Home Business Bank financial management rationally responds to fluctuations in net worth, adjusts performance benchmarks, terminates products early, and improves investment and research capabilities.

Bank financial management rationally responds to fluctuations in net worth, adjusts performance benchmarks, terminates products early, and improves investment and research capabilities.

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Original title: Bank financial management rationally responds to fluctuations in net worth, adjusts performance benchmarks, terminates products early, and improves investment and research capabilities.

On August 10, CMB Wealth Management announced that it will adjust the performance comparison benchmark for the fourth investment cycle of the “Zhao Rui Jinding Seven-Month Fixed-Income Financial Plan No. 1” on August 17, which will be adjusted to 2.80%. to 4.50%. In the first, second, and third investment cycles before this product, the performance comparison benchmarks were 3.85%, 3.65%, and 3.6%, respectively.

Since August, a number of banks have issued announcements on their official websites that they will adjust the performance comparison benchmarks of their wealth management products, and even terminate some products. Why terminate early? Some institutions mentioned in the announcement that “the net value of the product may fluctuate greatly” and “avoid investment losses due to the reduction of management scale”.

Industry insiders believe that this is a rational move by bank wealth management to deal with fluctuations in net worth, and that lowering the performance benchmark will help adjust investors’ income expectations. Shanghai Securities News learned from the survey that in order to control the withdrawal of net worth, bank wealth management companies are also improving their active management capabilities, independent investment capabilities, and risk management capabilities, so as to reduce the impact of market fluctuations on product returns and better protect them. investor rights.

“Earnings not up to scratch”: Downgrading performance benchmarks

“At present, net worth wealth management is all floating, and each opening of a product will adjust the performance comparison benchmark reference value in combination with the current market situation and product structure.” The wealth management manager of China Merchants Bank explained.

China Merchants Wealth Management is just a microcosm of the wealth management market. Recently, Bank of China Wealth Management and other bank wealth management companies lowered the benchmark for product performance comparison. Many people in the banking industry believe that “underperformance” is the main reason. According to Puyi Standard data, 12,380 of the closed-end products due in the first half of 2022 have disclosed their performance benchmarks, and nearly 1,200 products have not reached the benchmark center, accounting for 9.42%.

“The performance comparison benchmark is the way to show the income of net worth wealth management products. It is the annualized estimated income that investors may obtain based on investment experience or the historical performance of products of the same type calculated by the bank.” said a wealth management manager of a large state-owned bank. In fact, the performance comparison benchmark is only for investors’ reference. The actual maturity return of the product may be higher, lower or equal to the return, and the specific result depends on the actual operation.

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“But there are still many investors who misunderstand performance benchmarks as expected returns. Banks lowered their performance benchmarks, further reducing investors’ expectations.” Wang Shiwen, a senior financial planner, believes that the bank’s move is mainly based on the current investment market environment. It is estimated that the A-share market fluctuates greatly due to comprehensive factors, and some bank wealth management products with a risk level of R3 and above have allocation weights in equity assets, resulting in a withdrawal of the net value of the products.

Customer income mainly depends on the investment income of wealth management products. Wang Shiwen said that at the beginning of the establishment of bank wealth management products, debt assets will be used as the underlying safety pad, so the falling interest rate in the money market will inevitably affect the yield of these underlying assets.

Liao Zhiming, chief analyst of the banking industry of China Merchants Securities, said that investment returns are not only related to the trend of the stock market and bond market, but also to the investment strategy of investment managers.

“Since the beginning of this year, the A-share market has fluctuated greatly, while the investment and research capabilities of wealth management companies are relatively weak, and they have not accumulated enough research frameworks and talents.

“Avoid loss of investment”: Early termination of the product

Recently, ABC Wealth Management, CNCB Wealth Management and other bank wealth management companies have terminated the operation of multiple wealth management products in advance.

According to the ABC Wealth Management announcement, the institution plans to terminate the first phase of the “ABC Tongxin Two-Year Opening” value-selected RMB wealth management product in advance on August 24. It is understood that before the adjustment of this product, the planned expiration date is August 26, 2030. Regarding the follow-up arrangements for this product, ABC Wealth Management stated that it will transfer the principal and income (if any) of the wealth management product to the investor’s original account within 2 working days after the product’s early termination date according to the product specification.

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“The recent early termination of a few products is mostly due to problems in the product operation process. Some products are affected by the market, and their net worth fluctuates more, and a few products with poor performance have contracted due to redemption and other factors, which may lead to institutional changes. Early termination of the operation of a few products.” said Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank.

Generally speaking, bank wealth management products will not be terminated due to short-term performance failure, and there is still a chance to reach performance benchmarks before the regular opening day. According to industry insiders, referring to the industry situation, the bank will consider terminating the operation in advance for some products with large fluctuations in net worth, more customer complaints, and more inconsistencies in the bank’s branches.

Affected by “under-achieving performance”, the number of complaints about bank wealth management business is relatively high. Recently, the “Notice on Consumer Complaints in the Banking Industry in the First Quarter of 2022” issued by the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission showed that there were 3,867 complaints related to wealth management business, accounting for 5.1% of the total number of complaints, ranking No. 1 in banking business complaints. 3 digits.

The key to breaking the game: “turn passive into active”

After the net worth transformation, in addition to adjusting performance benchmarks and terminating products early, bank wealth management companies should improve their active management capabilities, especially the level of investment research, so that they can truly respond to net worth fluctuations rationally.

Yang Haiping, a researcher at the Securities and Futures Research Institute of the Central University of Finance and Economics, believes that in order to cope with the performance pressure brought about by market fluctuations, bank wealth management companies can increase the proportion of pure fixed income products in the short term. On this basis, actively promote product types and investment directions. Innovate, use financial technology to strengthen communication management in the whole process of investment.

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“In the long run, with the standardized development of wealth management companies and wealth management business, the product spectrum has become more abundant, and investors’ demand for ‘fixed income +’ and equity products has continued to increase.” Zeng Gang, director of Shanghai Finance and Development Laboratory, said that bank wealth management The company needs to continuously build and improve its investment and research capabilities according to its own business layout.

“The improvement of investment and research capabilities will improve the ability of wealth management companies to respond to market information and dynamics.” Huang Shihui, a researcher at Puyi Standards, said that wealth management companies need to build a professional investment research team, strengthen the integration of investment and research, and build investment and research covering a wide range of assets. Research system and risk control system.

How to strengthen investment research and asset allocation capabilities? The relevant person in charge of Bank of Communications Financial Management said: “First, strengthen communication with investment departments and accelerate the construction of a quantitative investment research system under the framework of major asset allocation; second, attach importance to the role of intelligent investment research, quantitative models and informatization construction. , and continuously strengthen the ability to use intelligent technology to solve problems; the third is to carry out research and development of targeted asset allocation models and investment strategies according to the risk-return characteristics of product differentiation, and to strengthen the transformation of investment research results.”

Shanghai Securities News found in the survey that Ningyin Wealth Management and other bank wealth management companies are also considering the investment and research capabilities and product creation capabilities of public funds through FOF and TOF products, and use the investment research strength of public funds to enhance product competitiveness. “Bank wealth management subsidiaries take advantage of customer resources, and public funds take advantage of investment resources to make the best use of their talents. There will be more room for cooperation in the future.” Zeng Gang said.Return to Sohu, see more


Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.

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