Since the beginning of this year, affected by the turbulent adjustment of the A-share market, the overall returns of public fund products have been poor, the issuance of new funds has continued to be cold, and the total size of funds has also declined compared with the beginning of the year.With the current weakening effect of making money, how can public funds improve their attractiveness?In the long run, how can public funds achieve higher-quality development?The reporter interviewed a number of industry experts.
Rich product supply
Wind data shows that as of May 20, stock funds, hybrid funds, QDII funds, and FOF funds have all fallen by more than 10% this year, with declines of 18.11%, 14.1%, 11.53%, and 10.11% respectively; the total size of public funds is 25.13 trillion yuan, down 320 billion yuan from the beginning of the year.
In terms of new fund issuance, as of May 20, the scale of newly established funds during the year was about 410.6 billion yuan, a drop of about two-thirds compared to the hot market of 1.28 trillion yuan in the same period last year.
Generally speaking, when the market is performing well, residents’ sentiment towards entering the market is high, and public funds, which are inclusive financial products, can often achieve rapid development. However, the current market earning effect is weakening. How to improve the attractiveness of public funds to investors? Boosting investors' confidence has become a top priority for the development of fund companies.
Wang Yifeng, chief analyst of the financial industry of Everbright Securities, said that due to the superposition of factors such as overseas inflation, Russian-Ukrainian conflicts and repeated domestic epidemics, the market's profit-making effect has weakened since this year, but public funds, as the main force of the institutionalization of wealth management business, can still rely on The increasingly sophisticated capital market is taking the lead in serving the real economy.In order to ensure the efficient and sustainable development of the industry, public fund companies should strengthen the construction of their own service systems and innovation mechanisms, and gradually improve the investment research system, product creation, value education and customer experience.
Industry insiders generally believe that at this stage, public funds need to improve their professional capabilities as soon as possible, strengthen product innovation, release more products suitable for the needs of different basic citizens, and increase their attractiveness to residents.
"When the market's profit-making effect declines, public funds need to focus on their main business, cultivate their 'internal strength', continue to improve their professional capabilities, and help investors manage their wealth well." Li Zhan, chief economist of China Merchants Fund Research, suggested that firstly, Dig deep into market structural opportunities, innovatively launch themed products, focus on and select stocks that outperform the broader market in themes such as "steady growth", growth rebound, high dividends, and low valuations to create value for investors; the second is to improve Investment and research capabilities, make great efforts in selected industries and individual stocks, and strive to improve investment yields; the third is to strengthen cooperation with long-term funds such as insurance funds, corporate annuities, pensions, etc., and prudently deploy opportunities at the bottom of the current market valuation; fourth. Actively promote investor education, strengthen publicity such as the fund's good medium and long-term investment returns, make good use of various channels to popularize financial knowledge and macroeconomic situation to investors, and help investors form reasonable income expectations and asset allocation decisions.
Regarding strengthening product supply, Wang Yifeng further pointed out that public fund companies should provide a wealth of suitable products according to customers' risk preferences, tap potential demand in old products, and deepen the expansion of product lines in new products to give investors more diversity choice.
grasp the policy direction
In recent years, the scale of the public fund industry has achieved rapid growth, the product structure has been continuously optimized, the standardization level has been steadily improved, and the wealth effect has gradually emerged.However, at the same time, there are still problems such as insufficient professional ability adaptation, weak cultural construction, and unbalanced structure in order to achieve high-quality development in the industry.
In this context, the regulatory authorities have recently released a number of relevant documents and policies, which have pointed out the direction and path for the further high-quality development of the public fund industry, and have also injected a boost to the current public fund market.
On April 26, the China Securities Regulatory Commission issued the "Opinions on Accelerating the Promotion of High-quality Development of the Public Fund Industry" (hereinafter referred to as the "Opinions"), which aims to actively cultivate professional asset management institutions, comprehensively strengthen professional capacity building, and strive to create a good development ecology for the industry. 16 specific measures were put forward to accelerate the high-quality development of the public fund industry.
On May 20, the China Securities Regulatory Commission issued the Measures for the Supervision and Administration of Managers of Publicly Offered Securities Investment Funds (hereinafter referred to as the “Administrator Measures”) and its supporting rules, striving to build a diversified and open industry, full competition, survival of the fittest, and orderly advance and retreat. ecology.
Deng Haiqing, chief economist of AVIC Fund, said that the "Administrator Measures" is an important regulation for implementing the high-quality development of the public fund industry. Towards a new stage, a new industry competition model and an era of innovation and development, centered on differentiated development with distinctive features, and a larger and stronger investment and research strength, have arrived.
