Recently, the issuance of several products of CICC Fund has failed, pushing this small and medium-sized fund company to the cusp of the storm.
The new base folding is just a phenomenon, with one of the "three in one China" cicc (CICC) such a "good father", seven years after its establishment, mini base everywhere, the reason behind it is not a "matthew effect of the industry" can be simply summarized.
New Base Fold! A dismal end
According to The China Fund News, as of March 18, the total scale of new fund issuance since the beginning of this year has exceeded 1,000 billion yuan, nearly doubling year-on-year. This is unique in the history of public funds, even in 2020, when the new base issuance blowout, the overall market issuance scale took nearly half a year to reach trillion yuan.
The unprecedented scale of the new base issuance also makes the failure of the two products of the CICC Fund particularly eye-catching. In February this year, CICC Fund had two mixed funds fail to raise, namely CICC Fengsheng Mix and CICC Fengying Mix.
The proposed fund manager of both funds is Qiu Yanbing, who also has a one-year holding period mix of CICC Hengyuan in the centralized subscription period, which began on March 15, 2021 and was scheduled to end on March 26, 2021.
Interestingly, on March 26, the product issued an announcement that in order to fully meet the investment needs of investors, in accordance with the relevant provisions of the document, CICC Fund decided to extend the fundraising period of the fund to April 6, 2021 after consultation with the fund custodian China Everbright Bank Co., Ltd. and the fund sales agency.
So, is it really to meet the investment needs of investors, or is the fund having difficulties in raising funds and has not reached the scale of establishment by March 26? This requires the answer from the CICC Fund.
According to the Daily Fund Network, Qiu Yanbing is a doctor of economics, and previously worked for the Central Foreign Exchange Business Center of the State Administration of Foreign Exchange, serving as a researcher of the Strategic Research Department, an investment manager of the first investment department, and the director of the investment division of the second investment department; later, he transferred to the idea fund, Hetai Life Insurance and other companies to hold investment research positions.
In January 2020, Qiu Yanbing joined CICC Fund and is currently the deputy general manager and fund manager of the company. At the same time, according to the announcement of CICC Fund on March 5, Qiu Yanbing has been appointed as a director of the third board of directors of the company.
Qiu Yanbing is currently a "big beam" in CICC Fund, with a management scale of 3.247 billion yuan as of March 19. There are 7 products managed by Qiu Yanbing (regardless of A/C), including CICC Kanazawa, CICC Ruihe, CICC Ruikang Flexible Configuration Mix, CICC Taishun 12-month Fixed Opening Hybrid, CICC Ruitai Flexible Configuration Mix, CICC Growth Select Hybrid, CICC Hengyuan One-Year Holding Period Hybrid (in the pipeline) and so on.
From the performance point of view, Qiu Yanbing's previous seniority is quite deep, although the fund manager has been in the service for less than a year, but the performance is remarkable, as of March 19, the performance of the six existing hybrid products ranked in the top 50% of the same kind, and some products even ranked in the top 15% of the same kind.
(Picture from The Daily Fund Network, screenshot date March 21, 2021)
Mini bases are everywhere, and it is difficult to grow the scale of equity
The failure of the new fund and the extension of the fundraising time seem to be out of time, catching up with the market "cooling", coupled with the short tenure of the fund manager, there is no brilliant record in the past, resulting in unfavorable teachers.
However, looking back at the product performance in the history of CICC Funds, not only can the performance not pick out a few eye-catching, but also small and micro funds are piled up, and many of them have been on the verge of liquidation for many years, and it is no wonder that investors do not trust CICC Funds when they issue new products.
Founded in February 2014, CICC Fund is a brokerage-affiliated fund company, of which China International Capital Corporation Limited ("CICC") is a wholly-owned shareholder. According to the daily fund network, as of March 21, 2021, the management scale was 54.531 billion yuan, with 66 funds and 13 fund managers.
From the perspective of product structure, CICC funds are mainly based on goods and debt, and stocks and hybrid funds together account for only 15% of the total size.
