Riding The Wind And Waves, Or Advancing Blindly? Can Public Fund Managers Bear The Weight Of "10 Billion"?

First, Ruiyuan fund absorbed 120 billion yuan, then huitianfu's new fund sold tens of billions in four hours, and then Penghua Fund subscribed more than 130 billion yuan in a single day

With the frequent emergence of hot money funds, the scale of some active equity funds is also rising.

The fund industry is still that fund industry, but the format is quite different.

By the end of the second quarter, 158 equity fund managers had managed more than 10 billion yuan.

A number of insiders from different fund companies said in an interview with 21st century economic reporter that the rapid expansion of fund scale not only tests the individual ability of fund managers, but also tests the comprehensive strength of fund companies.

The deeper question is, where is the management boundary of fund managers?

Crazy scale leap forward movement

According to choice data, as of July 22, 158 equity fund managers had managed a total fund asset size of more than 10 billion yuan, and were among the "10 billion level fund club.".

Among them, the fund size of Xu zhixia and Xu Huaxia's funds with a total of 500 million yuan, including the fund managers of Xu Guangxia and Liu Hongwei, with a total fund size of RMB 500 million yuan, including the funds of Xu Guangxia and Mr. Liu Hongfa, with a total fund size of RMB 500 million yuan They are 600 million yuan, Zhang Kun of e fund is 52.3 billion yuan, AI Xiaojun of Cathay Pacific Fund is 50.3 billion yuan.

According to public data, at the end of the third quarter of 2019, the management scale of Liu Gesong was only 7.22 billion yuan, which exceeded 80 billion yuan in less than a year, increasing more than 10 times.

According to the data, Liu Gesong's management scale will increase significantly in 2020, mainly due to the new development fund Guangfa technology pioneer mix in early 2020. At present, the fund scale reaches 25.738 billion yuan.

Coincidentally, the management scale of several fund managers has expanded in the past year.

For example, the fund scale managed by Zhang Kun in the same period of last year was 29.274 billion yuan, which increased by 22.977 billion yuan in one year; at the end of the third quarter of 2019, the fund scale managed by Mao Wei was 23.833 billion yuan, and the fund scale under management reached 59.613 billion yuan, an increase of 35.78 billion yuan.

According to statistics, 10 billion level fund managers are mainly concentrated in fund companies such as Huaxia, Nanfang, huitianfu, China Europe, Bank of communications Schroder, e-fund and other fund companies. Four of the top 10 fund managers come from Huaxia Fund Company.

From the statistical data, many of the 10 billion level fund managers are senior trumps of their fund companies. They have galloped in the capital market for more than 10 years, and many of them have made outstanding achievements.

For example, Wang Zonghe of Penghua Fund (44.251 billion yuan), Dong Chengfei of Xingquan Fund (36.423 billion yuan), Zhu Shaoxing of Fuguo Fund (14.260 billion yuan), Cao Mingchang of China Europe Fund (12.261 billion yuan), etc.

Among them, Zhu Shaoxing of Wells Fargo fund is the fund manager who has been managing public funds for the longest time. Since 2005, he has managed Fuguo Tianhui, and his return rate has reached 1779%.

In addition to the above-mentioned group of veterans, there are many fund managers who represent the "back wave" and have broken through the 10 billion mark in two or three years and have successfully entered the "10 billion fund club".

For example, Cai Songsong of noan Fund (19.762 billion yuan), Zhang Jun of Guotai Junan (14.501 billion yuan), Guo Fei of Schroeder of Bank of Communications (13.623 billion yuan), etc.

It is worth noting that among the 10 billion level fund managers, the phenomenon of "one dragging more" is also relatively obvious.

According to statistics, Zhang Hongchen of Huaxia Fund, AI Xiaojun of Cathay Pacific Fund, Mao Wei of China Southern Fund, Qiu Jie of Qianhai Kaiyuan and Cao Mingchang of China EU fund manage more than 10 fund products at the same time. It only refers to the management of all China Telecom equipment, including ETF.

How did the ten billion level fund managers become?

As for how the fund manager who steered the 10 billion level fund was refined, the reporter of 21st century economic report interviewed many insiders.

First of all, the net subscription driven by medium and long-term performance has helped fund managers continuously expand their management scale to the level of 10 billion.

For example, Zhou Yingbo of China Europe Fund, Zhang Kun of e fund and CAI Songsong of noan fund have expanded the scale of funds managed by them, mainly relying on good performance to attract investors to purchase.

Insiders of a public fund company in South China pointed out that the mutual fund industry is very transparent and its performance is clear at a glance. Some outstanding fund managers have high market appeal and naturally attract a large number of fans to "vote with their feet".

Take Cai Songsong as an example. Cai Songsong has been the fund manager for the first time since February 2019, managing the noan growth hybrid fund, the noan and Xin flexible allocation hybrid funds.

During Cai Songsong's management, the scale of noan Growth Fund increased from 1.3 billion yuan to 16.1 billion yuan, with a yield of 155.31% in the past year, higher than the average increase of 55.10% in the same category. His brilliant performance made Cai Songsong become the fund manager of ten billion level fund in just over a year.

Secondly, the release of new funds in the bull market is an important way for some fund managers to expand their management scale rapidly.

Among the 10 billion level fund managers mentioned above, many fund managers have realized the leap in management scale by relying on the explosive funds issued in the first half of this year, such as Wang Zonghe of Penghua Fund, Hu Xinwei of huitianfu fund, Xie Zhiyu of Xingquan fund, Guo Fei of Schroder of BOCOM, etc.

