Recently, the China Securities Regulatory Commission has researched and drafted the Interim Regulations on the Management of the Public Offering of Securities Investment Funds for Individual Pension Investments (Draft for Comment) (hereinafter referred to as the Interim Regulations), and publicly solicited opinions from the public.Among them, specific requirements are put forward on the products and investments of the public fund industry that can be included in personal pension investment, which will have a profound impact on promoting and regulating the development of the public offering business of personal pension investment.
First included in the pension target fund
In April this year, the General Office of the State Council issued the "Opinions on Promoting the Development of Individual Pensions" (hereinafter referred to as "Opinions"), which established the basic institutional framework of my country's third pillar pension insurance.The CSRC conscientiously implements the spirit of the "Opinions". In order to clarify the institutional arrangements for individual pension participants to invest in funds and to protect the legitimate rights and interests of investors, the CSRC has researched and drafted the "Interim Provisions" on the basis of sufficient research and made them public to the public. solicit opinions.
The China Securities Regulatory Commission pointed out that considering promoting the development of personal pensions is an important measure to improve the pension insurance system, which is directly related to the vital interests of the people. To meet higher requirements, ensure the safe and standardized operation of personal pensions, and strengthen the protection of investors' rights and interests.
GF Fund stated that the release of the "Interim Regulations", on the one hand, provides a clearer institutional arrangement for the public fund industry to serve the personal pension business, and provides a clearer operational path for the development of related businesses; Prudent development ideas, the "Interim Regulations" clearly stipulate the style, performance, scale, etc. of pension target funds that can be included in individual pensions, and propose sales agencies in terms of business indicators, corporate governance, compliance and internal control, etc. The clear requirements fully reflect the protection of the rights and interests of investors.
Specifically, the "Interim Regulations" proposes that according to the "Opinions", the implementation arrangement will be implemented step by step, and some cities will be selected for a trial period of one year and then gradually rolled out. In the trial stage of the personal pension system, it is planned to give priority to the scale of the end of the last four quarters. A pension target fund of not less than 50 million yuan.
The so-called pension target fund is a medium-low volatility fund product with equity assets. It aims to pursue the long-term stable appreciation of pension assets, encourages investors to hold for a long time, adopts mature asset allocation strategies, and reasonably controls investment portfolio fluctuations. Risks are mainly in the form of funds of funds (FOF) at this stage.
Harvest Fund believes that pension target funds and general public funds undertake the mission of serving the majority of holders from different perspectives.Compared with ordinary public offering products, which are mostly tools for short- and medium-term spare money management and wealth appreciation, pension target funds are a helper for residents to manage pension funds and enjoy a better life after retirement.Pension funds are mostly ultra-long-term investments and have the highest requirements for stability.It mostly adopts the form of FOF. On the one hand, it helps to smooth the fluctuation of the domestic capital market through flexible asset allocation. On the other hand, through professional fund selection, it can identify products with excellent and stable performance from nearly 10,000 public funds in the whole market. , enhance the long-term holding experience of investors, and realize the secondary dispersion of risks from the investment mechanism through investment funds, reduce volatility and improve the risk-return ratio without losing expected returns, which is very similar to the goal of pension funds. fit.
Regarding the first inclusion of pension target funds, China AMC believes that compared with insurance, savings and wealth management, risk protection and capital security are more prominent, while pension target funds are a good investment tool that focuses on equity assets and can give full play to the "long money" effect.The purpose of retirement financial planning is to reserve enough assets for retirement, which can last for decades.Therefore, if you only focus on the risk of investment fluctuations but the returns are insufficient, you will face the risk of insufficient asset accumulation after old age.From a long-term perspective, it is a more scientific way of financial management for the elderly to transform "savings for pension" into "investment for pension".
Gradually expand the product range
In recent years, my country's public funds started with pension target funds and actively participated in the construction of the third pillar of pensions, including pension target date funds and pension target risk funds.
Wind data shows that as of June 23, there were 180 pension target funds in the whole market, including 78 pension target date funds and 102 pension target risk funds, with a total scale of more than 100 billion yuan.
Taking China Asset Management as an example, since becoming the first domestic pension target fund manager in 2018, China Asset Management has continued to develop and comprehensively deploy two major product lines, pension target risk funds and pension target date funds that operate under the FOF model.At present, China AMC has established 11 pension target funds, 6 target date funds, and 5 target risk funds. It has built a complete product line of pension target funds, and is the fund manager with the largest number of pension target funds in China.
As the first fund company initiated and established by a state-owned commercial bank in China, ICBC Credit Suisse Fund has always regarded pension business as one of the company's long-term development strategies, and continued to increase investment to contribute professional strength to the construction of the third pillar of pension.At present, the company has 8 pension target funds, and the target retirement dates are from 2035, 2040, 2045, 2050, 2055 to 2060, which accurately meets the pension investment needs of the "post-70s" to "post-00s" mainstream groups. It is also one of the fund companies with the most complete types of pension target date FOF in the industry.