Li Zhan believes that the "Administrator Measures" has made more detailed regulations on license management, corporate governance, risk control compliance, support for differentiated development, and improvement of market exit, which are generally concerned in the market, so as to further cultivate good public funds. The industry ecology has laid a foundation for improving the wealth management ability of serving residents.
Specifically, the "Administrator Measures" improve the supervision system of public fund managers from the whole chain of "access-internal control-operation-governance-exit-supervision", among which, in terms of license access and market exit systems.The "Administrator Measures" unify the conditions for asset management institutions to apply for public fund management qualifications, and at the same time moderately relax the restrictions on the number of public offering licenses held by the same entity, allowing securities asset management subsidiaries, insurance asset management companies, bank wealth management subsidiaries and other majors under the same group Asset management institutions apply for public offering licenses; add a special chapter to clarify the exit mechanism of public fund managers, allow fund management companies that fail to operate voluntarily to apply for cancellation of public fund management qualifications or realize market-oriented exit through mergers and acquisitions, and clarify the types of risk disposal measures and implementation procedures.
Li Zhan said that after moderately liberalizing licenses and optimizing the market exit mechanism, the overall market competition will intensify, but market players are expected to increase and decrease, which will be more conducive to creating an industry ecology with survival of the fittest and differentiated development.Fund companies should grasp the policy direction and improve their core competitiveness as soon as possible.
Wang Yifeng also believes that with the relaxation of restrictions on applying for public offering licenses, more asset management institutions will participate in the public offering fund industry, and competition in the public offering fund industry may intensify.At the same time, marketization is allowed to withdraw from the responsibility of compacting institutions, forcing high-quality enterprises to strengthen their own competitive advantages.
Based on long-term investment
It is worth noting that the "Administrator Measures" requires the board of directors to conduct long-term assessments of more than three years for the management. Fund management companies should take long-term investment performance, compliance and risk control as important basis for the assessment of key positions, and implement salary delivery. Delay, recourse, rebate and bonus co-investment system, short-term assessment and excessive incentives are strictly prohibited.
Industry insiders pointed out that establishing a long-term incentive and restraint mechanism and promoting the formation of long-term investment concepts have always been the focus of the regulators. For restricting "style drift" and "high turnover" and other behaviors to gain short-term trading income, solve the problems that plague the development of the industry. Funds make money, Christians don’t make money” problem has a positive effect, and it is also a necessary basis for promoting the long-term and healthy development of public funds.
Deng Haiqing said that in the current market, the abnormal values such as fund group grouping, short-term hot hype, ranking theory, "not opening for three years, and opening for three years" are all related to the short-sighted incentive and restraint mechanism.The establishment of a long-term incentive and restraint mechanism is conducive to avoiding unhealthy tendencies such as excessive pursuit of short-term rankings, amplifying market fluctuations, and short-term gimmicks in fund investment, and guiding fund companies and fund managers to focus on investment research. significance.
"This is a reflection of the regulators' continuous correction of the bad atmosphere in the industry and actively guiding the public fund industry to return to professional competence competition." Li Zhan said that most of the relative returns obtained from asset allocation are based on in-depth research on long-term economic development trends and industry development trends. However, excessive attention to short-term fluctuations in the equity market is not conducive to improving the ability of the capital market to serve the real economy, nor is it conducive to serving the medium and long-term financial management capabilities of residents.The establishment of a medium and long-term incentive and restraint mechanism can largely solve the chaos caused by the pursuit of short-term gains in the current market.
Wang Yifeng also pointed out that from the experience of overseas asset management companies, the long-term assessment mechanism is conducive to encouraging fund managers to focus on long-term performance returns, avoid frequent short-term transactions, and improve the long-term performance of funds.At the same time, with the continuous development and growth of institutional investors, the long-term incentive and restraint mechanism is conducive to guiding the long-termization of funds.Medium and long-term funds have the characteristics of pursuing value investment, relatively stable capital attributes, and growing together with enterprises. The institutionalization and long-termization of funds are an important development direction for stabilizing the capital market.
In addition, whether the long-term investment concept of investors can be further cultivated is also related to the implementation effect of the long-term incentive and restraint mechanism of the fund company.Deng Haiqing said that fund companies should further strengthen investor education and remind Christians that they need to study the investment capabilities and investment styles of funds and fund managers, select products that meet their own investment preferences and risk preferences, and make long-term investments.When the participants in the entire market have gradually formed the concept of long-term investment and value investment, the development of fund companies will also be more stable, thus making greater contributions to serving residents' wealth management.
