Recently, Huaan CSI OrientationAdditional issuanceEvent Index Securities Investment Fund Announces, Will Be Transformed into GEM 50ETFLink the fund. On the same day, Jiutai Ruihua Flexible Configuration Fund was converted into a listed open fund (LOF), the fund is flexibly configured by Jiutai RuihuaHybridThe securities investment fund changed its registration. The pace of withdrawal of fixed-income funds is accelerating. The existing fixed-income funds are also facing the dilemma of shrinking scale, low yield and even loss.
Fixed-income fund to accelerate transformation or liquidation
As a fixed fundIndex fundThe CSI Oriented Incidental Event Index, which was tracked by Huan’s CSI Oriented Incident, was officially released by China Securities Index Co., Ltd. on January 14, 2016. The index mainly selected stocks that disclosed the private placement plan in the past year as a sample to be selected. The method constitutes a constituent stock, and it can be said that it can generally reflect the performance and investment opportunities of the entire fixed market.
But in less than three years, the only fund that followed the index declared a transition, which seemed to imply a bleak value of the index's investment. The data shows that as of November 7 this year, the annualized return of the fixed-income index for the past three years was -22.05%.
In fact, before this, some of the fixed-income funds were liquidated, including Guangfa Xinsheng for 18 months. Guangfa Xinsheng was established on November 18, 2016 for 18 months, with a scale of 261 million yuan. On July 31 this year, the fund was liquidated. From its inception to liquidation, the fund's cumulative yield was 2.65%. Not even running outMonetary FundThe proceeds.
More fixed-income funds are converted to LOF after expiration, including Guotai Rongfeng's extended growth, Boss Ruiyi event drive, Ping An Dahua Dingyue, Jia Afford, Zheshang Huijin Dingying event drive, Cathay Pacific UBS Ruitai Multi Strategy, these funds were established between the second quarter of 2016 and the first quarter of 2017, many of which have an operating cycle of 18 months. After the fund expires, it will automatically transform into a listed open fund ( LOF). According to this cycle, the second half of this year is just the period of transition. As of the end of the third quarter of this year, the latest assets of the above-mentioned transformation funds are lower than the total size of their issuance.
Less than 4% annualized return is not uncommon
The existing fixed-income funds are also facing the dilemma of shrinking scale and obvious losses.
According to statistics, as of November 7th, there are 48 fixed-income funds in the market. These funds are generally established in 2016 and 2017. The total assets at the end of the third quarter of this year totaled 31.365 billion yuan.Fund issuanceThe total size of the time was 53.576 billion yuan, which has shrunk by about 41%. In terms of revenue, as of November 6, only 3 of the above 48 funds have accumulated more than 10% of their cumulative returns since their inception, namely Boshui Huizhi's return, Qianhai's open source refinancing theme and Jude.泓富A, the cumulative yields are 16.78%, 14.73% and 11.88%. However, from the perspective of annualized returns, among these funds, the establishment of more than one year, only one annualized return of more than 10%, the remaining annualized return of up to 5.76%, most of the fixed-income fund annualized return is less than 4 %, compared to the overall yield of the money fund in the past two years does not have much advantage.
At the same time, many fixed-income funds have significant losses. For example, Caitongfu Shengding has a cumulative rate of return of -25.48% since its establishment on January 25, 2017. More than 80% of the fund's fund assets are invested in related stocks. The other two funds that can use the fixed-income strategy, such as the Caitong multi-strategy Fuxiang and Caitong multi-strategy upgrades, have yields of -27.35% and -20.70% respectively. In addition, GF's refinancing theme has more losses, and the cumulative rate of return since its establishment is -19.3%.
Behind this is the change in regulatory trends and the failure of the growth strategy. Under the regulatory environment of setting new policies and reducing new regulations, the market will be depressed, the number of listed companies will increase substantially, and the investment opportunities brought by fixed increases will not be as good as before.
The data shows that, based on the date of issue, as of November 7 this year, a total of 201 listed companies in the A-share market have issued private placements, and the total amount of funds raised was 63.21 billion yuan. In the same period from 2015 to 2017, the number of companies implementing private placements was 609, 656, and 406, respectively. The total amount of funds raised was 925 billion yuan, 1,360.5 billion yuan, and 809.2 billion yuan. It can be seen that both the number of issuers and the number of funds raised have shown a downward trend. In this context, it is expected that the future fixed-income fund will also accelerate its exit.
(Article source: Financial Investment News)