The first quarterly report of the public fund has landed, and the position change is not the focus.
The point is that the people continue to vote with their feet and abandon active funds!
The redemption of the people made the public fund panic, so it chased more ups and downs in strategy, which intensified the internal friction of A-shares.
If they continue to play style drift like this, they will be abandoned even more in the future.
1. Active funds are abandoned
In the first quarter of this year, the total share of partial stock funds decreased by more than 3% quarter-on-quarter, and the share of existing active partial stock funds decreased by 150 billion.
And there is a trend of decreasing quarter by quarter.
It is normal for the stock to be redeemed, because the people originally liked to sell old funds and buy new funds.
The fund company is also well versed in the minds of the people, so they always keep issuing new funds to attract the people to subscribe.
In the past, the issuance share of the new fund was greater than the redemption share of the old fund, so the share of the fund could continue to increase.
In the first quarter, the share of newly issued active equity funds fell sharply by only 19.8 billion.
The share of mixed equity funds has been declining since last year. I am afraid that this trend will not stop for a while and a half.
The redemption pressure of the people will bring great pressure to fund companies and fund managers, so the temperament has changed greatly.
Second, the style of active funds drifts, chasing up and down
In order to retain the people, we must do a good job in performance.
But it is very difficult to do a good job in the short term, and there is no other way than to play style drift and chase up and down.
This can be seen from the change in positions in the 1st quarter.
Those who increased their positions more were better in the first quarter.
Those who have reduced their positions more are those that did not perform well in the first quarter.
However, can this style drift make the fund's performance better?
Maybe some funds can. But looking at the entire public fund, it may be the opposite.
The index of equity-biased funds is still down 4.14% this year as of April 19, while the CSI 300 is up 3.21%.
The position of the partial stock fund is about 87%, and the lower position does not make it fall a little less.
Why is this happening?
The reason is very simple, the specific time of the fund's addition and reduction of positions is unknown.
They may cut heavily at the bottom and add to their positions after the surge.
Then it is likely that they have become contrarian indicators instead.
After a while, once the style was switched, they were slapped in the face again.
Since 2022, they have all been slapped in the face many times.
But under the pressure of redemption, I couldn't help but mess around.
As professionals, they should know that short-term timing is very difficult. The more you move, the more you get wrong.
3. Keep sending research reports to fool people
We can see that various institutions are expressing their views every day, expressing optimism about a certain sector.
It is even predicted how much more it can go up.
This is properly for leeks to see.
Why?
Because these institutions have adjusted their own positions, of course, they have to express their opinions and fool others to carry the sedan chair.
However, the direction of rebalancing is different for each institution, and the views in the market can be described as a hundred flowers.
It's up to whomever tells the better story.
Fourth, position adjustment exacerbates internal friction and liquidity shock
Their frequent operations are a kind of internal friction for A-shares as a whole.
And once they rebalance together, it is easy to cause short-term liquidity shocks.
If it weren't for the national team that has been injecting liquidity, I'm afraid the market would have collapsed many times.
This is a classic tragedy of the commons: everyone wants to make excess gains, and the result is that everyone loses money together.
But this can't be stopped, because it's determined by the position.
Only by changing the rules can this kind of group internal friction be stopped as soon as possible.
How to change the rules?
Fifth, the way to stop internal friction
First, strongly protect the CSI 300
The CSI 300 is the benchmark for all institutions, and if it loses the CSI 300, it will have no face.
So the people will speed up the redemption. Thus reducing the proportion of active funds.
At the same time, the national team can continue to lock chips in the CSI 300.
The national team is a super long-term fund, and he will not operate non-stop in the short term.
In this way, internal friction can be reduced.
Second, reduce management fees and handling fees
A lot of people may not understand why we need to reduce management fees and fees.
They thought it was giving investors a profit.
In fact, this is an acceleration of the liquidation of active funds.
After the management fee is reduced, the fund that is too small will no longer exist, because the management fee received will not cover the team fee.
There are more than 2,000 equity funds with a scale of less than 100 million, accounting for nearly 50%, and equity funds are the same, accounting for nearly 50%.
In addition, after the fee is reduced, the income of the fund company is also reduced, and they have to think about reducing the cost.
The easiest and most effective way to do this is to liquidate a portion of the smaller active funds.
Please note that the smaller the fund, the more it likes to play style drift and rotation. Because it's more flexible.
Large-scale funds cannot do rapid rotation.
Third, limit the number of active funds issued and encourage the issuance of index funds
Index funds do not have the problem of frequent operation and rotation.
This significantly reduces internal friction.
Fourth, the introduction of long-term capital pressure
I don't need to explain much about this.
Fifth, change the evaluation system of fund managers
For example, salary limits, which can prevent managers from going to extremes in order to blindly do large-scale regardless of the interests of the people;
For another example, if a part of the manager's income is used to purchase funds managed by himself, he will not dare to rotate casually.
For example, after leaving the public fund, set a quiet period for job hopping. Prevent managers from deliberately going to extremes to gamble, so as to run away after making results. He took Jimin's money to gamble on the style, everyone was happy if he won the bet, and Jimin paid for the loss.
And, of course, there are rule changes for private placements and quants. I've said it before, so I won't repeat it here.
Sixth, scolding is useless
We are all angry and want to scold fund companies and fund managers.
But scolding is useless.
Because each character has their own position, as long as the position does not change, the problem cannot be solved.
And the key to changing positions is to change the rules and change the relationship between them.
There is still a long way to go for the reform of A-shares.
But that's already a good start......
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