Fund Evaluation 10 Institutions Have Advocated "Long-Term Concept": Without The Record, The "Award" Will Become History.

When the domestic fund evaluation business will reach ten years old, this format is ushering in more changes.

In twenty-first Century, the economic news reporter learned from the fund evaluation industry that 10 existing fund evaluation and award institutions (hereinafter referred to as evaluation institutions) jointly signed the proposal to adhere to the long-term evaluation and play the professional value, including Jinan, Morningstar, and Tian Xiang, etc., and put forward three proposals in adhering to long-term evaluation, enhancing professional value and promoting long-term investment.

The China Securities Investment Fund Association (hereinafter referred to as the China Association for basic cooperation) believes that this move is conducive to advocating the industry's long-term development orientation, practicing long-term investment philosophy, and promoting long-term capital formation, and adopting measures such as strengthening self regulatory supervision, pre evaluation plan preparation, standardizing evaluation citation and participating in awards, and so on, and strengthening self-regulation management of fund evaluation business.

In the view of the industry, this initiative will change the situation of some fund evaluation formats such as excessive attention to management scale and short term performance. It will further help investors select excellent fund managers and fund products, and promote the good quality and bad development of the industry.

The fund evaluation industry has launched an initiative closely related to "long-term" and "professional". - Song Wenhui diagram

Advocating "long-term"

The fund evaluation industry has launched an initiative closely related to "long term" and "professional".

In twenty-first Century, the economic news reporter was informed that ten fund evaluation agencies recently signed a proposal to uphold long-term evaluation and give full play to their professional values.

According to the proposal, the ten evaluation agencies that signed the proposal were Jinan Jinxin, Morningstar and Tian Di three independent rating agencies respectively. Haitong, Shanghai, merchants, Galaxy four brokerages, and China media, Shanghai Securities and times three media organizations, and these 10 institutions were the first batch of institutions to obtain the fund evaluation business qualification in China.

From the content of the proposal, the 10 organizations mentioned in the proposal are related to encouraging long-term investment, value investing, and guiding investors to pay attention to the long-term profitability of the fund.

For example, the proposal put forward that since 2020, the fund evaluation has mainly focused on the performance of the three years or above, and no award has been made for the fund which has been established for less than three years.

"Optimize the award of the fund, cancel the one-year Fund Award, highlight three, five years and other long-term awards." The proposal points out that "to eliminate the short-term performance ranking, do not rank the fund that has been established for less than a year, and do not rank the single index of the fund in less than one year".

In the view of the industry, this measure excludes short-term performance, and emphasizes the assessment of long-term performance, which objectively improves the threshold of fund products being praised or awarded. Therefore, the fund evaluation will also have higher gold content.

"This means that in the fund evaluation dimension, more attention will be paid to long-term investments, because the investment performance below three years may be related to subject matter or a topic, which may not really reflect the long-term investment ability of investment managers." A public offering agency operator said, "if a fund manager can maintain profitability in three to five years or even longer cycles, it is also very rare. It also makes such awards or awards more golden."

"It is reasonable to not evaluate a single product, a single indicator or a product within a year, because too many evaluation dimensions in the past have led to the efforts of many fund companies in pursuit of evaluation on a certain indicator, but this phenomenon itself will breed many problems." The above public operators said.

More than that, short-term publicity activities in the name of "weekly champion" and "monthly champion" and misleading investors to conduct short-term investments will also be declined by the fund's evaluation body.

The above proposal proposes that we should publicize long-term investment ideas and guide investors to pay attention to long-term returns.

"We need to publicize the concept and methods of fund evaluation and fund evaluation, and promote the fund managers and fund sales institutions to standardize the use of fund evaluation results, and guide investors to understand the role of long-term investment and regular fixed investment, and to cultivate investors' scientific investment philosophy that pays attention to the adjusted risk of long-term risks." The proposal is put forward.

In addition, the scale of industry that has been used for many years has been declined by this initiative.

