product that can help investors solve the three major pain points of asset allocation, timing and base selection, and has a bright future.

"In recent years, the stock market is a bull market. In terms of yield, the absolute return level of fof can't compare with that of equity funds, so the sales of fof are also more laborious compared with equity products. After long-term experience of bull and bear, fof products can play their inherent characteristics, small withdrawal and high sex price ratio, and become an investment variety suitable for ordinary people to participate in." Wu Zhigang, the fund manager of Yinhua Huazhi fof, told the 21st century economic reporter.