Take Wang Zonghe as an example. On July 8, 2020, the Penghua ingenuity select mixed fund, which Wang Zonghe plans to be the fund manager, was officially issued, with a total raising scale of 29.691 billion, and the total number of subscription accounts reached 1.833 million, with the subscription confirmation ratio of 21.88%.

With the issuance of this new fund, Wang Zonghe's management scale has exceeded 40 billion yuan.

Judging from the fund scale managed by Wang Zonghe over the years, the largest single old fund is Penghua growth value hybrid a, with a scale of 4.756 billion yuan.

A person from the investment department of a fund company in Shanghai pointed out: "in fact, in the first half of the year, there were frequent fund explosion, not only because of the obvious profit-making effect of the market, but also because the operators of the new fund are star fund managers, who have outstanding performance records." For example, Wang Zonghe has managed Penghua's consumption optimization for nearly 10 years, with a return of 288.2% and an annualized rate of return of 15.28%.

It is worth mentioning that the fund managers should continue to communicate with the fund managers on whether or not the fund management should continue to expand through the fund management.

Third, the outbreak of customer demand. Insiders of a public fund company in South China believe that with the continuous innovation of the yield of risk-free products such as bank financial products, real estate investment income in first tier cities has begun to lag behind the capital market, and there is a lack of other investment channels, including individuals and institutions, which will increase the allocation of equity assets.

From the above analysis, performance driven is the most fundamental reason for the formation of 10 billion level fund managers, and the market price is the trigger factor.

"Most of the fund managers whose active equity management scale can be stabilized at more than 10 billion yuan have rich investment and research experience, have good medium and long-term performance, pay attention to risk control, and have small net worth withdrawal, so they have strong appeal in institutional clients and retail investors." Shanghai a fund company product department personnel such as evaluation.

Where is the capability boundary?

Is the bigger the fund, the better?

Industry insiders said that for funds involved in active management, the larger the fund size is, the better. The management ability of fund managers is bounded, and it is difficult to obtain excess returns if the scale is too large.

First of all, the scale is too large, which is not conducive to fund managers' shareholding.

For example, if the fund manager of a certain fund can't concentrate on the stock market value of a certain fund, the fund's market value may not exceed 10% There are enough subjects with sufficient confidence. "

Secondly, if the scale is too large, it is more difficult for fund managers to adjust their positions.

Insiders of a public fund company in South China said that when the market fluctuates violently and the style changes quickly, the large-scale fund is not as flexible as the fund with moderate size.

However, the scale of funds under active management should not be too small. Fund managers of a fund company in Shanghai pointed out that small-scale funds are flexible in adjusting positions, but if the scale is too small, investors' concentration is too high, and large redemption may affect fund investment.

What is the ideal size of fund management? Industry insiders believe that this is mainly related to the fund manager's personal style, investment strategy and product characteristics.

For example, if the fund manager's style tends to value and prefers blue chips, then the large cap stocks that his research energy can cover are more able to bear the scale of 10 billion yuan; if the fund manager prefers medium and small cap stocks, and the investment proportion is limited by regulations and internal risk control, it is necessary to invest more stocks to carry the scale, and it may be unable to track the coverage effectively.

According to overseas experience, by the end of 2019, among the top 10% (i.e., top 300) mutual funds in the United States, 7 of which have a product size of more than 100 billion US dollars, and 15 products are in the range of US $40 billion to US $100 billion. Among them, the mutual fund "American Funds Growth Fund of Amer", which was established in 1973 A) The scale is more than 200 billion US dollars, and it still achieves a 5-year performance return of 9.88%.

This product is jointly managed by 14 fund managers.

Multi organization tries multi policy management

How to manage ten billion level funds not only tests the management ability of a fund manager, but also tests the comprehensive strength of a fund company.

The main strategy for fund managers of a certain company is to optimize the fund management team of 10 billion yuan through mutual fund management strategy The product layout managed by the fund manager removes those products that do not match their style and expertise, and allows him to focus on the ability circle of his personal strengths.

In fact, since the first half of this year, Zhang Kun, Chen Hao, Xiao Nan of e fund DA and Liu Gesong of GF have employed more fund managers or assistant fund managers in their products.

In addition, the fund manager of a fund company in Shanghai pointed out that if the fund scale is too large and the product investment strategy is difficult to accommodate, it will also control the scale by restricting large amount of subscription.

Insiders of a public fund company in South China said that the management of a 10 billion level fund needs the systematic support of the investment and research team. Only when the company's comprehensive strength is improved can it provide support in terms of intelligence, resources and talents for the management of large-scale funds. Otherwise, the scale of 10 billion level funds will not be sustainable.

Many people in the industry have reminded us that we should pay attention to the strange circle of "good performance in the past caused market attention, and then the scale of funds managed by fund managers soared, but the performance decreased due to too large scale".

For example, Zhou Yingbo, a China Europe Fund, once said frankly in the first report of China Europe era pioneer in 2020: "the scale of funds managed in the first quarter continued to rise, but on the one hand, the market experienced a large fluctuation; on the other hand, our experience and ability to prevent withdrawal in scale were insufficient, resulting in short-term losses for investors who bought at higher positions in the market."

It is reported that China Europe era pioneer fell by 5.22% in the first quarter of 2020, falling short of the benchmark.

Strategic analysts of a fund company in Shanghai stressed that fund companies should put the interests of the holders first. On the one hand, they should fully combine the style of fund managers, capability boundaries and product strategies to keep the funds in a reasonable scale. On the other hand, they need to pay attention to risk control in investment and strive to reduce the withdrawal.

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