The year-end wealth management company's "fee reduction + self-purchase" is favored by Libo investors

Our reporter Qin Yufang reports from Guangzhou

Towards the end of the year, more and more banks and wealth management companies have joined the ranks of preferential rates and even "self-purchase" of wealth management, and enhanced investors' enthusiasm for subscribing to wealth management products through fee reduction promotions and subscription of their products with their own funds.

Industry insiders pointed out that since the beginning of the year, bank wealth management has been in a period of adjustment, net value fluctuations, poor income performance, so that investors are less and less willing to allocate wealth management products;

"Fee reduction" + "self-purchase" boosts investor confidence

Since December, wealth management companies have intensified their promotion of fee reductions for bank wealth management products.

On December 15, Ping An Wealth Management successively issued 8 announcements on the rate adjustment of wealth management products, and reduced the fixed management fee rate of A and B share products such as "Ritianli" to 0.01% before December 31. On the same day, CMB Wealth Management also lowered the fixed investment management fee rate of four series of products, including "Zhaorui Wentai" and "Zhaorui Heding", from 0.15% annualized to 0.02%.

According to the announcement of wealth management companies, since December alone, more than 10 wealth management companies have issued preferential rate announcements for their products, and some products even have a rate of "0".

A person from a wealth management company told the reporter of China Business News that the reduction is mainly due to the fixed management fee, which is also an inevitable trend after the introduction of the rate reform work plan for the public fund industry in July. "However, recently, various wealth management companies have actively promoted phased fee reductions, mainly because the net value of wealth management products has fluctuated for a long time, coupled with the downward adjustment of benchmark performance, and investors' investment enthusiasm has been greatly affected. In this way, investors' willingness to subscribe is increased to a certain extent. ”

In order to further enhance investors' confidence in the investment of wealth management products, more and more wealth management companies have opened the "self-purchase" model.

CMB Wealth Management announced that it would invest RMB10 million in its equity-based wealth management products with its own funds. IB Wealth Management also made it clear that it plans to use its own funds to invest in one of its dividend strategy products, with a maximum investment of 30 million yuan.

Boyin Wealth Management also stated in the announcement that based on its confidence in the long-term healthy and stable development of the mainland capital market, as well as the company's determination to continue to improve its investment and research capabilities, and in line with the principle of risk sharing and benefit sharing with the majority of investors, Boyin Wealth Management has invested 300 million yuan of its own funds to subscribe for a series of wealth management products issued by the company.

In the view of Wang Jie, a researcher at Puyi Standard, wealth management companies are optimistic about the mainland economy and capital market for a long time by purchasing their own wealth management products, and expect to use real money to boost market and investor confidence.

Bai Wenxi, chief economist of IPG China, pointed out that banks and wealth management companies can send a stable and reliable signal to the market through self-purchase products, which can attract more investors to participate in the purchase, and then increase the scale and income of wealth management products.

"Banks and wealth management companies are confident in their own products, believing that the returns, risks and other factors of their products can attract more investors, so they are willing to use their own funds to buy their own products and improve the influence and credibility of their products. Bai Wenxi said.

Zhou Maohua, a macro researcher at the financial market department of Everbright Bank, also said that due to macroeconomic and market fluctuations, the net value of some wealth management products has fallen excessively. "On the one hand, wealth management companies believe that the valuation of relevant wealth management products is significantly deviated from the fundamentals and is 'undervalued', and they are optimistic about the future valuation repair of the products; ”

In addition, Wang Jie also emphasized that through self-purchase of its products, wealth management companies can promote the sales of wealth management products, ensure the smooth issuance of new products, and stabilize and improve the management scale and market share at the end of the year. "At the same time, the current stock market is at a low valuation, and the value of medium and long-term allocation has been very prominent, and wealth management companies believe that it is necessary to actively deploy the equity market. ”

The willingness to allocate financial resources still needs to be improved

Fee reduction promotion, self-purchase expansion...... Behind the recent measures taken by wealth management companies to enhance investors' enthusiasm for investment, it also reflects that the attractiveness of bank wealth management to investors has been greatly weakened.

Zhou Maohua believes that in recent years, affected by macroeconomic and market fluctuations, the overall fluctuation of the net value of wealth management products has increased, the yield has declined, and the sales growth of wealth management business has been weak.

According to the recent report of Guosheng Securities' fixed income team, the market as a whole, as of December 8, the overall net failure rate of wealth management was 2.87%. In terms of the types of institutions, the net failure rates of joint-stock banks, urban commercial banks, rural financial institutions and wealth management products in November were 4.17%, 2.48%, 1.34% and 4.13% respectively, while the net failure rates of fixed income, equity and mixed products in November were 2%, 48% and 25% respectively.

According to the statistics of Puyi Standard, as of the end of November 2023, there were 2,117 products with a net value per unit, accounting for about 4.10%, and 1,600 products with a cumulative net value, with a proportion of about 3.38%, which decreased significantly compared with September and October, and gradually fell back to the general level.

Dong Cuihua, a researcher at Puyi Standard, pointed out that since the third quarter, the yield of wealth management products has gradually fallen from the high yield in the first half of the year, and has now stabilized. Considering the macroeconomic upturn and the recent recovery in the stock market, the yield of wealth management products may improve in the fourth quarter.

Under the influence of the downward adjustment of yields, investors have become more cautious in the allocation of bank wealth management products in the second half of the year. As yields stabilized in the fourth quarter, banks and wealth management companies went out one after another, boosting investors' enthusiasm for subscription.

Bai Wenxi said that in the current market income performance of wealth management products and changes in the scale of wealth management, self-purchased products can play a role in stabilizing the market and guiding investor confidence. At the same time, it is also a way of self-marketing and promotion to increase the visibility and market share of your own products.

From the perspective of investors, low-volatility stable products such as fixed income are currently more favored. Bai Wenxi said that from the perspective of product types, cash management wealth management products, fixed income products and equity wealth management products have been favored by investors. "Compared with the past, investors are more inclined to choose those wealth management products with lower risk and stable returns, and they pay more attention to factors such as liquidity, maturity and risk level of the product. At the same time, some new wealth management products such as pension target funds and hybrid funds have also attracted the attention of investors. ”

According to the latest report of CITIC Securities, a total of 2,952 new bank wealth management products were issued in November 2023, with an increase of 715 products month-on-month, an increase of 32.0% month-on-month, and a year-on-year increase of 650, a year-on-year increase of 28.2%, marking the 10th consecutive month of year-on-year growth. "The proportion of newly issued fixed income products remained high, and the number and proportion of newly issued commodities and derivatives hit a new high for the second consecutive month. And the proportion of new T+0 products has rebounded significantly. ”

However, Zhou Maohua also pointed out that in recent years, due to the special macroeconomic and market environment, in order to reduce the fluctuation of product net value and stabilize the expected return, institutional wealth management products still occupy an absolute proportion in the allocation of fixed income assets;

Zhou Maohua emphasized that the competitiveness of wealth management companies in the future should reflect their investment and research capabilities and product innovation capabilities, minimize the fluctuation of product net value, and provide investors with sustainable and attractive returns.

(Editor: Zhu Ziyun Proofreader: Yan Jingning)