After a lapse of two months, the total size of public funds has returned to more than 27 trillion yuan.
On the evening of May 25, the Asset Management Association of China (hereinafter referred to as the “China Foundation Association”) released the public offering fund market data for April. The data shows that the total net asset value of public funds reached 27,294.329 billion yuan, a new high for the year, and it is only one step away from the historical high of 27,294.427 billion yuan at the end of August last year.
Industry insiders interviewed said that the total size of public funds has returned to a relatively high position in history, thanks to the growth in the size of monetary funds and bond funds. At the same time, the annual performance of the public offering fund market this year is worth looking forward to. In the future, public offering funds will gradually return to the mean value of the stable curve of high-quality development.
Total size of public funds
Return to a relatively high position in history
According to data from the China Foundation Association, as of the end of April 2023, there were 143 fund management companies in my country. Among them, there are 47 foreign-invested fund management companies (including Sino-foreign joint ventures and wholly foreign-owned), and 96 domestic fund management companies. There are 12 securities companies or asset management subsidiaries of securities companies and 1 insurance asset management company that have obtained public offering fund management qualifications. The net asset value of public funds managed by the above institutions totaled 27.29 trillion yuan, an increase of 616.377 billion yuan from the end of March, and a month-on-month increase of 2.31%. Among them, the total net asset value of closed-end funds was 3.67 trillion yuan, and the total net asset value of open-end funds was 23.62 trillion yuan.
From the perspective of the specific types of open-end funds, monetary funds are the product type with the largest increase in scale and share. As of the end of April, the share of monetary funds was 11.47 trillion, an increase of 524.1 billion from the end of March; the net asset value was 11.48 trillion yuan, an increase of 523.079 billion from the end of March. In addition, bond funds continued to “recover blood” for three consecutive months during the year. As of the end of April, the bond fund share was 3.86 trillion, an increase of 168.081 billion from the end of March; the net asset value was 4.37 trillion yuan, an increase from the end of March. 204.187 billion yuan.
Regarding the return of the total scale of public funds to a relatively high position in history, a relevant person from Zhongrong Fund Management Co., Ltd. analyzed to a reporter from the Securities Daily that the growth in the scale of monetary funds and bond funds was the main reason. In April, there was another round of turmoil in the A-share market, and the market’s risk aversion increased, causing some funds to flow from stock funds or mixed funds to money funds and bond funds with lower risks.
Relevant persons from Yongying Fund Management Co., Ltd. (hereinafter referred to as “Yingying Fund”) believe that the scale of public offering funds has returned to the 27 trillion yuan mark, mainly due to the good performance of public offering funds since the beginning of the year and the risk of residents on risky assets. The preference has been restored, and the reduction of deposit interest rate has led to the transfer of excess savings of residents.
In the view of the relevant person in charge of Pengyang Fund Management Co., Ltd.: “First of all, since the beginning of this year, the momentum of economic growth has recovered moderately, the risk appetite of residents’ financial management has slowly recovered, the monetary and financial environment has remained stable, the bond market has strengthened, and the stock market has fluctuated. With the restoration of economic and market confidence, the fund issuance sentiment has picked up marginally. Secondly, due to the demand for bond allocation by banks and other institutional investors at the beginning of the year, the restoration of the bank’s wealth management net worth has led to the stabilization of the wealth management scale and the allocation of public funds. The above factors have driven the growth of bond funds. Finally, the risk-free rate of return of financial products such as bank deposit interest rate and insurance product rate of return has declined to varying degrees this year, and the investment performance-price ratio of public offering fund products has increased accordingly.”
Public Fund Market
Year-round performance is worth looking forward to
Looking ahead, some interviewed institutions believe that the annual performance of the public fund market is worth looking forward to.
“Overall, I am optimistic about the overall performance and development of public offering funds this year.” According to the analysis of relevant personnel of Yongying Fund, first of all, they are optimistic about the overall trend of A shares; In the case of losses in two years, the follow-up may be relatively optimistic; in addition, the attractiveness of equity assets is expected to increase again, helping the development of the fund industry. As the domestic economic growth rate continues to pick up this year, the advantages of equity assets are expected to gradually emerge. With the gradual improvement of residents’ income and confidence, residents’ investment in equity assets is also expected to gradually increase.
In an interview with a reporter from Securities Daily, Xing Yao, fund manager of the multi-asset department of CICC Fund Management Co., Ltd., believes that the economy as a whole has shown a recovery trend this year, and short-term economic data fluctuations will not change the overall positive trend. Coupled with the improvement of residents’ income expectations, investment demand It is expected to gradually recover, and the performance of the public fund market is worth looking forward to.
Talking about the future development of the public offering fund industry, the relevant person in charge of Guotai Fund Management Co., Ltd. told the “Securities Daily” reporter: “As China’s economy transforms from high-speed growth to high-quality growth, the development goal of public offering funds should also change from high returns to Transformation of high-quality returns. In the past ten years, with the expansion of the capital market, the scale of public funds has achieved leapfrog growth. In the future, the growth rate of the industry will transition from “big opening and closing” to “small water and long flow”, and finally to high-quality development. curve mean reversion.”
Liang Liang, general manager of Product R&D Center of Lion Fund Management Co., Ltd., told the reporter of Securities Daily that the future development of the public offering industry can focus on system construction and product development. On the one hand, it will continue to develop in the construction of a platform-based investment research system, the diversified development of underlying assets and strategies, the creation of a customer-centric product management system, and the embrace of artificial intelligence and digital transformation. On the other hand, product innovation needs to keep up with the national development strategy; by enriching the product lineage, the corresponding investment strategy and the whole process integration of investment management can be driven, and the active management ability can be improved in an all-round way; to meet the needs of investors to diversify investment and diversify risks, differentiated design Products at different positions on the risk-return curve.
(Editor in charge: Zhu He)
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