It is worth noting that the "Interim Regulations" also propose that after the personal pension system is fully rolled out, it is planned to gradually include stocks with stable investment styles, clear investment strategies, good long-term performance, and stable operation, which are suitable for long-term investment of personal pensions. Funds, hybrid funds, bond funds, funds within funds and other funds specified by the CSRC.
"Retirement investment is a long-term investment process. It is very important to clarify product positioning and select suitable risk-return preference products. It needs to be properly promoted through professional investment management and pension services." Quiet said.
China Universal Fund pointed out that this regulation will greatly expand the range of public offering products that individual pensions can invest in in the future, providing investors with more diverse choices.At the same time, it is also conducive to further introducing long-term funds into the capital market, optimizing the investor structure, and promoting the long-term stable development of the market.
Wells Fargo Fund said that the step-by-step approach is conducive to steadily promoting the development of individual pension investment funds, and the inclusion of more types of public funds after the full rollout in the future will help give full play to the advantages of funds.In the future, Wells Fargo Fund will accelerate the layout of pension target funds, enrich product lines, and provide more pension investment options for individual investors with different investment time and different risk preferences.At the same time, investor education and customer service companionship are also very important. We should effectively promote and implement pension financial education to help investors establish a scientific and rational concept of pension investment.
China Europe Fund said that although there is no quantitative definition for other fund products, it is expected that the corresponding standards will be continuously improved in the process of comprehensive promotion of the personal pension system.According to the "Interim Regulations", future pension products are required to meet the four characteristics of "stable investment style, clear investment strategy, good long-term performance, and stable operation compliance", which will also provide guidance for fund companies and help them actively prepare for compliance retirement products.
Fully benefit investors
According to the "Interim Provisions", if the existing fund products of public funds are to be included in the scope of personal pension products, it is necessary to set up separate shares and design special arrangements, preferential concessions, etc., to fully reflect the nature of "pension".For personal pensions, a separate category of fund shares shall be established for this business, sales service fees shall be charged, sales fees such as subscription fees shall be exempted, rate concessions shall be implemented for management fees and custody fees, and subscription restrictions shall be exempted.
In addition, the "Interim Regulations" also require public funds to set up special arrangements that match the business of individual pension investment funds, including institutional arrangements in investment to encourage long-term investment by investors, and special arrangements in terms of receiving (such as regular dividends). , regular payment, fixed redemption, etc.) to encourage investors to receive long-term behavior.
China Universal Fund stated that these regulations not only continue the concept of requiring high-quality development of the public fund industry, but also reflect the protection of investors' long-term interests, which is an important manifestation of the people's nature of my country's capital market.
"These regulations fully reflect the industry concept of making profits for investors." GF Fund believes that in the future, fund managers will also make special arrangements for investment strategies, income distribution, redemption mechanisms, etc. in accordance with the requirements of the regulations, so as to fully benefit investors , attract more people to accept and participate in the investment of individual pension funds.
In addition, the "Interim Regulations" emphasize the protection of the legitimate rights and interests of investors, and put forward higher requirements for participating institutions, such as requiring the establishment of a long-term assessment mechanism, the development of special systems and procedures, and the establishment of individual pension investment fund business areas.At the same time, the "Interim Regulations" focus on the protection of the legitimate rights and interests of investors, and make clear provisions on the reminder of initial investment, investor suitability management, pension investment and education, etc.
For example, the "Interim Regulations" require that fund managers and fund sales agencies should establish a long-term assessment mechanism, and the assessment cycle for individual pension investment fund business, product performance, and personnel performance should not be shorter than 5 years.Fund evaluation agencies shall adhere to the principle of long-term evaluation, the performance evaluation period shall not be shorter than 5 years, shall not use a single indicator for ranking or evaluation, and shall not conduct short-term income and scale rankings.
The CICC research report pointed out that the implementation of the long-term assessment mechanism for pension fund products is in line with the previous "Opinions" requirements for strengthening the long-term incentive and restraint mechanism.The 5-year cycle dimension required by the "Interim Regulations" is further extended compared to the inclusion of "long-term investment performance of more than 3 years" in the "Opinions", in order to more fairly evaluate the long-term management capabilities of fund products and managers, so as to select high-quality management People bring more stable and generous returns to individual pension investors.
It is worth mentioning that, according to the "Interim Regulations", the regulator will also implement directory management of individual pension funds and fund sales agencies, update them on the official website, fund industry platform, information platform, etc. at the end of each quarter, and will remove them from time to time. Compliant product or institution.The real-time and continuous supervision mechanism of this regulator for personal pension products will also play a role in escorting the pension investment needs of the majority of investors.
