In this year's new fund of 2.4 trillion yuan, fund raising failures have also become the norm, and recently there are 3 funds in 1 day at the same time announced the phenomenon of issuance failure, which is a rare situation in recent years.
On October 26, the new funds under the three public offerings, including Rongtong, Jiutai and Chuangjin Hexin Fund, issued the "Announcement that the Fund Contract Cannot Take Effect", setting off a wave of small climax of the failure of the issuance of new funds.
After the above three new funds announced the failure of fundraising, the number of funds that failed to issue this year increased to 28, approaching the sum of the bear market in 2018, and the total number of failed funds in recent years also reached 114, and the failure of new fund raising gradually became normalized.
rare!
3 funds failed to raise funds in one day
On October 26, Rongtong Fund's Rongtong Steady Tianli Hybrid Fund, Chuangjin HexinXinyu Hybrid Fund under Chuangjin Hexin Fund, and Jiutai CSI 500 Index Quantitative Enhancement Fund under Jiutai Fund issued announcements of fund raising failures.
Rongtong Steady Tianli launched its offering on July 23 this year, and the new fund also set a ceiling of 8 billion yuan in fundraising through the public offering of sales agencies. As of the expiration of the fund offering period on October 22, 2021, the fund fails to meet the fund filing conditions stipulated in the fund contract, and the fund contract cannot take effect.
Chuangjin Hexin Xinyu and Jiutai CSI 500 Index Quantitative Enhancement Fund, which have the same fundraising period as the above-mentioned funds, also began to be raised on July 23, 2021, and the fund raising period expired on October 22, 2021, and could not be established during the three-month fundraising period.
The above-mentioned funds were issued in the same file period and announced the failure of fundraising on the same day, this phenomenon appeared on March 3, 2018, when 3 funds such as Yinhua Huibo regular opening, Minsheng Plus Silver Wilmar, and Yinhua Huijing regular opening also announced the failure of issuance on the same day, and in the big bear market of that year, the number of funds that failed to raise reached 33, setting a record for the past year so far.
From the perspective of the types of funds that failed to raise funds, among the funds that failed to issue in 2021, 19 were equity funds and 9 were fixed income funds, which had a greater relationship with the relative downturn in the equity market this year and the greater difficulty of making money for funds.
"Since the Spring Festival this year, A-shares have adjusted, the top fund has withdrawn a lot, and investors' enthusiasm for investing in new funds has also cooled down rapidly." A person in charge of the public offering market department in Shanghai said that the public equity fund experienced two years of rise in 2019-2020, and the money-making effect fermented, which once triggered the popularity of new fund issuance. However, this year's market structure is prominent, the market style changes greatly, if there is no investment in the popular track, most of the fund performance is relatively mediocre, which also leads to the difficulty of fund issuance.
A public equity fund manager in Beijing also analyzed that there are more failed funds issued this year, one is because the number of new funds issued is more, the number of newly established funds this year is 1440, and a certain proportion of fundraising failures occur, which is also reasonable; second, there are more homogeneous layouts of the same type of funds, and many innovative funds have been declared, approved, and issued at the same time this year, which will naturally lead to polarization of the issuance scale; third, the huge earthquake in the market this year has also allowed investors to lower their risk appetite and prefer stable investment varieties. The difficulty of issuing equity funds will increase, but some star fund managers with excellent long-term performance will still have strong market appeal.
Equity fund issuance is cold
The average issuance size of the stock base is just over 200 million
In this year's A-share structural market, the overall money-making effect of the fund has declined, which has also led to a rapid cooling of the issuance of new equity funds.
Wind data shows that as of October 26, the 53 newly established funds in October this year raised a total scale of 46.8 billion yuan, and the average fundraising scale of a single fund was 882 million yuan, falling below the 1 billion yuan mark on the first day of this year.
From the perspective of fund types, the issuance of equity funds is also more difficult. In October, 17 equity funds were issued, with an average issuance size of 221 million yuan, only higher than the establishment line; 18 hybrid funds were issued, with an average issuance size of 971 million yuan, which was also the lowest record in the year.
From the perspective of the subscription period of equity funds, the average number of subscription days of the 35 equity funds established in October is 26.2 days, which is more than the 18.1 days and 24.7 days in August and September, which is also the longer period of recent equity fund issuance. Among them, Jiutai Tianli Quantitative, Rongtong Xinxin New Growth, Penghua Anyuan 5-month holding and other funds, the subscription period exceeded 80 days.
The above-mentioned Beijing public equity fund manager said that the fund issuance is difficult, one is related to the channel resources of various public offerings, some small and medium-sized companies have fewer channel resources, and are not included in the "white list" of bank channels, products may not be arranged in important slots, they may face difficulties in the establishment of funds; on the other hand, fund issuance difficulties and market money-making effects There is also a direct relationship, fund investment lack of money-making expectations, will also encounter market cold reception.
From the data point of view, the number of fund raising failures also has a strong correlation with the stock market.
Wind data shows that as of October 26, the number of funds that failed to raise this year reached 28, and since the first failed fund raised at the end of April 2017, The first failed fund, Jiahe Ruijin, has failed to issue 114 new funds. Based on the date of the announcement of the failure of the new fund issuance, the number of funds that failed to raise funds from 2017 to 2020 was 8, 33, 20 and 25 respectively.
Judging from the types of funds that failed to raise funds, there is a close relationship with the basic market conditions of the year. In the 2018 A-share bear market, the number of failed fundraising of equity funds exceeded that of fixed income funds, and when A-shares recovered rapidly from 2019 to 2020, the number of failed issuance of equity funds was significantly lower than that of fixed income funds. In the 2021 market, it is more difficult for equity funds to make money, and the effect of making money is not as good as in the past two years, while the fixed income market has picked up, which has also led to the failure of equity funds to far exceed the number of fixed income products.
Judging from the monthly record of fund issuance failures, in the market downturn from August to September 2018, the number of funds that failed to issue was also 6 for two consecutive months, and in the rapid recovery of A-shares in the first quarter of 2019, the funds that failed to issue were also cleared for several months.
In view of the above phenomenon, a person in charge of the public offering market department in Shanghai believes that the changes in the basic market are directly related to the failure of new fund raising: in the hot year of the stock market, tens of billions of explosive equity funds continue to appear, fund sales are hot, and the phenomenon of fund issuance failure will be reduced; in the A-share bear market, the lack of money-making effect of funds and the decline in investors' risk appetite will lead to the situation that new funds are not cared about.
"However, equity funds are 'good to do, good to do is not good', and when there are difficulties in the current fund issuance, it may also be a better investment opportunity." The head of the public offering marketing department said.
Source: China Fund News