(This article was published in the 7th edition of the "Financial Investment News" this Saturday, and the original article plagiarism must be investigated)
Su Yu
Recently, rongtong, Jiutai, Chuangjin Hexin fund three public offerings of the new fund issued the "fund contract can not take effect of the announcement", the three funds announced the same day the issuance failure, as of October 31, the number of funds failed to raise this year reached 32 (at the time of writing, PICC Assets issued an announcement on November 4 that the fund contract of its subsidiary Poly Chun bond fund can not take effect), setting a record in the calendar year. Compared with the previous scene of the new fund "daylight-based" frequently appearing and subscribing to the second light, it can be described as a world of difference. Why is fund issuance so dismal now?
If we refer to the stock market as a sea of stocks, then the funds are the giant whales in the sea of stocks.
Recently, watching TV, I saw the tragic footage of whales swimming collectively to the shoals and committing suicide, and I suddenly thought: those fund managers who hold huge funds in their hands and are known as the proud sons of heaven have deviated from market cognition, like whales collective suicide, mistaking the shoals for the sea. The reason why whales commit mass suicide is because whales do not rely on their eyes to discern directions, which is similar to dolphins. The whale's eyes are extremely disproportionate to its massive body, the eyes are only the size of a blue ball, and generally can only see objects within 17 meters, and the vision is extremely degraded. Whales rely on an innately sensitive echo ranging skill to measure objects, feed and navigate. The ultrasonic frequencies they emit are extremely wide, and such ultrasonic waves will reflect back immediately after encountering obstacles, forming an echo. Whales accurately determine their distance from the obstacle according to the round-trip time of this ultrasound, and the positioning is very accurate, and the error is generally very small. One year, in Florida, a group of reckless orcas ran aground en masse at Lodgetki Beach, and zoologists found many round insects in the inner ear of the whale. The researchers therefore believe that the in-ear parasite destroys the whale's echo localization system, which may be the culprit that causes the whale to run aground and make a fatal mistake by not listening to the echo correctly.
The fund is the largest heavyweight whale in China's securities market, and those managers who have no hair on their mouths and high education but can't eat foreign food have made a wrong judgment because they have some "worms" in their ears, thus making collective unconscious behavior. For example, they are accustomed to holding some stocks with very high stock prices and price-earnings ratios, and lack their own investment advisory team and research team. Once those stocks that hold the group have a continuous decline due to performance decline or other reasons, it will not only kill the fund manager, but also bring huge losses to the fund holders.
In fact, there are many reasons for the failure of fund issuance.
First of all, the failure of fund raising mainly includes the lack of product innovation, and some fund managers sigh: investment targets are difficult to find, and it is difficult to go to Qingtian! From the perspective of fund companies, good product design may produce explosive funds, but the difficulty of innovation is very large, most of them can only send conventional products; in addition, fund companies need to get fund approval within 6 months to issue, if the fund does not match the market or product channels are not strong, it is indeed easy to raise failures. Secondly, the homogenization of fund products is very serious, and there are often multiple fund companies in a single track. As a result, the stock price is constantly raised, the risk is increased, and the margin of safety is out of control. Again, because the money is the foundation of the people, the profit and loss do not affect its withdrawal management fee. Some market participants also believe that the high-priced stocks of the fund group have a sharp retracement, which is to make it possible for customers to eat cheaper chips in the future, and they do not know that their short-sighted behavior will eventually lift the stone and drop it on their feet. What is lost is their personal integrity, and of course, the trust of the people in them.
However, it is not only the bottleneck of fund issuance, but also the liquidation of many funds.
Statistics show that as of October 31, 16 index funds such as Huaxia SME 100etf Linked Fund and Huaan CSI 300 Industry Neutral Low Volatility ETF have been liquidated. Of these, 6 funds were liquidated due to the triggering of the termination clause and 10 funds were liquidated due to the vote of the general meeting of holders.
Taking huaxia SME 100etf connection as an example, the announcement shows that the fund will take effect from September 10, 2018 and will expire for three years by September 10, 2021. According to the relevant regulations, on the corresponding date three years after the effective date of the fund contract, if the asset size of the fund is less than 200 million yuan, the fund contract will be automatically terminated, and the fund contract period shall not be extended by convening a general meeting of fund share holders. On September 10, 2021, if the fund's net asset value is less than $200 million, the fund's fund contract will be automatically terminated.
In addition, there are many ETF funds whose size has declined or may face the risk of liquidation. Statistics show that as of October 31, a total of 194 ETF funds have a size of less than 200 million yuan. Among them, there are 61 ETF funds with a fund size of less than 50 million yuan. If you add index funds, there are more funds with a size of less than 50 million yuan.
On November 2, 2021, according to the China Fund Report: The fund industry has a deadline for rectification: the new regulations for funds are coming, affecting trillions of dollars. The investment advisory business of managed funds and the investment advisory business of non-managed funds are two forms of fund investment advisory business, and both shall comply with the relevant requirements of the Fund Law and the Notice on Doing a Good Job in the Pilot Work of Publicly Offered Securities Investment Fund Investment Advisory Business on the qualification management and code of conduct of fund investment advisory business.
At the same time, the regulatory authorities said that the fund industry will always adhere to the principle of maximizing the interests of fund holders. This is also a reminder to public funds that they must not harm the interests of the majority of the basic people, otherwise, the failure of public fund issuance will become the norm, and public funds may become a collective stranded "cemetery base whale".
(The above individual stock analysis is for reference only, not for buying.) Buyers are at their own risk, the stock market is risky, and investment needs to be cautious)
Suyu Senior Investment Adviser Registration Number (a0730620080005) Securities Advisory Agency Number (zx0095)