Wind data show that as of March 21, ciccumb fund money market fund management scale of 20.999 billion yuan, non-monetary type of 33.531 billion yuan, non-goods-based, equity and hybrid funds of 2.415 billion yuan, 5.823 billion yuan, bond funds of 25.240 billion yuan, in addition to alternative investment of 0.53 billion yuan.
In terms of scale, as of March 21, CICC Fund had 25 products with a scale below the liquidation red line of 50 million yuan, accounting for nearly half, of which 14 were less than 10 million yuan.
According to the relevant laws and regulations of Chinese funds, the conditions for the liquidation of public funds are: for 60 consecutive working days, the net assets of the fund are less than 50 million or the number of share holders is less than 200. This means that these funds also have the risk of liquidation.
As far as equity products are concerned, at present, only the 3-year closed mix of CICC Kechuang Theme and the 12-month fixed opening mix of CICC Taishun have a scale of more than 1 billion yuan, and the fund managers are Ding Yang and Qiu Yanbing. In addition, CICC Fund also has 4 products such as CICC Rui and A, CICC Rui Anti-Flexible Allocation Hybrid, CICC Ruitai Flexible Allocation Hybrid, and CICC Jinze A with a scale of more than 500 million yuan, and the fund managers of these four products are Qiu Yanbing.
Qiu Yanbing manages most of the large-scale products of CICC Fund, and it is conceivable that Qiu Yanbing may be used by CICC As a "life-saving straw". However, I may not have expected such a failure to raise a new foundation for Qiu Yanbing.
Among the equity products, there are also more than a dozen funds with a current scale of less than 50 million yuan, including Zhongjin Hengying Hybrid A managed by Chen Fanglei, CICC Gold Sequence Quantitative Blue Chip C managed by Wei Wei, CICC Ruixiang A and so on.
A hybrid fund with a CICC fund size of less than 50 million yuan
A handful of problem products
Mini-bases are everywhere, and investors can still avoid small products. However, judging from the performance of CICC's past products, is it worth trusting?
Detective Brother found that looking closely at these products can be called problematic.
First of all, the long-term profitability of CICC fund products is questionable, such as the "best" performance of CICC Ruixiang A, which seems to have high net worth returns, but mainly due to the small scale and the "fatness" of the net value caused by large redemptions by investors;
Secondly, some products with decent performance, the recent frequent changes in fund managers, the departure of fund managers with better performance, and the new fund managers have weak experience and rank low after taking office. According to the daily fund network, there are currently 13 fund managers in CICC Fund, with an average working experience of less than one and a half years, of which only Shi Yu, who is in charge of fixed income, has nearly 5 years of fund management experience;
Third, a number of large-scale equity products are currently transferred to the name of Qiu Yanbing, qiu Yanbing is pinned on high hopes, the current performance is good, but the long-term performance still needs to be verified. The other equity products of CICC Fund are mostly small and micro funds, and both the scale and performance are "uncertain".
There is no basis for saying that there is no basis, let's first look at the "masterpieces" of the equity class of two CICC funds:
1. "Best performance": CICC Ruixiang A
At present, among the products of CICC Fund, the highest increase since its establishment is CICC Ruixiang A. Ciccumference Ruixiang A was established on November 13, 2018, the fund manager is Wei Wei, and the net unit value as of March 19, 2021 is 4.7991, up 379.91% since its inception, ranking first among more than 2800 funds of its kind in the past two years.
After reading this, if you think this fund is very good, then you are too naïve.
Ciccumcinalis Ruixiang A's "brilliant" performance is actually based on the "expansion" of the basic people.
Looking back at history, the size of CICC Ruixiang A was only 0.08 billion yuan when it was established, and by the end of June 2019, its net assets were 0.02 billion yuan, and its net value suddenly soared in September 2019. On September 17, 2019, its cumulative unit net value was still 1.0976, but on September 18, after encountering a huge redemption, the redemption fee was included in the remaining assets of the fund, resulting in a sharp increase of 252.69% to 3.8711 on that day.
According to the daily fund network, the product subscribed for 0.47 billion shares and redeemed 0.48 billion copies in the third quarter of 2019.
