With the grand release of the book "Private Securities FOF: Funds in Funds in the Era of Big Asset Management", the series of activities of "Fund World FOF Reading Club" were also successfully held: Beijing on April 9, Shanghai on April 24, and Shenzhen on April 26. One of the biggest highlights of the event is the public FOF forum attended by all the proposed FOF managers, which is the highest level of professionalism to date. Today, we would like to review the speech of Ms. Zhu Kun, the proposed FOF Manager of GF Fund Management.
First, the core point of view
Asset allocation is a very famous head, but behind him reflects the essence of the problem, that is, we do FOF people, he wants to express what kind of asset attributes, income characteristics to our customers.
Moderator Yang Ruyi: Some time ago, the president of the Asset Management Association of China delivered a keynote speech on the dilemma and way out of public funds. He believes that the current public funds have structural imbalances, encountered development difficulties, and need a comprehensive supply-side reform to complete the industry's self-revolution. Truly take responsibility for providing financial inclusion and innovation in the industry. The only way out of public offering lies in the supply-side reform, the current public fof has landed in the public fund market, and will bring more vitality to the public fund. What kind of development prospects and investment value will your FOF bring to the public offering industry?
Zhu Kun: The impact of FOF on the future is enormous. From two perspectives. In the first aspect, fof is first of all a brand new product, a completely new form. Last year we put forward a concept ourselves, we think that FOF or fund portfolio, is a public fund industry product + Service 2.0, because before the launch of fof, the products we issued were all around a single capital market, for example, equity funds characterized the rise and fall of the stock market, bond funds characterized the rise and fall of the bond market, and gradually transitioned to the emergence of mixed funds, but in recent years we found that our products can not meet the customer, because our assets, as Teacher Wang said, our asset distribution is not very continuous, stock fluctuations are too high, bond asset returns are not enough, we need some products to make up for the characteristics of intermediate-grade risk returns, and fof itself is a good realization tool. This is a very necessary condition for FOF to push out.
Fof as a new product is of great value, and we think it is mainly in two points. The first one is that it can meet a lot of special functions for FOF products. Because FOF is in the form of a combination, and then reshape the risk-return characteristics of this capital market, for example, there are many formed products overseas, which are very large and very good, including the target date type, including the target risk type, which is easy for customers to understand, which is not available in China before, and it is certainly a lot of room for development.
In addition, there is dynamic allocation, all investors have a goal, that is, they all want to add value in a long-term and steady manner. Just now you have also talked about many examples, in the end, investors want to get, no matter what kind of assets you are, the final desire to get is a long-term stable income. This type of long-term stable return, hybrid dynamic configuration fof is the optimal expression.
The public fof itself only charges management fees, no performance commissions, for all participants may only need a thousand dollars to participate, for most retail customers, he participates in such a low-cost long-term stable investment, which is of great significance.
So from the perspective of products, I think the value of public fof is to fill a lot of the original blanks.
After the launch of the public FOF, it will also have a huge impact on the public offering industry itself, for example, in the past in the company, everyone attaches great importance to the ranking, and after the real FOF comes out, everyone will find that in addition to the yield ranking of the fund, everyone will also pay attention to style stability, sustainability and so on. For example, the current commodity, the alternative fund in the quantification is particularly fast, because when the asset allocation is found, the product structure on the market is uneven, and for the allocation of people, it will force the fund product design field, promote the original industry, and launch more investment varieties. In addition, the launch of public FOF will also undergo some changes in the form of the industry, for example, the original different fund companies are not very interoperable, but after having FOF, everyone will investigate each other, and some changes have taken place in the format.
So I think the emergence of FOF is definitely a very, very important change in the pattern of the public offering industry as a whole, which is also a very important reason why our company has been laying out this business since 2014.
Moderator Yang Ruyi: At present, the industry generally believes that the core function of FOF lies in his asset allocation ability, and in the future, public FOF may be more suitable for the development of public funds.
Zhu Kun: GF has been publicizing to the outside world that we have long identified us as fof, asset allocation type FOF. In fact, I would also say that there are many types of FOFs, and some of them are funds that do pure equity, pure currency, pure fixed income, that is, pure alternative investment.
Why domestic people put asset allocation in a very primary position is actually two reasons: First, from the perspective of overseas research, it is true that mixed FOF has basically occupied 66% of FOF for such a long time in the past, that is, two-thirds of Jiangshan. The securities market has developed for such a long time, and the stock fund has such a large market, and the bond fund has such a large market. In fact, the first background of FOF is to fill the gap that we think there is no, so asset allocation is actually a good entry point, which is why in the overseas development process, the final hybrid FOF can develop so big is very important reason, this is the first.
Second, from the perspective of the attributes of domestic assets, domestic products are very difficult to allocate assets, but they must be asset allocation. First of all, domestic assets are relatively small, and the second is that our equity assets are relatively small in the proportion of institutional investors, and the fluctuations are relatively large. In such a situation, if the customer wants to be in a stable income situation for a long time, he definitely needs to do asset allocation. Although asset allocation is not easy to do, it is certainly a big wave of sand and sand.
We feel that asset allocation is not only asset allocation, may be from the perspective of asset allocation, the final result in the domestic situation, more is to study the asset + strategy, this strategy refers to two meanings, the first is that he needs more tactical strategies to supplement a lot of assets are relatively small, asset correlation is relatively high. Second, you may look for some alternative strategic asset funds as a core allocation.
In any case, in response to what Lin Zong (E Fangda) said, after the launch of fof products, there are many overseas strategic products, but where we start from, this is to see what kind of income attributes you want to express to investors and what kind of income attributes you want to create for him.
Investment is actually an expression of the investment manager's feelings about the economy and life. So that's important. Asset allocation is a very famous head, but behind him reflects the essence of the problem, that is, we do FOF people, he wants to express what kind of asset attributes, income characteristics to our customers. Purely from the topic of long-term steady appreciation, the entry point of asset allocation is very good, and I am also optimistic about the future prospects, which requires the efforts of all FOF practitioners.
3. Special instructions
(1) The above article is completely based on the shorthand of the guest's speech, and has a heavy trace of speaking, so please read and understand it from the perspective of speaking. I have only made changes to a few obvious typos, and the purpose of this practice is to keep the original character of the guests' speeches as much as possible. If there are any deficiencies, please understand.
(2) Later, we will also invite guests to provide some professional articles written by themselves, in order to seek a more comprehensive and in-depth discussion of public fof.
(3) If there is a choice of media, please indicate the source: the public account "Wang Qunhang".
4. Introduction of Zhu Kun
Investment Manager of GF Fund Asset Allocation Department, FRM, Master of Probability and Mathematical Statistics of Nankai University, Bachelor of Information and Computing Science and Finance of Xi'an Jiaotong University, 6 years of experience in securities industry. He joined GF Fund Management Co., Ltd. in July 2011 and has served as a risk management and fund performance evaluation post, a researcher in the International Business Department, a researcher in the Alternative Investment Department, and a member of the asset allocation team of GF Fund. Since October 2015, he has been the investment manager of the asset allocation department, mainly responsible for the strategy related to financial engineering, the research of fund products and the management of fof.
For more information, please visit the website of the financial community (www.jrj.com.cn)
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