"Old Innovation" Reopened After Six Years To Be Tested. Five Hushang Raised The Same Day To Test The "Floating Rate".

In November 28th, the first batch of approved floating rate fund was launched.

Twenty-first Century economic report reporter understands, Cathay Pacific research selected two years holding period mixed, China and Europe sail three years holding period mixed, Huaan Hui Chi selected two years holding period mixed, Huatai Barry boom return one year holding period mixed, rich country Alfa two years holding period mixed 5 funds are officially on sale.

"At present, the products are issued normally, and we are confident that we will do well in this innovative product." In November 28th, a related person from Cathay Pacific Fund told the business reporter in twenty-first Century.

In fact, for the public offering market, the floating rate fund product is not new. As early as 2013, the first floating rate fund was issued. But then, influenced by market changes and the gradual exposure of industrial chaos, the floating rate fund was postponed and approved by the regulators.

Until recently, the SFC issued the approval, and the floating rate fund restarted the trial. Coincidentally, at present, the innovative business of testing water is located in the fund company in Shanghai.

Floating rate fund strikes again

In addition to the 5 funds that have already been sold, the first batch of approved products is also a product of Xingquan fund.

Public information shows that the 6 floating management fee Funds adopt performance reward floating fee mode, and the first batch of performance compensation type active management rights fund is mentioned for the first batch of industries. When the holder redeem each share of the fund, the annual yield of the fund is calculated. Only when the rate of return exceeds the agreed benchmark, can the performance pay be paid for the excess part.

From the 5 floating rate funds that are being issued, the products of Huatai berry are held for one year. The products of 3 companies in Cathay Pacific, Huaan and rich countries are held for two years. The products in China and Europe are three years holding period. The upper limit of 5 floating rate fund raising is 3 billion yuan.

According to the rate, the specific requirements of the 5 funds are 0.8% of the annual fixed management fee, and 20% of the annual returns of each fund share exceeding 8%.

One thing that is widely accepted by the market is that the floating management fee fund is a fund directly charged by the fund manager to manage the fees and performance. It can break the fixed management fee "drought, flood and water conservation" mode and realize the binding of the interests of managers and investors.

"In the context of the current rate diversification industry, the floating rate fund can provide investors with more diversified choices. Investors can choose the right products according to their own risk preferences, and the floating rate will also help to reduce the burden of investors at a general market price." A large public fund worker in Beijing told the twenty-first Century business reporter.

In its view, "this mode can optimize the benefit sharing mechanism between fund companies and investors. The introduction of the performance-based pay fund will strengthen the main responsibility of the fund company and further clarify the investment objectives. Whether the fund can calculate performance rewards will be directly linked to performance, optimize the mechanism of sharing interests with investors, and achieve the binding of managers and investors' interests.

In fact, in addition to several floating rate fund products already issued by the public fund, the charging mode is also quite common among some special account products and private equity products.

According to the twenty-first Century economic report reporter combing, before many of the large collection of vouchers to the public offering products have adopted a similar performance reward mechanism. For example, a large collection of public offerings of CITIC Securities stipulates that 0.6% of product management fees will be removed, and 20% of the customers who earn more than 6% of their annual holdings will be paid as performance. If they fail to meet the standard, they will not receive performance rewards.

The re opening of the suspension after 3 years also reflects the intention of regulators to promote the development of equity products.

"The pilot of regulation is also a process of market verification." A public fund raising official in Shanghai indicated that the basic rate of floating rate fund is low, and that if we manage well, we will get more money, which will promote the fund company.

However, this product is not a new product. There have been many problems in the market. Tightened regulation is now liberalized and it is hard to say that the market will not pay the bill.

Validation of market utility

Although this rate of innovation has given investors some attraction, there are still some drawbacks to the public agencies that have been interviewed. Including whether it will lead to excessive pursuit of short-term earnings by fund managers, thus affecting the operation of long-term investments.

"We support product development and design in this area, but the specific design plan is very important." A public fund worker in Southern China told the twenty-first Century business reporter.

A medium-sized public offering fund in Beijing also believes that "specific product details need to be looked at specifically, for example, with initiating clauses and regular opening, which will be more suitable for products of this kind."

In fact, unlike the previously established floating management fee fund products, the newly approved fund products have closed operations.

"In the management mode, China and Europe set sail three years, each share set a 3 year lock in holding period, striving to keep away from short-term fluctuations, seize the long-term trend, avoid catching up and selling losses, and frequently make redemption, and strive to improve the profitability of investors, and investment income equals fund income." The central European Fund told the economic news reporters twenty-first Century.

"Lock holding period" is a solution based on the problem of volatility in China's stock market. It takes time to change space, and through long-term holding the problem of large fluctuations in the stock market. Therefore, it is hoped that through the advantage of this locking period, investors can reverse the short-term irrational redemption behavior, so that investors can share the trend of growth in stock volatility, achieve a high probability of profitability, and improve investors' profit experience. The source pointed out.

From the point of view of management fee provision, the selected products of Cathay Pacific Research and two years of sail in China and Europe have also been paid for performance in the redemption of fund shares.

"At present, the products we send are all for one year, two years and three years, and we can see that everyone's demands are also in the medium and long term. The intention is not to let fund managers too shortsighted, and to create extreme profits in order to get floating rates. In fact, such product design is also a kind of control. An analysis of a public offering fund in Shanghai.

"Public fund product innovation keeps flowing. The floating management fee rate fund attracts investors through the rate reform. At the same time, it also sets a certain holding period to reduce emotional interference, but how to make money for innovative products remains to be verified by time." Everbright Securities analyst Deng Hu believes.

"At present, we are still in the pilot stage, and many views are normal. We will wait and see that the product that will enable investors to make money in the long run will be a good product. A large public fund worker told the twenty-first Century business reporter.