Recently, Cai Songsong, a well-known fund manager of Lion Fund, took over a "mini fund" with a size of only 2.0111 million yuan.
At present, there are many "mini funds" on the market. Data shows that there are more than 1,600 funds with a scale of less than 50 million yuan.In addition to adjusting fund managers, fund companies also deal with "mini funds" by means of transformation and liquidation.Public fundraisers remind investors that although some "mini funds" have good short-term performance, they should pay attention to the large fluctuation of net value and the risk of liquidation.
Adjustment of fund managers
Lion Fund recently announced that due to work adjustment, Cai Songsong served as the fund manager of Novan's optimized allocation, and Wu Bojun, the former fund manager, still served as the fund manager of Novan Progressive Return Fund and Novan Lixin Fund.
According to the first quarterly report of 2022, Lion’s optimized allocation of fund shares at the end of the first quarter was 1,438,200 shares, and the net asset value of the fund was 2,011,100 yuan, making it an uncompromising “mini fund”.As a well-known fund manager of Lion Fund, Cai Songsong currently manages about 28.4 billion yuan in total assets.
In response to Cai Songsong taking over the "mini fund", some analysts said: "The top fund managers took over the 'mini fund', probably mainly to increase the size of the fund. In the industry, many fund managers have made the 'mini fund' bigger. case.”
There are indeed many examples of achieving "counter-attack".For example, Cui Chenlong of Qianhai Open Source Fund took over the Qianhai Open Source Utilities Fund on July 20, 2020. The scale of the fund at the end of the second quarter of that year was only 13 million yuan, and the scale at the end of 2020 increased to 484 million yuan.By the end of 2021, the size of the fund will increase to 25.816 billion yuan.In addition, the scale of GF Multi-Factor Fund at the end of 2019 was 138 million yuan, and at the end of 2020 it slightly decreased to 124 million yuan.By the end of 2021, the size of the fund has soared to 23.33 billion yuan. An important "variable" is that on July 2, 2021, Yang Dong will be the fund manager of the fund and jointly manage the fund with Tang Xiaobin.
"Shell protection" tricks appear frequently
Data show that as of July 4, there were 1,603 funds on the market with a scale of less than 50 million yuan, of which 337 funds were even less than 10 million yuan.
"Many 'mini funds' will not be liquidated immediately because of their 'shell' value. When there is a need for funds, 'shell funds' can be used immediately, which saves a lot of time and effort compared to applying for new funds." There are fund companies A person from the institutional business department told a reporter from China Securities Journal.
"Change of coaches" is just a way for "mini funds" to come back to life, and there are other "shell protection" tactics in the public fund industry.Among them, fund transformation is also a common method for fund companies to "protect the shell", and some funds have achieved double growth in scale and performance after the transformation.In recent years, there are also fund companies trying to use the method of fund consolidation to solve the problem that the size of a single fund is too small.
However, some fund companies are more inclined to choose the liquidation method to deal with their "mini funds", such as some funds whose investment themes have not been on the market for a long time.Fund liquidation has accelerated in recent years.According to statistics, as of July 5, 95 funds have been liquidated this year.In 2021 and 2020, 254 funds and 173 funds were liquidated, respectively.
Investing in "mini funds" requires caution
Although facing the pressure of "protection" or liquidation, some "mini funds" performed better.Among the funds with the highest yields this year, many are smaller.
As for the reasons for the better performance of "mini funds", some public fundraisers pointed out that small-scale funds are more flexible in investing in small-cap stocks, and there is no need to worry about the inflow and outflow of large amounts of funds affecting positions, and there is no need to consider too much liquidity in the process of individual stock adjustment. Product management can better reflect investment ideas.At the same time, small-scale funds can better enjoy the "new" bonus.
The above-mentioned analysts also said that some smaller funds may hold relatively concentrated positions, and while achieving higher returns, their net worth fluctuates greatly.In addition, "mini funds" may have the risk of being too small to lead to product liquidation. Investors are advised to choose carefully when investing in such funds.
