Alas, the pension fund, also lost a big piece!

Source: Caitong

Author: Wang Xin

At the noon close, I don't know how many people collapsed. Looking at this screenshot, I can only say that Big A is not contending, it is estimated that Sun Wukong will leave, and the golden hoop rod must be left.

The stock market is not good, and it is not only shareholders and basic citizens who "turn off the lights and eat noodles", but also a new group - the investors of the first batch of individual pension target funds who entered. With the support of policies, this group of people came in with the original intention of pension, but now they found that the pension fund in their hands has become a "life-killing" fund.

The worst decline is more than 10%, the pension target fund can not maintain and increase its value, so what is the reason for investors to buy? It has to be said that the stock market has fallen endlessly, which has brought a crisis of trust to the pension target fund. When buying personal pension products, investors should keep their eyes open.

Nearly 80% of the losses and many liquidations

Since the release of the individual pension policy in November 2022, the public fund has also launched a separate share category for the personal pension investment fund business - Y share, which only allows investors to invest through the personal pension fund account. So far, the earliest batch of individual pension Y shares have been running for almost 10 months, and new Y shares have been established one after another, how is the overall performance?

According to media statistics, in addition to the 133 products established last year, 23 pension target funds have added Y shares since the beginning of this year, and there are currently 156 individual pension fund Y share products.

Data show that as of September 15, among the 154 pension target fund Y share products with only data show, nearly eighty percent of the products have suffered losses of varying degrees so far this year, while only 21 products have returned positive since their inception. Among them, the highest performer, CEIBS, foresees the cumulative increase of 2025 one-year holding (FOF) Y since its establishment is less than 3%, and the cumulative loss of Huaxia Pension 2050 five-year Y at the bottom reaches 10.81%, and the difference between the two performance is close to 14 percentage points.

In addition, another pension target fund has recently been liquidated, this fund is a three-year holding period hybrid of China-Canada Enrui Balanced Pension Target.

According to the data, the fund was established on August 27, 2020, raised 100 million yuan at the beginning of its establishment, and as of August 27, 2023, the last operation date, the scale was still hovering around 10 million yuan, triggering the termination condition stipulated in the fund contract that the corresponding daily size was less than 200 million yuan after three years, and entered the liquidation procedure from the next day. Before liquidation, the cumulative net unit value of the fund was 0.9435 yuan, an increase of -5.65% since its inception and -8.55% in the past year.

Interestingly, as an initiation fund, China Canada Fund itself has also subscribed to 10 million copies of the fund, and according to the net value estimate, the fund company holds it for 3 years, and it may also have a loss of more than 5%.

Due to the mediocre performance, since the beginning of this year, pension target funds including Guolian Anxiang Stable Pension Target One-Year Hybrid (FOF) and Dacheng Xingxiang Balanced Pension Target Three-Year Hybrid (FOF) have been liquidated.

Why can pension money also be lost?

Speaking of which, the pension target fund began to be approved as early as 2018, and the fund established in the early stage also enjoyed a wave of dividends following the small bull market in 2019. For example, CEIBS Foresight Pension 2035 (FOF) A, established in October 2018, has a cumulative yield of 45.33%, which is still remarkable.

However, since the official implementation of the personal pension system, the holders of the Y share of the pension target fund have had bad luck, because the stock market has begun to fall again.

Speaking of this, many people think that personal pension products are low-risk products that maintain and increase value, and have nothing to do with the rise and fall of the stock market. But that's not the case!

To put it simply, there are 4 types of personal pension products, of which specific pension savings are mainly deposits, pension financial management is mainly fixed income assets, pension insurance can be invested in fixed income, equity and liquid assets, and pension target fund (FOF, fund of funds), more than 80% of investment in public funds. Obviously, their risk level is gradually increasing.

According to different investment strategies, pension target funds are divided into two categories: target date funds and target risk funds.

The target date fund can be easily identified from the name, and the general naming rule is "fund company name + pension + target date + minimum holding period", for example, "a certain pension 2040 three-year holding", which means that with 2040 as the target retirement year, the pension target fund must be held for at least three years after buying before selling.

These funds follow the principle of downward curve design, and in practice, the equity ratio tends to gradually decrease from 40-60% at inception to 0-15% on the target date and beyond. In other words, the target date fund helps you automatically match the risk tolerance of different ages, which is suitable for financial whites.

The target risk fund is also very easy to identify, the general naming rule is "fund company name + risk level + pension + minimum holding period", for example, "a fund stable pension one year holding", which means that the risk level is "prudent", and the minimum holding period is "one year".

The common risk levels of target risk fund products are conservative, steady, balanced, positive, etc., from conservative to positive, the equity ratio is generally increased from 10% to 70-75%, which means that the risk level is gradually increasing. This type of fund is more suitable for "old drivers" who understand their risk appetite.

Whether it is a target date fund or a target risk fund, they will always allocate some equity funds, including equity funds, hybrid funds, index funds, ETF funds, etc., which is closely related to the volatility of the stock market.

Taking Guotai Junan Shanwu Pension Target 2045 five-year holding as an example, the fund's latest fund holdings include a basket of hybrid and equity funds, which are medium and high-risk products. As stocks fall, the funds they hold fall with them, and ultimately their own performance is not satisfactory. What makes investors more uncomfortable is that the lock-up period after buying is 5 years, and the idea of short-term stop loss should not be thought of.

The main one is patience

At present, what should investors who rush to buy pension target funds do if they lose money?

Don't be in a hurry either. First, it can replenish positions through fixed investment and other methods to share costs; The second is to be optimistic about the future, have confidence in the long-term trend of the stock market and the pension target fund, and wait for the dawn.

Since the Politburo meeting in July proposed to "activate the capital market and boost investor confidence", a series of measures that exceeded expectations have continued to land, the "policy bottom" has emerged, and the economic data in August has recovered as a whole. More and more positive information has accumulated, accumulating energy for the stock market to build a bottom and rebound.

Moreover, the personal pension system, as the third pillar of the mainland pension, is in the ascendant, and the unprecedented importance of superimposed policies on the status of the stock market, the future personal pension will have a better institutional guarantee for making money in the market.

In the final analysis, since you have chosen to invest in pension target funds, you must have enough patience. This is a real investment run, and we must believe in the national fortune.