The US FOF Has Entered The Stage Of Rapid Development, Becoming The Mainstream Of Family Financial Management.

Since 2002, the US FOF has entered a stage of rapid development. Every year, the capital flowing into the FOF market is increasing substantially. After 2008, the capital inflow growth rate has slowed down. In 2015, 58 billion US dollars still flow into the FOF market.

By the end of 2015, the number of FOF raised in the United States has reached 1404, and the total scale has risen from 68 billion 960 million US dollars in 2002 to 1 trillion and 720 billion US dollars.

In addition to the global financial crisis in 2008, its share showed an overall upward trend.

Meanwhile, the total number of FOF increased from 268 in 2002 to 1404 in 2015.

Among them, the total number of mixed FOF and bond FOF amounts to 1404, and the proportion of net assets is as high as 92%, while the number of stocks FOF is only 180, and the scale accounts for 8%.

In terms of quantity and scale, hybrid FOF dominates FOF in the US public offering.

By comparing the proportion of assets managed by us mutual funds in the whole mutual fund industry in recent ten years, we can find that since 2013, the FOF share in the US mutual funds of about 16 trillion US dollars has been maintained at 10%.

In 1995~2000, the enthusiasm of the US family investment mutual fund reached its peak. After 2005, the American family of the investment fund basically stabilized at 50 million or more, accounting for about 45% of the total investment families.

In the past 10 years, except for a slight outflow of US $31 billion in 2008, other years showed a net inflow.

The proportion of mutual funds reached the highest level in 2013, reaching 46.3%.

The fund continues to be favored by American families.

In 2015, US households reduced their stock assets by US $249 billion and increased their investments in funds and bonds by US $187 billion and $308 billion respectively.

But 2012~2014 added more than 400 billion US dollars a year.

As early as the end of the 1990s, FOF had already made its debut.

At that time, the US economy entered a period of prosperity and development.

In the new stage of bull market, individual investors' demand for financial products has increased sharply. The type and quantity of mutual funds in the United States have rapidly expanded. It is difficult for ordinary investors with limited energy and professional level to select, track and manage their own funds. The public offering of FOF has attracted wide attention.

In March 1985, pioneer group took the lead in launching the first truly public FOF product in the US market, which invested 70% of its assets in the stock market, and 30% of its assets invested in the bond category, and the underlying targets invested in the company's funds.

At this time, the fund product line is becoming more and more perfect. There are internal integration needs in the fund company's different location products. At the same time, the FOF built by the company's fund can also enhance the company's sales performance.

The national securities market improvement act, promulgated in 1996, abolished the restrictions on fund companies issuing FOF and pushed FOF into a new development process. According to the type of underlying fund invested by FOF, the public offering FOF was divided into seven categories: mixed investment funds, equity funds, alternative investment funds, fixed income funds, money market funds, commodity funds, convertible securities funds and real estate funds.

In terms of quantity and scale, hybrid FOF dominates FOF in the US public offering.

In 2015, the number of FOF raised in the United States amounted to 1404, of which the total number of mixed FOF and bond FOF totaled 1292, and the scale of net assets accounted for 92%, while the proportion of stocks FOF was 8%.

Related reports of CAITONG securities show that the parent funds of mixed FOF mainly invest in fund products, such as stock, bond, currency and alternative strategies, reflecting the strategic core of asset allocation in the FOF category, which is widely concerned by the market.

The single type of FOF accounts for a small proportion.

And bond class FOF has a certain scale. The scale of other types of money market FOF, commodity fund FOF, convertible securities FOF, real estate FOF and so on is very small.

It is noteworthy that in recent years, diversified product tools such as commodity sub funds and alternative investment sub funds are increasingly appearing in hybrid FOF.

In the past ten years, FOF has played an important role in asset allocation, fund screening and risk aversion. It helps people to choose better funds and diversify risks from a wide variety of funds.

Mutual fund FOF has been favored by people and has been developing rapidly.

More and more large and medium-sized fund companies are also actively distributing FOF products. The assets of mutual fund FOF are growing. To meet the demand of the market, the total scale of FOF assets of the top eight fund companies of the US mutual fund FOF assets shows an increasing trend.

Although there is fierce competition in the market share market, mutual funds

The degree of centralization of the layout declined, but the proportion of FOF assets in the top eight companies of FOF assets remained at 70%~80%.

From the data of FOF industry in the United States, this is a highly concentrated oligopoly market.

The top three fund management companies, Vanguard Group Inc, FMR Co Inc and Pu Xing asset (T Rowe Price Associates Inc), account for nearly half of the total assets of the US management market. The top ten managers occupy nearly 3/4 of the market share, showing a highly concentrated market trend.

The top three fund managers in the US FOF market share are large Asset Management Co with improved product lines and diversified internal products.

The sale of FOF mostly adopts the management mode of "insider + internal fund", and the management fee is almost zero, and only the sub fund management fee is charged.

This mode has better solved the problem of double charges for FOF.

The management fee of FOF is obviously lower than that of non FOF fund. Most of FOF's management fees are less than half of that of non FOF management fees, and the management fee of FOF is decreasing year by year.

For large fund companies in the US, FOF is more important to introduce new subscription funds to fund companies, and profit is not the first goal.

In order to attract customers, fund companies are often willing to make concessions on the management fees of FOF, down from an average of 1.04% in 2008 to 0.73% in 2015.

The advantage of FOF in the US is to invest regularly in the target date fund in FOF, which can help investors get better investment and purchase points in long term and improve the long-term reporting rate of investors.

For the purchase fund, the timing of purchase is a very important factor. Investors should try to avoid high point buying and low selling.

Through the analysis of the ten years' return rate of different funds in the United States, it is found that regular investment target date fund can solve the problem of the time of the purchase fund well, so as to get a higher rate of return in the long run.

Ping An Securities's FOF research report shows that the advantage of FOF is not to get a higher yield in the long run, but to improve the long-term risk return ratio of the fund, making the long-term growth of the fund's net value more smoother.

From the perspective of yield, only in the investment cycle of 10 years, the average annual yield of FOF can barely outperform non FOF.

However, FOF has a better performance in standard deviation, SHARP ratio and maximum retracement rate than non FOF.

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