CICC Ruixiang A cumulative yield trend
CICC Ruixiang A historical net worth breakdown
According to the daily fund network, as of March 19, the fund size of CICC Ruixiang A was 0.2 billion yuan. This year, the product has fallen 3.43%, ranking in the middle of the same category; in the past year, the net value of the product has risen by 30.38%, ranking lower in the middle of the same category.
2. The largest scale of equity products:
CICC Science and Technology Innovation Theme 3 years closed mix
Among all the equity products of CICC Fund at present, the largest is a three-year closed fund - CICC Kechuang Theme 3-year Closed Hybrid. Founded on July 11, 2019, it has assets of 1.689 billion yuan as of the end of 2020. As of March 19, the fund has risen 70.08% since its inception.
Seemingly good performance, but can not stand up to scrutiny. In just one and a half years since its establishment, the fund has changed its manager twice, and it is jointly managed by Wang Yanjie and Lanlan during the fund raising. After a year of joint management, Wang Yanjie and Lan Lan stepped down successively, and in December 2020, Ding Yang finally topped the list, and the main performance of this fund was also achieved by the first two fund managers when they were in office.
This is still a three-year closed fund, which means that even if the base people want to redeem it, they have no way but to passively accept the change of fund manager.
Founded for seven years, Chairman of Siyi
The so-called "iron company, flowing water of the top management", this sentence is also quite appropriate to describe the CICC fund. It is said that the management is the company's baton, but the CICC Fund has just turned seven years old, and the chairman has been changed four times.
On December 24, 2020, CICC Fund issued an announcement on the change of senior management, saying that Chairman Chu Gang left office on December 23, 2020 due to work arrangements, and was succeeded by Hu Changsheng. Before Chu Gang, Qian Ruxiang and Lin Shoukang also served as the chairman of CICC Fund, and these three were previously senior executives of CICC.
According to the announcement, Hu Changsheng worked at the China Securities Regulatory Commission from December 1998 to December 2005, successively serving as deputy director of the General Department of the Policy Research Office, member of the Planning and Development Committee (at the level of the department), researcher of the Institutional Supervision Department, and director of the Shenzhen Commissioner's Office; from December 2005 to November 2011, he worked for the Central Huijin Investment Co., Ltd., successively serving as the deputy director and director of the capital market department, the senior business director of the non-banking department and the director of the capital market department From November 2011 to November 2020, he worked at China CICC Wealth Securities Co., Ltd. (formerly China Investment Securities Co., Ltd.), successively serving as vice chairman, president, deputy director of the executive committee and director of the executive committee. He is currently a member of the Management Board of China International Capital Corporation Limited.
In addition to the chairman, the general manager, deputy general manager, director and other senior executives of CICC Fund have also changed many times.
In the near terms alone, according to the Announcement on Changes in Senior Management of CICC Fund Management Limited issued by CICC Fund on 5 March 2021, the directors of CICC Fund have changed several times in the last 12 months. According to the announcement, in the past year, according to the decision of the shareholders of CICC, the shareholder of CICC Fund, the change of directors of the company is as follows:
May 2020: Mr. Chen Gang and Mr. Li Yong, members of the second board of directors, no longer serve as directors of the company, Mr. Zhang Chun no longer serves as independent directors of the company, Mr. Xu Yicheng and Ms. Tang Yan are appointed as directors of the third board of directors of the company, and Mr. Jiang Yong is appointed as independent directors of the third board of directors of the company.
December 2020: Mr. Chu Gang ceased to serve as a director and chairman of the third board of directors of the company, and appointed Mr. Hu Changsheng as a director and chairman of the third board of directors of the company.
March 2021: Mr. Zhao Bi ceases to serve as a director of the third board of directors of the Company and appoints Mr. Qiu Yanbing as a director of the third board of directors of the Company.
According to a previous report by Beijing Business Daily, some insiders believe that the reason for the frequent changes in the chairman of CICC Fund and other senior executives may be that the company plans to improve the unfavorable situation such as poor product performance by changing the management team. However, behind the frequent replacement of senior executives, the company's original basic business structure has not been broken, but because of frequent personnel changes, it has led to "military instability", which has a certain impact on the sustainability of the company's business strategy.
Such a company, are you willing to give money to them? If you let the detective brother choose, you may be very hesitant. This explains why they failed to launch a new foundation.