Recently, there have been various rumors and complaints about fund managers on the Internet, which are essentially grievances for fund managers, thinking that the people who buy funds are bitter, but fund managers may be more bitter. What is the reason? It's the fund managers who have limited their salaries! The fund managers should all be crying!
It is rumored that the salary limit standard for public fund managers is 3.5 million! Market rumors say that two fund companies have officially issued a document with a salary ceiling of 3 million! The media believes that this may be the largest salary reform in the history of the public fund industry, and there are many versions of the public fund salary limit plan that is currently circulating, but they are all similar, and the basic salary limit is between 3 million ~ 4 million. This is the reason and the most important factor for fund managers to cry.
The first point of view, should fund managers cry when facing an annual salary of 3 million yuan?
Why do fund managers cry in the face of the annual salary cap of 3 million yuan?
There is a very big soul torture here: Is the upper limit of the annual salary of 3 million yuan really low? So low that the fund manager wants to cry? In fact, the annual salary of 3 million yuan is not low, not only is it not low, but it is also a very high income level.
According to the data released by the National Bureau of Statistics, the average salary income for the entire fiscal year of 2023 is 22,053 yuan, and the annual salary of 3 million yuan is equivalent to the total annual salary of 136 people;
Looking at the remuneration level of 127 executives of 21 listed brokerages, the current pre-tax remuneration level is less than 2 million yuan, do you still think that the annual salary ceiling of 3 million yuan for fund managers is low?
Even compared with the salary level of securities companies with relatively high salary levels, except for CITIC Securities and CICC, which ranked in the top two with 791,900 yuan and 700,400 yuan respectively, the average salary of employees of most securities companies is between 500,000 yuan and 700,000 yuan. Is the annual salary of 3 million yuan also a relatively high level?
Is it a bit unreasonable for a fund manager to cry for an annual salary limit of 3 million yuan? Isn't it a little too hypocritical? Is it a little too unaware of his surname?
The second point of view, do fund managers have the face to cry, and is their original high income a reflection of their true value?
If we think that fund managers are special talents, the income should be higher, if this theory is true, then we should see if the fund manager has the face to take this high income?
In reality, the reason why fund managers cry in the face of the salary limit of 3 million yuan is indeed because the income they took was too high in the past, and the high was a bit unreasonable.
Some netizens within the fund broke the news that the annual salary of a star fund manager Moukun is 90 million; it was once rumored on the Internet that the star fund manager Cai Songsong only paid a year-end bonus of 70 million, although the fund company responded to deny it, but did not dare to disclose the real bonus amount, which shows that the specific bonus amount must be a lot; and the market is even more rumored that the star fund managers who have been at the helm of a total of hundreds of millions of funds, such as Zhang Kun and Ge Lan, have been exposed to an astonishing annual income of about 200 million. Isn't that exaggerated? But what's more exaggerated isn't it here?
If these fund managers really bring very good investment returns to investors through fund investment, and it is reasonable for them to get more salaries, but if they are losing investors' money while still receiving huge annual salary returns, is that a typical shamelessness? If they still dislike that the annual salary of 3 million yuan is too low, is it even more shameless?
Now a lot of fund managers have become synonymous with scammers, not only because their income is too high, but also because they have brought huge losses to investors, and they also shamelessly and comfortably take high income, but also to educate investors to accept investment losses, but also to face losses to continue to hold for a long time, let fund managers continue to lose, get high salaries, if you face the annual salary ceiling of 3 million yuan and cry, is it really shameless?
There is an analysis report that more than 100 public fund companies and more than 3,000 fund managers in mainland China, who manage more than 10,000 fund products for fund investors, do not feel very powerful and have a sense of achievement, but these so-called experts and professional elites should have made money for investors and should use their professional ability to help investors improve their returns, but the result is often the opposite, they have lost nearly 2 trillion yuan in the past two years through their professional "help" of the people. This is the real money of the majority of fund investors, and it has been lost by these fund managers, including star fund managers. And some funds have suffered very heavy losses, data shows that in 2023, about 57% of public funds will have a negative return or a loss, of which 373 public funds will fall by more than 30%, and 27 funds will fall by more than 40% during the year. This is the masterpiece and level of those fund managers who have an annual salary of tens of millions or even hundreds of millions of dollars and cry in the face of an annual salary of 3 million yuan?
The chart below is from the Internet and shows the size of the funds managed by those star fund managers and the record of investment losses:
Pictures and data come from the Internet
In the past, star fund managers such as "CEIBS Gülen Medicine, Liquor remember to find Zhang Kun, and consumption depends on Liu Yanchun" and other star fund managers, who once had an asset management scale of more than 100 billion yuan and unlimited scenery, have also degenerated into loss-making stars, Zhang Kun has lost 18.08% in the past three years, and Gülen and Liu Yanchun have lost 31.56% and 20.23% respectively. The worst performer was Liu Gexiang of GF Fund, with a three-year loss of 39.68%. More importantly, some star fund managers did not find ways to improve investment returns in the face of huge losses, but walked away, leaving investors' losses to fund companies and investors, such as Gülen stepping down as manager of CEIBS Research Select and CEIBS Alpha Fund, Zhou Weiwen stepping down as CEIBS Insights for one year, Xie Zhiyu stepping down as fund manager of Xingquan Trend Investment Mix, and more than 300 fund managers leaving in 2023.