"The fund evaluation industry voluntarily eliminated the scale ranking, and in fact, it was echoed with a series of actions such as the restriction of the scale of the regulators, the cancellation of the cargo base and the scale ranking." A fund raising body close to the regulators said, "the scale of the fund has brought a lot of chaos to the scale, which is contrary to the interests of the principal."

Enhance the professional degree of evaluation

While emphasizing the long term, the professional competence of the fund evaluation and the optimization of the evaluation mechanism are also mentioned in the proposal.

The proposal puts forward that we will further optimize the classification standard of funds, adopt the corresponding evaluation system for different types of fund products, and pay attention to the comparability of funds.

"We should optimize the fund evaluation mechanism, pay more attention to the evaluation indicators such as the long-term performance stability of the fund and the distinctive style of investment, so as to give full play to the role of the benchmark for performance comparison, and pay close attention to the actual investment operation of the fund and the performance of the fund contract." The proposal put forward, "at the same time, strengthen the professional value of the Fund Award, highlight the long-term investment ability of fund managers, especially the evaluation of equity investment ability, strive to streamline the number of award-winning institutions, and fund awards.

"The industry is not suitable for some indicators, such as the excessive decentralization of indicators and the excessive number of awards. This will in itself reduce the value of the Fund Award and give investors the trouble of choosing fund products and fund managers and deviating from the original meaning of fund evaluation. The operators said, "for example, some products are only suitable for comparison with similar products under specific indicators, and some other indicators are not able to reflect the professionalism of evaluation institutions. These phenomena are expected to be changed."

Many evaluation agencies that participate in the initiative seem to be able to guide the development of the fund market towards a more healthy value orientation.

Wang Rui, research director of Morningstar China fund, said the incident has a value guiding role in the development of the industry.

"Morningstar has adhered to the idea of long-term investment and value investment when it made early ratings. After 2010, it was mainly based on three years rating five years rating." Wang Rui said, "we signed this Convention this year, in fact, we hope that more institutions and investors in the market will be able to know our value orientation."

"The purpose of the initiative is to guide the market to take a long-term investment concept, whether it is for investors or asset management institutions, investment and management of fund managers must have a long-term concept, because only long-term investment can achieve good returns." Haitong Securities Research Institute deputy director and chief analyst Gao Daode said.

"There are also many dimensions of fund evaluation in the past. Sometimes, when almost a lot of evaluation results come out, almost all fund companies can get corresponding awards. This state of industry can not achieve the best quality of fund institutions through fund evaluation, and select truly valuable fund products and excellent fund managers." The aforementioned close to the regulatory authorities of the public offering agencies also said.

Association four initiatives support

For the initiative launched by the fund evaluation industry, the China Association for basic cooperation has given clear support and said that this move will help the industry to establish long-term development orientation, implement long-term investment ideas and promote long-term capital formation.

At the same time, China Foundation said that in the future, it will carry out self-management in many dimensions, implement relevant initiatives of the proposal, and play the role of baton in fund evaluation.

For example, the China Foundation will focus on strengthening the self-regulation of short-term single index ranking and fund award business, focusing on the issue of compliance with information disclosure in the business process.

At the same time, the association also requires the Fund Award institutions to record the evaluation plan before the award business is carried out, and if it does not meet the relevant provisions of the fund evaluation, it is not allowed to conduct a rating, award and single index ranking for the investment income and risk of the fund or the management ability of the fund manager in an open form.

"This means that the future Fund Award activities need to be documented and audited by the association, and the unqualified awards will not be allowed to be carried out in an open manner." Those who are close to the regulators say that this will further regulate the chaos of the fund awards in the industry.

In addition, the China Foundation association requires fund managers and sales agencies to strictly abide by relevant laws and regulations when they quote the results of the fund evaluation. They should not quote or publish the fund evaluation results provided by the non-compliance organizations. Members of the fund association should strictly abide by the relevant regulatory provisions and self-discipline provisions, and will not participate in the awards and awards activities organized by the non-compliance evaluation agencies.