Why Is The Absolute Income Base The Cause Of Fund Liquidation In The "Disaster Area"?

Double that!

This year, there have been 101 liquidation funds (A / B / C categories are calculated separately, the same below). Last year, the number was 33.

According to the data of the 21st Century Capital Research Institute, among them, 48 are bond funds and 33 are hybrid funds.

The fixed income fund has become a serious disaster area to clean up.

Even the "fixed income plus", which has been highly praised by institutions in recent years, has also been affected. Since this year, 15 "fixed income plus" funds have been wound up.

The background is that both the stock market and the bond market have experienced significant fluctuations this year. On the one hand, institutions push the "fixed income +" fund, while the "fixed income +" fund liquidation accelerates.

What happened?

"In this year's liquidation of the fund, due to its small scale, most of the cases triggered the termination clauses of the contract, and some of them were approved by the general meeting of shareholders. But on the whole, the performance of the liquidation fund is generally average and its scale is small. " Good buy fund research center researcher Yan Xiong said.

A surge in liquidation funds

In fact, this year, the number of liquidation funds doubled year on year.

According to wind data statistics, as of April 21, the number of liquidation funds has reached 101 (A / B / C category is calculated separately, the same below), 68 more than 33 in the same period last year, with a year-on-year increase of 206%.

Among them, bond funds account for 47.52% of the total, accounting for 48, which is the product type with the largest number of liquidation among various types of funds. In addition, the second type of liquidation is the mixed fund, with 33, 18 shares and 2 QDII.

It is worth noting that 15 "fixed income plus" companies have been wound up, belonging to 7 fund companies.

Specifically, the "fixed income +" funds in liquidation are: Huatai bairuifenghui a, Huatai bairuifenghui C, CIC UBS annual profit, CCB stable Tianli a, CCB stable Tianli C, Jingshun Great Wall Jingyi Manulife a, Jingshun Great Wall Jingyi Hongli C, Nanfang Rong'an open a, Nanfang ronganding period open C, Jingshun Great Wall jingruili, Zhonghai Tianshun, Nanfang Zengzhi China Europe Daan one year, CCB Ruifu Tianli a, CCB Ruifu Tianli C.

Including three typical representatives of "fixed income +", including 8 partial debt mixed fund, 5 secondary debt base and 2 primary debt base.

Among them, the fund companies with more "fixed income +" funds that have been wound up this year include: 4 CCB funds (secondary debt base: CCB's stable profit a / C share; Partial bond hybrid fund: CCB Ruifu Tianli A / C shares); 3 Jingshun Great Wall Fund (secondary bond base: Jingshun Great Wall Jingyi Manulife A / C share; Partial debt hybrid fund: Jingshun Great Wall jingruiruili); There are 3 main funds in South China (mixed fund of partial debt: A / C share opened in Rong'an period of southern China and Zhenzhi in southern China); 2 Huatai Bairui funds (primary bond base: Huatai Bairui Fenghui A / C shares). In addition, UBS, China shipping and China Europe each have one.

On the one hand, the number of liquidation funds has increased greatly; on the other hand, the scale of public funds has increased greatly in recent years. According to the data disclosed by China Securities Investment Fund Industry Association, by the end of December 2020, the total asset management scale of China's public funds was 19.89 trillion yuan, an increase of 34.70% compared with the end of 2019, a record high.

By the end of February 2021, the management scale of public funds has reached 21.78 trillion yuan, an increase of 9.50% over the end of last year.

And the scale of "fixed income plus" funds increased by leaps and bounds last year. According to the data, in 2020, the number of "fixed income plus" strategic funds in the whole market will exceed 100, with a total scale of more than 300 billion yuan.

Wind data shows that since this year, as of April 21, there have been more than 200 newly established funds of "fixed income plus", with a total scale of more than 200 billion yuan.

All kinds of signs show that the competition in the fund industry is intensifying, and people in the industry believe that the competition of "fixed income plus" has also changed from blue ocean to red sea. Liquidation is just a reflection of this kind of market competition.

The loss of performance and scale

Since this year, there have been many "fixed income +" fund liquidation.

On April 20, Huatai Bairui announced that Huatai Bairui Fenghui fund would be liquidated on April 21, 2021.

The announcement said, "according to the motion and scheme statement passed by the general meeting of fund unitholders, the fund will enter the liquidation period on April 21, 2021. The fund manager will no longer accept the share redemption and transfer out applications from the holders, and the subscription and transfer in of the fund will not be resumed."

Huatai Bairui Fenghui fund belongs to the first class bond fund, which is a type of "fixed income +" fund.

