Fund actively prepares for floating management rate products
Source: China Fund News Breakthrough Management Fee Drought Increases Income and Guarantees to Bring Benefits to Managers and Investors “” China Fund News Reporter Fang Li Lu Huijing “Breakthrough Management Fees Drought to Break Income and Benefits to Bring Benefits to Managers and Investors”Every move of the rate fund has received great attention from the industry.
Some preliminary sources have announced that the official guidelines for floating management fee funds will be released soon, and large-scale fund companies are already preparing related products, only to be officially “opened.”
Actively preparing for floating management fee funds It is understood that the “contingent management fee”
model adopted by Huatai Zijin Fengtai Debt Base accompanied by Huatai Securities Financial Management has caused concern.
According to the China Fund News reporter, the industry has recently reported that long-term fund companies report such products.
”A Shanghai-based fund company recently reported a flexible configuration fund that uses a floating management fee model, with fixed holdings terminated, and arranged for a fund manager with the highest performance in the past two years, but the product has not yet been replaced.
“Introduced by a fund company product department.
Another fund company product designer said that too many fund companies have reported floating management fee funds.
“Reports can be made casually, but will not be cancelled until guidance is provided.
It is reported that the floating management fee fund guidelines will be issued soon. ”
The draft of the guidelines for floating management fee funds issued by the Air Force regulators is divided into two categories according to different charging methods: the first is the “fulcrum” floating management fee fund.
The remuneration (management fee) actually paid by the fund manager is directly linked to the fund’s performance.
When the fund performance is higher than the comparison benchmark, the management fee will float upwards, otherwise it will float downwards.
The second is to extract “performance compensation” floating management fee funds.
On the basis of receiving a fixed management fee, the fund manager will replace the additional management fee with a certain percentage of the excess income when the performance of the fund exceeds a preset benchmark.
Many fund companies said that, relatively speaking, the “fulcrum” charging model is more suitable for fixed income products, and the “performance compensation” type is more suitable for equity funds.
The reporter learned that the relevant products initially formulated are basically equity products with a certain holding period.
A representative of the product department of a large fund company said that floating-rate funds encourage fund managers to bundle their interests with investors, and in particular, will receive better results in a non-bull market environment, which can prevent investors from thinking that the manager’s drought has led to guaranteed income.
A fund company source said that fund rates are linked to performance, and companies with strong active management capabilities continue to actively report floating management fee funds.
A fund company product designer believes that floating management fee funds involve management fee commissions. This model is easier to implement for fund companies that promote the division system or natural person holdings.
”Fund companies need fixed management fee income. The concept of” no money and no management fees “is more effective in guiding long-term investment. You can try to increase the holding period of investors and gradually reduce management fees.
“A fund manager said.
The performance of existing floating management fee funds varies widely. As early as 2013, China’s first floating fee fund has been produced.
Compared with traditional fixed-rate funds, the combination of floating-rate funds has obvious advantages.
Some people expect that after the introduction of the new regulations, a new generation of floating rate funds will bring new changes and surprises to the industry.
Wind data shows that as of August 9, there are currently 37 floating management fee funds on the market, including 10 stock long and short funds, 12 flexible allocation of mixed funds, 7 medium and long-term pure debt funds; stock and partial equity mixed fundsEach has one — — Anxin Value Select and Jiutai Ruifu Event-Driven Fund; 杭州桑拿 in addition, there are some currency funds, short-term bond funds, and hybrid bond funds.
From the perspective of performance, from 2014 to 2018, the medium- and long-term pure bond funds that used floating rates had an average yield of 11 in five years.
85%, only outperformed the entire market medium- and long-term pure bond funds in 2017 and 2018.
Among the flexible allocation of hybrid funds, floating rate funds also outperformed the average of flexible allocation of hybrid funds in 2015 and 2017.
Although the overall performance is not outstanding, in terms of single funds, floating rate funds have many outstanding products.
As of August 9th, Dongfang Hongruiyuan will be opened for three years. CEIBS Select and Dongfanghong Industrial Upgrade have accumulated 78 earnings in the past three years.
37%, ranking among the top funds of the same kind.
Initial sources said that floating management fee funds were an attempt in the past.In the future, new rules will be implemented. The development of floating-rate funds will still require certain basic market performance and the ability of fund managers.The interests are bundled together. As the capital market becomes more mature, the advantages of such products will gradually come into play.
”Floating-rate funds have their limitations. There have been some controversies, and they are not the mainstream fund product model abroad.
“Said Liu Yiqian, head of the Shanghai Securities Fund Evaluation and Research Center.
First, the purpose of setting floating fee rates for active funds is to enhance the incentives of fund managers, while public fund managers need to evaluate performance and management scale. The incentive mechanism itself exists, and whether further incentives are still worth exploring. Second, inNote that under the floating rate mechanism of the performance compensation model, it is easy to trigger excessive risk-taking behavior of fund managers.
After all, if you do poorly, you will not charge management fees, and do a good job to reverse the higher management fees. Third, domestic and overseas research proves that the main source of fund income is market system performance, that is, beta income, which can be compensated when the market growsHigher costs are not justified.