Floating rate fund restarts pilot trial at 6 Shanghai public offerings

Floating rate fund restarts pilot trial at 6 Shanghai public offerings

■ Our reporter Di Lingyue Shenzhen reported that the floating rate fund opened again.

  The first batch of floating-rate fund products were approved one after another in the afternoon of November 21.

Cathay Pacific Fund, Wells Fargo Fund, Huatai Barry Fund, Xingquan Fund, China Europe Fund and Huaan Fund became the first batch of pilot public offering funds.

  It is reported that the floating management fee fund ownership equity products approved this time, “the supervisory layer also guides the direction of active equity at the same time to ensure the interests of investors.

As performance changes, floating rates can give fund managers more incentive to manage products.

“A public fund insider told the China Times reporter.

  In fact, the floating rate fund is not a new product. The first domestic floating rate fund was issued in 2013, but since March 2016, due to various reasons, the approval of the floating rate fund has been suspended.

Today, floating rate funds are restarting.

  According to statistics from the China Times Times, after excluding currency funds and short-term financial management, the 17 floating rate funds that have been gradually established have generally performed well since 2019, with a maximum return of 39 during the year.

55% is the emerging mixture of Golden Eagle nations, with only 3 expected slightly.

  Six Shanghai public offerings were approved. On November 21, the CSRC issued an approval, and the floating rate fund will restart the pilot. Huatai Borui, Xingquan, CEIBS, Wells Fargo, Huaan, and Cathay 6 fund companies received the first batch of approvals.

  It is worth mentioning that this approval replaces Shanghai’s head fund company.

  A public fund insider told the China Times reporter that this is a positive cycle. Like this year’s science and technology theme fund, the first batch of pilot products of such innovative products as the Nikkei 225 Index are large companies.

  It is reported that the floating management fee fund ownership products approved this time are intended to adopt a performance-reward floating charging model. Among them, Huatai Borui has declared a one-year holding period, and Huaan, Wells Fargo and Cathay Pacific have reported two years.For the holding period, the holding period of CEIBS and Xingquan is three years.

After completing the preparatory work, the above 6 funds will soon enter the official issuance stage.

  In fact, floating rate funds are not a new product. As early as 2013, the fund industry set off a wave of floating rate funds.

The first domestic floating-rate fund was issued in 2013, and from 2013 to 2015, floating-rate funds began to be densely established.

However, since March 2016, due to factors such as the extreme market conditions in 2015 and the random appearance of random withdrawal of performance compensation, the approval of floating-rate funds has been suspended.

  Today, floating rate funds are back on track.

As its name implies, a floating management fee fund refers to a fund whose fund manager is sued for a direct link between management fees and performance. It can break the fixed management fee “drought intensification and income protection” model, and realize the bundle of interests of managers and investors.

  ”At the same time, the supervisors are leading in the direction of active equity to ensure the interests of investors.

As performance changes, floating rates can give fund managers more incentive to manage products.
“The insider of the aforementioned public offering fund added.

  ”Huaxia Times” reporter also learned that it is now difficult to obtain approval for a pure debt base. If a company already has the same type of product, it is unlikely that another similar fund will be approved, and the equity category is very favored.The process went smoothly.

  Uncertainty in management fee income, another insider of the public offering fund told the China Times reporter that regulators hope to use this behavior to convey that the fund industry has a profitable effect, and that fund managers who are in charge of floating rate products are not everyone who can do the job., Even the carefully selected elites of various companies, the company will give fund managers better incentives.

  The method of floating management fee rates has certain uncertainties for management fee income for fund companies.

Take Anxin Value Select Fund as an example, its prospectus stipulates that when redeeming the fund, if the annualized return rate is less than 7%, the floating management fee will not be recovered.

  In addition, in 2018, Southern Fund issued a fund that “does not make money and does not charge management fees”, which has attracted much market attention.

On August 6, 2018, Southern Fund began to issue innovative products. Southern Ruihe regularly opened a hybrid sponsored securities investment fund (LOF) for 3 years. This product was the first to use a conditional replacement of management fees.

If the closed-period income is positive, it can be 1.

5% / year fixed management fee; if the income during the closed period increases negative or zero, the management fee will not be accepted.

  The Oriental Red Industry Upgrade Fund has a cycle management fee of zero.

On September 6, 2019, the fund announced that the income conversion between September 6, 2018 and September 6, 201916.

84%. According to the management fee accrual standard agreed in the fund contract, the management fee rate applicable to the daily interval in this quarter was increased to 2.

5%.

In the first half of 2019, the management fee for the upgrade of Oriental Red Industry was zero.

  The contract of the Dongfanghong Industry Upgrade Fund stipulates that the fund contract shall be performed in the first year, in accordance with 1.

5% annual rate calculation; each quarter after one year of the fund contract expires, based on the fund’s rate of return for one year before that day (excluding the day).  Graded income fund management fee, that is, the level of floating management fee is determined according to the fund fluctuations during the performance evaluation period.

Basically, if the fund increases, the management fee will be higher; if the fund falls, the management fee of the fund will also decrease.

  It is reported that during the reform of the floating rate fund, the supervisory authorities sought opinions from all parties and formulated a more complete system. The fund company with outstanding performance has reported new floating rate fund products. Some professionals are expected to set off a round of variable floats.Rate fund boom.

  What is the performance of the floating rate fund that has been transitioning to a better overall performance during the year?

  According to Choice, after excluding currency funds and short-term financial management, as of November 22, 2019, there were 17 floating-rate funds (A and C were separately counted), of which 1 equity fund, 5 mixed funds, 11Only bond funds.

  Since 2019, as of November 22, 2019, the CSI 300 has increased by 27.

85%, the Golden Eagle National Emerging Hybrid increased its income by 39.杭州桑拿

55%, ranking first, Dongfang Red Industry upgrade followed closely behind, the unit net value increased by 37 during the year.

At 07%, the value of Anxin ranked third, with 29.

5%.

  Another 3 funds rose 10% -20% during the year, 8 products rose 0-10% during the year, and only 3 of the year’s return yields. These are the two-year net debts of the target income of the rich countries.The annual red bond C and Hua’an annual red bond A both fell less than 3%.

  Dong Dengxin, director of the Institute of Finance and Securities of Wuhan University of Science and Technology, told a reporter from China Times that the fund’s purchase and redemption rates should go with the market, and according to the fund company’s own strategy, the rate can be adjusted at the necessary time, thereby encouraging long-term citizens.Hold, purchase and reduce refunds. This is applicable to mature markets.

  ”Fund companies can implement a guiding role in implementing floating rates.

Many investors now use the fund as stock speculation, and the holding period is very short, which is not good for the people, and the fund must obtain long-term investment to obtain stable returns.

In mature foreign markets, the term of the fund held by the citizens is usually more than 3 years.

Dong Dengxin further explained.