I. Revenue Performance of Cash Management Products of State-Owned Banks (as of January 3)
As of January 3, the products of 7 banks in the cash management product income list of state-owned banks have entered the top 10 list, namely Guangfa Bank, China Minsheng Bank, Industrial Bank, China Merchants Bank, Ping An Bank, China CITIC Bank and Bank of China. Among them, Guangfa Bank, China Merchants Bank and Ping An Bank each listed 2 products, and the rest were each listed with 1 product.
It is worth noting that some of the gold products found by state-owned banks and joint-stock banks are old products that do not comply with the new asset management regulations, and these products have basically expired at the end of 2021. In addition, some old products have been transformed and continued to be sold.
For example, the latest seven-day annualized yield of Industrial Bank 'Cash Treasure No. 1' of 3.030% ranked third in the list. According to the product's 2021 third quarter report, its value date is October 20, 2010, the maturity date is December 29, 2021, and the product type is yield type.
As of September 30, 2021, the scale of "Cash Treasure No. 1" products was 2.8628 billion, bond investment accounted for 58.20%, interbank certificates of deposit accounted for 21%, and cash accounted for 20.80%. The top ten positions were not disclosed in the third quarterly report.
The Nancai Wealth Management Research Group noted that the product in the Industrial Bank App is still on sale and did not expire on December 29 last year. Relevant people from IB Wealth Management said that the product is still on sale, has been transformed into a new product and postponed, and handed over from the parent bank to the wealth management sub-management.
Sample Analysis: Guangfa Bank "Happiness Gilded Every Day"
As of January 3, 2022, Guangfa Bank's "Happiness Gilded Daily Enjoyment" has a seven-day annualized yield of 3%, ranking fourth in this list. The product was established on May 27, 2021, with a risk rating of PR2 and a performance benchmark of the 7-day notice deposit rate announced by Chinese Min Bank. The starting amount of each subscription is 10,000, and the part exceeding the starting amount is increased by an integer multiple of 100 yuan.
In terms of product fees, the product does not charge subscription fees, subscription fees and redemption fees, and the sales fee rate and fixed management fee are both 0.3%/year, and the custody fee is charged at 0.03%/year.
It is worth mentioning that on December 29, 2021, Guangfa Bank issued an announcement that Guangfa Bank revised part of the product sales document in accordance with the latest regulatory regulations and business development needs. The amendments include the clarification of the product type as "cash management" and the stipulation that "there is no early redemption of the product, and investors do not have the right to redeem in advance". A description of "Investment Objectives and Investment Strategies" and a supplementary description of "Risk Assessment of Markets and Assets to be Invested" have also been added. The modification of the product specification also includes the taxes and fees involved in the product, the deferred payment of the product, the product issuance management institution and investors. The amendments to the relevant documents are effective as of December 31, 2021.
According to the third quarter report of "Happiness Gilded Daily Enjoy" in 2021, as of September 30, 2021, the net asset value of the product at the end of the period was 4.636 billion yuan, the income per 10,000 shares was 0.7294 yuan, and the seven-day annualized yield was 2.43%.
From the perspective of asset portfolio, the direct investment of the product accounted for 100%, of which 93.49% invested in bonds, 5.44% invested in asset-backed securities, and bank deposits and settlement reserves accounted for 1.07% of the total.
From the perspective of the top ten positions, the first type of bond with the highest total position ratio is urban investment bonds, and the total position ratio of 4 urban investment bonds "19 zhang investment 01", "20 first open MTN002", "21 Haicheng D3" and "18 Shanghai real estate PPN003" is 12.16%, of which "19 zhang investment 01", "21 Haicheng D3" and "18 Shanghai real estate PPN003" are private urban investment bonds with slightly worse liquidity than public offerings. It was followed by large certificates of deposit from five banks, which together accounted for 10.7% of the portfolio's net assets.
(Figure: "Happiness Gilded Daily Enjoyment" Top Ten Investment Assets at the End of the Third Quarter of 2021, Source: The Product Third Quarterly Report)
Under the influence of the "new cash regulations", the yield of cash management products has generally declined, and the situation that some banks have invested heavily in private bonds, secondary capital bonds, perpetual bonds or long-term treasury bonds has gone, and stabilizing credit and reducing duration have become the main investment ideas during the transition period of the new regulations.
Guangfa Bank said in the third quarter operation report of the product that the product investment strategy mainly includes the portfolio duration strategy, credit spread strategy, riding, rolling configuration, etc. In the third quarter, due to the impact of the valuation method of private debt costs guided by the regulatory window, coupled with the increase in inflation expectations in September, the impact of real estate bonds, the bond market turned into an adjustment, and the yield rebounded from the low level, the overall portfolio net value was retraced, and the deviation was lower. In September's adjustment, the portfolio is mainly based on defensive strategies, appropriate leverage strategies, and obtain coupon returns under the expectation that the funding rate center is relatively stable. At the same time, the portfolio actively reduces the duration and concentration indicators in strict accordance with the new regulations on cash management products.
Second, [Nancai Wealth Management] The performance of the seven-day annualized yield of the monetary fund
In order to deeply analyze the bank's cash management wealth management products, the research group selected monetary funds for comparison. As of January 4, the seven-day annualized yield of the money fund's listed products was higher than 3%, and "Green Currency B" ranked first with a seven-day annualized yield of 5.573%.
"Green Currency B" has fluctuated and fluctuated in its seven-day annualized yield in the past six months, and the product recorded a minimum seven-day annualized yield of 1.29% on October 7, and climbed to 5.76% 8 days later, the highest peak in nearly a year. The product's seven-day annualized yield has hovered around 2.5% in the past 2 months, and has risen again to 5.57% in the past week.
(Figure: "Greene Currency B" has been annualized for the past 6 months and seven days)
"Green Money B" was established on July 20, 2017, and as of September 30, 2021, the latest fund size is 910.4 million yuan. In order to cope with the downward trend in short-term asset yields since the third quarter, the fund manager has increased the allocation of high-rated credit bonds, while ensuring the safety of assets, actively explore market trading opportunities, and bring diversified sources of income to the portfolio through investment means such as allocation transactions.
The Research Group of Nancai Wealth Management selected 5 new products that are currently being sold for reference. According to the data of Nancai Wealth Management, recently, the "ABC Tongxin Linglong" Value Selection No. 20 (New Year's Enjoyment)" launched by ABC Wealth Management is worthy of attention. The performance benchmark of the product is 5.8%, the investment nature is mixed, the operation mode is closed-end net worth type, the minimum purchase amount is 1 yuan, the risk level is R3 (medium risk), and the investment cycle is 1091 days.
In terms of investment strategy, the product adopts a stable asset allocation strategy, and carries out the strategic and tactical allocation of fixed income varieties and equity varieties through a top-down approach, and improves the level of income on the basis of pursuing stable returns.
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