Such a fund manager, such an investment performance, and still cry because of the salary limit of 3 million yuan? Should they cry more about their unemployment? Instead of crying for an annual salary of 3 million yuan?
The third point of view is what is the core of fund manager compensation?
Logically, if the fund manager can really bring very high returns to investors, it is understandable to get a salary, but if it is by cheating investors and bringing losses to investors, then there should not be a penny of income, which is the core of the basic fund manager's salary.
What should be the core of a fund manager's compensation? There are three main factors:
First, it is linked to the profit performance of the fund's investment. As long as it can bring income to investors, it can be shared according to the level of income, which is the remuneration you should get, and the investment income is high, and the salary of the fund manager should naturally be high. But what about now? Fund investment losses of more than 30 percent or even the highest loss of more than 90 percent, fund companies and fund managers have not forgotten to charge management fees. The bigger joke is that the fund manager lost tens of billions of dollars, charged billions of management fees, and then quit and ran away.
According to the data of the article "The Biggest Joke of Fund Investment: Who Doesn't Understand Whose Heart Between Fund Managers and Investors?", all public funds in 2022 lost a total of 1.4 trillion yuan of investment principal to fund investors, but the total management fee income collected by fund companies throughout the year reached 144.243 billion yuan, and the fund management fee charged in 2022 rose by 1.71% under the premise that the loss was worse than that in 2021. At a time when the vast majority of fund investors suffered heavy losses, there were still 6 public funds that each earned a net profit of more than 2 billion.
In 2023, the fund will continue to lose a large amount of money, and the 198 fund managers will have a total income of 135.653 billion yuan in management fees in 2023, and 10 of them will exceed 3 billion yuan, of which the management fee income will reach 9.274 billion yuan The annual performance won the first place in all public fund products, and the management fee was still 1.4089 million yuan, of which the net management fee payable to the fund manager was 847,700 yuan.
If the fund manager's investment performance cannot be linked to the investment income, but let them receive remuneration based on the size of the fund, the upper limit of 3 million yuan salary is meaningless, and they cannot make them feel incompetent, and can only make the fund manager feel that he is wronged, and he can only rely on his ability to deceive the fund investment, why only let him get an annual salary of 3 million yuan?
Second, fund investment should be regarded as illegal for abnormal transactions. In addition to the management fee income commission, the fund manager also has some illegal income, which may be the bulk of the fund manager's income, and if the salary limit is 3 million yuan, this problem may be more serious, therefore, it must be clear in the law that the fund manager can only take the fund investment income share, and other transaction income is illegal. According to the financial story "The biggest joke in the fund industry: I thought that the fund would be de-retailed, but in the end it became a retail de-fund", the reason for the loss of fund investment is that some fund managers took over at a high level.
At the end of last year, Liu Mouxiang, the star fund manager of GF Fund, took over 6 stocks at a high level, causing investors a loss of 30 billion yuan and collecting 1.2 billion management fees in 3 years! Since 2022, 9 products have lost a total of 33.199 billion yuan, and in addition to collecting management fees of 1.254 billion yuan, they have also taken over six stocks at a high level. In 2023, there will be 30 funds under China Southern Fund with a loss of more than 20%, with a cumulative loss of 39.929 billion yuan and a management fee of 2.628 billion yuan.
Third, if the fund manager invests in rat warehouses, rents securities, or receives income from high-level transactions, he should be guilty of accepting bribes in accordance with the law. According to market rumors, the investigation of the former star fund manager Cai Mousong caused a great shock in the fund circle, and the main problem was to take over the private placement, and it is rumored that several fund managers were involved in related issues. At that time, the scale of the fund managed by Cai Songsong had reached 30 billion to 40 billion, and the salary should be at the level of 10 million, but he still used the fund products he managed to take over the private placement position at a high level for half a year, and collected a total amount of about 10 million.
Even if those so-called star fund managers receive an annual salary of tens of millions, they still sell the interests of the people, and use the money of fund investors to take over at a high level and establish a rat warehouse for personal gain, so the salary limit cannot solve their greed and desire at all. Strict regulation, severe crackdown, and strengthened professional constraints are the problems that fund managers must face in the future, and that is the moment when they should cry, rather than crying in the face of the salary limit of 3 million yuan.
Fund managers are crying in the face of an annual salary of 3 million yuan, and they cry well. But they should cry in the face of the income adjustment of the fund industry, the code of conduct of fund managers, and the compliance of fund managers with laws and regulations, because for those fund managers, it is the deadliest future. For the majority of fund investors, that is the future that fund investors are most looking forward to, and it is also the future of the fund industry. (Qijian said Finance)