The FOF Market Is Ushering In A Strong Contender.

Since the beginning of this year, regulators have repeatedly issued FOF products for public funds, clearing up institutional obstacles, and FOF becoming a hot market again.

Reporters learned from a number of fund companies, in the preparation of FOF, QDII and commodity futures two kinds of targets may become the new water test varieties of the new business. Based on the advantages of shareholders, the company will issue FOF for Morgan's Fund in the coming week. In addition, the industry believes that commodity futures funds are more appealing because of smooth income, and they may also be the first to test the water.

In fact, as a forerunner of securities firms, the feedback of public funds into the FOF market is not too strong at present.

At the same time, broker managers have their own concerns about the development of FOF in China.

The broker managed by the broker said that the securities management has many years of practical experience in the field of FOF products, and the investment research system is complete. At the same time, with the continuous increase of private clients, the advantage of securities companies is becoming more and more obvious.

With the public FOF guidelines landing,

The market has ushered in a strong contender. There are market participants who are worried about this.

Shenzhen, a medium-sized broker general manager Lin (a pseudonym), said, "public offering products to raise funds threshold is relatively low, for the broker information management must have an impact.

But when the fund is established, it will be faced with how to choose investment targets. From this perspective, I think the market faced by securities firms and funds is still the same.

Xu Li, a financial researcher on the grid, said that from the investment point of view, domestic FOF is still in the initial stage of development, and the future market will be vast. Any new type of investment organization will be introduced, whether it be banks, securities firms or

It will not cause a big impact on the FOF market.

From the sales point of view, the public offering fund has the characteristics of low investment threshold and strong liquidity, which will bring certain diversion in the FOF sales volume. But for high net worth customers, they pay more attention to the choice of high quality and professional FOF, and do not care too much about the FOF. issued by those organizations.

In fact, apart from the public offering fund, the broker management system is also redistributing FOF this year.

According to the reporter's earlier understanding, at the beginning of this year, the state capital information management specialized set up a FOF team, the current team size of 11 people, also issued the first FOHF. Xing Xian information management related personage also said, the company has equipped with fund researcher, in the future will increase investment in product design and research and development, and strive to make FOF into Xingxian information management a new boutique line.

Lin said that the reason for the recent FOF boom was the diversification of investment varieties.

"Not only can we invest in stock products, but also quantify products and receive products. If we mix these in FOF, we can reduce risks."

A general manager of a brokerage company in Shanghai is more interested in investing in public offerings.

"We believe that the public investment and research system should be more complete. We have never invested in private equity products.

We are growth stocks investors, so when selecting a team, we will also recognize the fund companies that invest in growth stocks.

A large broker in Shenzhen also endorsed the above view, he pointed out.

Not only can we invest in public offerings, but also in private placement.

"We are now paying more attention to private equity products.

Many private products are hosted in securities companies. We have a clear understanding of their style and have a long-term track of their performance.

Some of our FOF products are invested in these customers. "

Although brokerage management is the first institution to test water FOF in China, in the past ten years, FOF products have not flourished as expected.

According to statistics, there are 8020 financial management products collected by brokerages, of which only 792 are FOF types, accounting for only 9.88%.

According to the statistics of the positions held by the securities companies in the past years, the "fund" varieties accounted for 41.96% of the holdings data of the securities management companies in 2005.

Since its entry into 2013, "

"Positions have been below 20%, and only 10.86% in the first half of 2016.

Lin Li told reporters that "when the FOF scale was developing, the securities companies basically had FOF products. Later, the market gradually declined, and the net performance of FOF products was not satisfactory. Customers gradually redeemed, and the scale of products gradually shrank.

At the same time, in the past two years, the income of fixed income products has been rising well.

This is the two main reason leading to the small size of FOF.

Xu Li said that there are two main reasons for the slow development of FOF in securities companies. "First, because many brokerages have the ability to actively manage and invest in stocks, early brokerages FOF will retain a certain proportion of stock investment, which accounts for about 30% of the total, resulting in the function of FOF selected private placement managers and balanced allocation is broken, and the overall performance is general; second, broker FOF management is not the main business of securities companies, resulting in inadequate staffing and resources in the corresponding product line."

The former Shanghai securities company Zi Guanzi company has always indicated that in fact, it is more important for the broker to manage its core competence in its own hands.

"The size of asset management assets of brokerage firms is not so large that they are less than insurable.

Because of the large amount of funds, insurance can not make specific investment. Unless it has a very large investment and research team, insurance will disperse funds to different fund management companies to manage. They need to examine the style and sustained returns of each fund company, so that FOF can make sense.

The scale of financial products managed by securities companies is only billions of dollars. If the company's initiative management ability is acceptable, it is better to do research and investment on its own, so the effect will be more direct.