Only 1 subscribed fund has caused controversy, and fund companies have paid out of their own pockets, and the screen is full of what is the mystery behind the initiation?

Finance Associated Press, January 11 (Reporter Yan Jun) Is the fund really unsellable?

Recently, the more controversial is the initiation fund, and people who do not know the inside see that the number of fund subscribers is only 1, and it is the fund company that uses the inherent funds to invest, that is, "out of pocket" to set up a new product, thinking that "the fund company has completed the issuance to entertain itself".

Looking at a set of data, Wind data shows that in 2023, there will be 23 new funds with 1 effective subscription data, and 43 funds with 2-5 effective subscriptions. It is true that most of these fund issuances are raised in the second half of the year, which coincides with the market shock adjustment time.

Looking at the situation since the beginning of this year, initiator funds are becoming the norm. Judging from the fundraising situation since January alone, more than 10 funds, including E Fund SZSE 50 ETF Feeder Fund, Wells Fargo SZSE 50 ETF Feeder Fund, Bank of Shanghai State-owned Enterprise Dividend, ChinaAMC CSI Big Data Industry ETF Feeder Fund, and Taikang CNI Public Health and Health Feeder Fund, have all been raised in the form of initiation.

In the eyes of industry insiders, the issuance market is cold, and the issuance of initiating funds has become the norm, and there is some truth in the argument of "self-entertainment", but not much. "There is a certain reason" lies in the current situation of the equity market, which is indeed the helplessness of investors to buy depressed sentiment, but on the other hand, this is also the choice of the low-level layout of the fund company, the initial offering scale is relatively small, and the fundraising period of new products is also shorter, most of them are 1 day.

In addition, there is another feature of this year's new fund issuance, the fund company spares no effort to initiate the establishment of an ETF over-the-counter feeder fund, and even has a view to shout the slogan "2024 is the real first year of the over-the-counter and on-site dream linkage", but the public offering person told the Financial Associated Press reporter that there is another mystery behind this.

Initiator funds are issued in clusters

To understand that there is only one subscription for public funds, you must first understand what an initiation fund is.

According to public information, the so-called initiator fund refers to a certain number of funds initiated and established by fund managers and executives subscribed in the capacity of fund sponsors. Initiator funds do not need to consider the issuance threshold of 200 million yuan for public funds, and can be established if the fund company's shareholder funds or the company's own funds purchase more than 10 million yuan, but the lock-up period is 3 years.

Initiator fund is a form of post-pressure fund operation, which lowers the threshold for establishment at the same time, but also strengthens the exit mechanism, if the initiator fund is established 3 years later, if the fund asset size is less than 200 million yuan, it needs to be liquidated.

Since the Shanghai Composite Index fell below 3,000 points, there has been a significant increase in the number of initiating funds. According to last year's data, there are 23 funds with 1 subscription in the whole market, 15 were established in the second half of last year, and 10 were raised after November, and the final issuance scale is also 10 million yuan, which obviously shows an increasing trend.

This year, in terms of newly established funds, initiation has gradually become the norm, and incomplete statistics from the reporter of the Financial Associated Press show that as of January 11, there have been more than ten new funds for initiation, especially in the past 2 days, the "recruitment and establishment" classification, full of net initiation!

These initiator fund types cover ETF feeder funds, quants, bonds, pension FOF, etc., and are not limited to equity types. A fund company told the Financial Associated Press reporter that when the market is not good to raise, the fund company passively "lightly debuts, heavy holdings", through the initiation of funds, first forward-looking planting of "seeds", and more emphasis on the establishment and listing of the product after the establishment and listing of the product through the long-term investment accompaniment to raise the scale of the product.

There is a mystery in the fact that ETF feeder funds account for the highest proportion of initiations

Judging from the recent new initiation funds, the ETF feeder fund accounts for the highest proportion. For example, Huatai Pineapple Pan Southeast Asia ETF Connection, Wells Fargo SZSE 50 ETF Connection, E Fund SZSE 50 ETF Connection, etc., as well as Cathay CSI Oil and Gas Industry Connection, Cathay CSI Robot Connection A, Cathay CSI Information Technology Innovation Theme Connection, Cathay CSI All-Index Integrated Circuit Connection and other products under the industry theme ETF giant Cathay Pacific have all adopted the form of initiation to establish OTC feeder funds.

The above-mentioned fund company told the Financial Associated Press reporter that in the past two years, the A-share market has been volatile and adjusted, and the fund company has laid out a number of initiating feeder funds with the company's own funds at a low market level.

Rather than wasting too much time on the issuance of over-the-counter feeder funds, it is better to quickly set up with its own funds to respond to the transformation needs of banks and third-party channels to sell ETF feeder funds, and the scale increase is considerable.

"After the rapid establishment, as the scale grows, the ETF feeder fund can quickly transfer from over-the-counter to on-exchange, or double the scale, which is the second reason. The above-mentioned person said.

Therefore, the "cousin" of the fund V predicts that 2024 may be the "real first year of the dream linkage between over-the-counter and on-exchange" index products.

The dilemma of counter-cyclical layout

Of course, the main reason for the increase in initiating funds is the lack of enthusiasm of the injured people. Everyone understands the truth of counter-cyclical layout, but it still can't avoid "chasing up and down" in personal practice. It's human nature and it's a dilemma for institutional sales channels.

A few days ago, a bank APP pop-up window "do not invest in the stock market" immediately caused controversy, there is a view that the stock market is low, do not persuade investors to layout, but to push the already high debt base, what is the intention? The bank is also aggrieved, the bank involved said that this itself is a pop-up advertisement of a pure debt base, and has no other meaning. There are even bank salespeople who ask their souls, "What about the last wave of customers who are still stuck in liquor and new energy?

Everyone knows that in the current fund issuance market, it is necessary to do "difficult but correct things", but the point is: it is too difficult!

(Financial Associated Press reporter Yan Jun)