121 Public Fund Liquidation Records: Scale Weapon Sharp, Lonely Inferior Products Cleared At That Time.

Looking back in 2019, the fund liquidation is no longer uncommon.

In December 19th, Chuang Jin and Shun price growth fund issued a liquidation report. The reason for liquidation is the corresponding date after three years after the effective date of the fund contract (November 2, 2019), and the net asset value of its fund is less than two hundred million yuan, triggering the termination of the fund contract.

According to the twenty-first Century economic report reporter statistics, there are 121 public offering liquidation as of December 19.

Although the volume of liquidation is less than 2018, it is still the second year. Since November, as of December 19th, 18 funds have been declared for liquidation of the rich countries for two years, including pure debt, regular opening of Huaan Rui, long letter, Shanghai Securities and Hong Kong stock exchange, and national investment bank and so on.

"Fund liquidation is the norm in the industry." In December 19th, a securities brokerage fund told the business reporter in twenty-first Century. Although many people in the industry have mentioned this point when communicating with reporters in twenty-first Century, the new changes are still emerging.

For example, bond funds, which were seen by many agencies as a weapon of scale, were reduced to liquidation in an instant. Including the mention of the rich countries' two-year pure debt, etc., this year as of December 19, a total of 48 bond fund liquidation.

Looking back in 2019, fund liquidation is not uncommon. - Song Wenhui diagram

Lonely stars?

According to the twenty-first Century economic report correspondent statistics, the number of mixed funds and bond funds in the 121 public offering funds that ended in December 19th this year is 55 and 48 respectively, accounting for 45% and 40% respectively. In addition, there are 12 stock funds and 2 monetary base gold and 4 QDII funds.

Compared with last year's 423 liquidation data, this year has been reduced. However, according to the classification, the number of liquidation of mixed funds last year was 246 and bond funds were 130, accounting for 58% and 31% respectively.

Comparatively speaking, up to now, the liquidation of bond funds has increased compared with last year, while the proportion of mixed funds decreased.

It is worth mentioning that bond funds frequently became the main force in the public offering market last year. Especially in the year-end market boom, the number of new bond funds in November and December accounted for a high proportion.

Data show that in November last year, 92 funds were subscribed to, of which only 58 were bond funds, accounting for 63%. In December of the same year, 33 of the 75 funds were only bond funds, accounting for 44%.

"At that time, mainly institutional funds were subscribed, from the breakdown of product types, the medium and long term pure debt funds accounted for the highest proportion, is also a common type of customized products. When the A share market was superimposed on the stock market, the new stock type product was indeed rather difficult, so everyone was partial to debt basis. A public fund worker in Beijing told the twenty-first Century business reporter.

From this year's market situation, bond funds seem to be no longer in a position.

Recently, a short debt fund of a fund company announced that its net asset value of the fund has been less than 50 million yuan for 50 consecutive working days. The relevant provisions show that, after 60 consecutive working days, the net asset value of the fund is less than 50 million yuan, and the fund contract will be terminated and the fund property will be liquidated.

From the situation of several bond funds that have gone to liquidation, liquidation is still an important reason because the net asset value of the fund is below the required standard.

For example, Jinying added rich pure debt, Long Sheng double red 1 years, TEDA Manulife Rayleigh and many other products were liquidated for 60 consecutive working days. The net asset value of the fund was less than 50 million yuan or the opening day was the last day. The net asset value of the fund was less than 50 million yuan, triggering the termination clause stipulated in the fund contract.

The data of fund assets scale before liquidation are often different. For example, the net assets of the fund operated by the rich countries in the end of the two-year period before the liquidation of the pure debt amounted to 47 million yuan, while the requirement for termination of the trigger fund contract was the net asset value of the fund plus the amount of the effective purchase application on that day and the amount transferred to the fund in the conversion of the fund, and the balance of the effective redemption amount and the balance of the transfer amount in the conversion of the basic fund was less than 200 million yuan.

In addition, the fund's net assets before the last day of the liquidation of TEDA Hongli were only 2521.95 yuan, and the net assets of the fund were 610 thousand and 900 yuan before the final operation day before liquidation.

As a matter of fact, just before several fund liquidation, the issuing boom in the market has not stopped. A few days ago, the amortization cost method bond fund became a dark horse at the end of the year. At the same time, many companies' bond products were being issued.

In fact, the short and medium term debt fund is a good product, but only when it is sold in a bank, the high net worth customers will choose to buy a more profitable bank financing. Last year, the size of the medium and short term debt products increased because of the new liquidity regulations issued in 2017, the size of the cargo base was limited, the liquidity was limited and the profits fell. Such funds just hit the gap. A public fund worker in Southern China told the twenty-first Century business reporter.

Inferior products come out

According to the twenty-first Century economic report reporter, on the one hand, some liquidation funds failed because of poor performance. On the other hand, some funds had been unable to go up after the withdrawal of "help money".

"Fund liquidation is a common phenomenon. There are several possibilities. First, when the fund was established, the scale of the fund was relatively small, and then the performance was not ideal or the large amount of money was redemption, so as to trigger the liquidation. Second, many bond funds were outsourced funds before, most of them were large institutional structures. In the past two years, influenced by the new regulation of the administration of assets, many outsourcing funds were withdrawn, resulting in the increase of the mini funds. Third, many funds would help to buy funds in order to achieve the establishment conditions, and when the funds were withdrawn, subsequent funds could not follow up, which would trigger product liquidation." Zhang Ting, a fortune researcher, thinks.

For some fund products which are relatively well received but go towards liquidation, a Southern China public offering fund person said, "from the product type of winding up products, some funds belong to the historical products of the stage. Although the proceeds have always been good, but because of the good risk of capital or the change of the way of investment, they bring different choices of investment methods. Fund demand is different. Fund liquidation is also normal.

"For the market, the survival of the fittest is a normal thing. The liquidation of the fund is also based on the natural consequences under certain conditions. The impact on the market is relatively limited. For investors, it needs attention. Once the fund is liquidated, it will generate capital expenditure." Zhang Ting thinks.

"This is a manifestation of the market's poor quality products. Before, people would seek help funds to maintain the scale requirements and ensure that they could not be liquidated. Now there are many liquidation funds in the market, the impact of liquidation is not big, and the cost of capital is high." The aforementioned agencies were interviewed.

However, judging from the current market situation, the number of winding up funds has decreased significantly this year.

"A very important reason is that this year, the science and technology board has saved a large number of mini funds, and at that time, the science and technology board has been playing a new role. Many companies are also using this to maintain their scale." The aforementioned public fund people said.

As a matter of fact, the industry is also seeking new incremental space, especially after the end of the year, when the inferior products are constantly clearing.

"We have recently issued a short debt product, although it may not be the best time to issue it now from a sales point of view. But short debt itself is good, liquidity is relatively high, low interest rate environment, short debt yield is no longer worse than the long debt. At this time, our layout is also aimed at enriching product lines and providing investors with different choices. A medium-sized public fund people interviewed pointed out.