According to wind data, Huatai bairuifenghui a was established on December 11, 2014, with a revenue of - 2.53% in the latest year, 23.73% since its establishment and 3.40% in annualized income. Since the beginning of this year, Huatai Bairui Fenghui A's revenue has been - 1.18%, while the benchmark for the same period is 1.31%. Huatai Bairui Fenghui a has failed the benchmark. Overall, the fund's performance was lower than that of bank financial products in the same period.

As a matter of fact, Huatai Bairui Fenghui a lost the comprehensive bond of China Securities for a long time. According to the data, from 2015 to 2021, the annual income of Huatai Bairui Fenghui a was lower than that of China Securities composite bond. For example, since 2021, the income of Huatai Bairui Fenghui A is - 1.18%, and that of China Securities composite bond is 1.40%.

In terms of scale, as of December 31, 2020, the scale of Huatai bairuifenghui A is 66 million yuan. Huatai Bairui Fenghui C is RMB 01 million, which means that the scale of the two funds is RMB 67 million.

In the first quarter of this year, Huatai Bairui Fenghui continued to decline. By the end of the first quarter of 2021, the scale of Huatai bairuifenghui A is 3.92 million yuan, and that of Huatai bairuifenghui C is 780000 yuan. The different shares of the two funds add up to a total of 4.7 million yuan. Huatai Bairui Fenghui has become a mini fund, far below the threshold "red line" of 50 million yuan fund.

Yan Xiong, a researcher at Haomai fund research center, said that the liquidation of fixed income funds and partial equity funds exists. Among them, the situation that the fund scale is relatively low and triggers the termination clause of the contract is the majority. There are still some cases that are approved by the general meeting of shareholders. However, on the whole, the performance of the liquidation fund is generally average and the scale is small.

In fact, on the whole, since this year, the performance of "fixed income +" funds is not very ideal, and many of them have become "fixed income -". Take 15 "fixed income +" funds that have been wound up since this year as an example:

There are two primary bond funds: Huatai bairuifenghui a-1.18%, Huatai bairuifenghui c-1.34%.

Five secondary bond funds: UBS of SDIC made a profit of 0.27%, CCB steadily increased profit by a2.24%, CCB steadily increased profit by c1.99%, Jingshun Great Wall Jingyi Manulife a-5.05%, Jingshun Great Wall Jingyi Manulife c-5.11%.

Partial bond hybrid funds: c-1.79% for China Southern Securities Co., Ltd., 1.67% for a-1.67% for South China, 0.56% for Jingshun Great Wall, 0.05% for China shipping, 1.48% for Southern Zhenzhi, 3.36% for China Europe Daan, 0.61% for CCB Ruifu Tianli, and 0.71% for CCB Ruifu Tianli.

However, as for the performance of "fixed income +", industry insiders believe that since this year, "fixed income +" has changed a lot, and its income may be lower than that of fixed income products, but it is expected to be better than many equity funds. In the long run, for example, in terms of investment in three or five years, "fixed income +" may still outperform fixed income products in terms of performance.

As for the liquidation of funds this year, Yan Xiong, a researcher at the Haomai fund research center, points out that the fund products to be wound up include both large companies and small companies. It does not necessarily have a direct and decisive relationship with the fund companies. It is more related to the performance of the fund products and has a greater impact on the scale.

Performance "+" fog

Especially after the year of the ox, the A-share market continued to fluctuate, and the performance of public funds encountered challenges. Many "fixed income +" funds retreated more obviously, which is the biggest reason affecting the performance.

Industry insiders believe that in the environment of stock market adjustment and bond market strengthening this year, the pressure of debt base liquidation in the future will tend to ease, and the number of equity funds may gradually increase in the future.

Most of the "fixed income +" products are absolute return strategies. After the withdrawal and reduction of positions in March this year, they are also expected to achieve positive returns in the future.

From the perspective of scale, of the 15 "fixed income +" funds that were wound up this year, except that the scale of China Europe Daan one-year fund reached 761 million, the rest were basically Mini funds, below the red line of 50 million.

However, the one-year liquidation of China Europe Daan may be related to the unsatisfactory performance. Its income last year was 8.23%, and before the liquidation on March 16 this year was - 3.36%, which did not reach the average performance of similar funds.

Some fund sources said that their company has wound up small mini funds this year, which will cause losses to fund companies. After liquidation, it will also help fund managers spare energy to better manage other products.

Another fund source believes that in the future, "mini fund" liquidation and delisting will become the norm. At present, there are more and more new funds, and the homogenization is serious. In addition, the unsatisfactory investment performance will also lead to the "miniaturization" of funds and the retention of some people.

In addition, some fund insiders pointed out that some bond funds belong to the outsourcing products of institutional customization, which will lead to the rapid reduction of the scale when the institutions no longer renew their contracts, which is also a reason for the liquidation.