Trillion market big move! A new batch of fund investment advisory pilots have been launched, with Boshi, GF, ICBC Credit Suisse, China Industrial Securities Global… all on the list!These brokers are also qualified
Come out after a thousand calls! In the future, the fund investment advisory business, which is expected to reach trillions in market size, has ushered in the latest progress, and a new batch of institutions have been approved to conduct fund investment advisory business on a trial basis.
Brokers China reporter learned that at least 6 brokers and 6 funds have officially become the new batch of companies approved to conduct fund investment advisory on a pilot basis. Among them, fund companies include: Boshi Fund, China Industrial Securities Global Fund, GF Fund, ICBC Credit Suisse Fund, China Merchants Fund, Bank of Communications Schroder Fund and many other public offerings. 6 brokerages haveIndustrial Securities、China Merchants Securities、Guosen Securities、Orient Securities、CITIC Securities, Essence Securities, etc.
Since the official launch of the pilot investment advisory business for public equity funds at the end of 2019, after more than a year of piloting, the investment advisory business has grown with the growth of investor fund investment demand and the promotion of the market environment. Industry insiders believe that the addition of a new batch of institutions will play a positive role in promoting the formation and diversified development of investment advisory business ecology.
Enhance investors’ sense of happiness and gain
According to industry analysts, referring to the situation in North America, as of the end of 2019, the assets under management of the U.S. Securities and Exchange Commission (SEC) registered investment advisors amounted to approximately USD 83.7 trillion, which corresponds to USD 21.4 trillion in U.S. registered investment companies. In other words, the scope of assets that investment advisors can manage far exceeds that of public funds, and the domestic investment advisory market has broad prospects.
In recent years, Boshi Fund has clearly taken the fund investment advisory business as one of the company’s most important development strategies in the future. “High-quality Gu” brings returns to customers, forming a brand of “trustworthy and trustworthy” asset management institution of Boshi Fund.
In terms of investment team and management capabilities, Boshi Fund has built a scientific and systematic investment management framework around the two main lines of asset allocation and fund optimization. Mai Jing, general manager of the multi-asset department of Boshi Fund, said, “Boshi Fund has a professional investment team and management capabilities, hoping to provide investors with a one-stop solution to the difficulties of timing and base selection, and to help them obtain better long-term returns. And investment experience to enhance their sense of happiness and gain.”
In terms of customer investment experience, Boshi Fund will create a full-process investment advisory companion service system of “pre-investment-investment-post-investment”, and create more value for customers through behavioral guidance. It is reported that Boshi Fund is one of the few fund companies in the industry that has established a “Knowledge Management Center”. The Boshi Knowledge Management Center is specifically responsible for the content production of “Gu”. The interests of investment consultants and clients are consistent, which is convenient for investment consultants to guide investors to be more rational. Make investment decisions carefully.
Regarding this pilot investment advisory business opportunity, Boshi Fund stated that with the company’s efforts, Boshi has made full preparations for investment management, customer service, compliance and risk control, product design, system construction, and operational guarantee. With the interests of investors as the primary goal, we are committed to providing customers with high-quality investment advisory services and profit experience, and promote the process of the mutual fund industry from asset management to wealth management.
Among the new batch of institutions approved to conduct fund investment advisory business on a trial basis, China Industrial Securities Global Fund was evaluated as having its own “investment advisory gene”.
“The core of the investment advisory business is to bridge the gap between the true long-term returns of public equity funds and the true returns of investors, and to enhance the profit experience of investors. The’holder’s interest first’ is precisely what China Industrial Securities Global Fund has always insisted on. “The original intention and practice of the concept.” said Zhuangyuan Fang, general manager of China Industrial Securities Global Fund, “We are willing to spend time polishing every product, every strategy, every service, and insist on the ultimate pursuit of’quality’. We have After 18 years of persistence, this is only the starting point for persistence. To develop investment advisory business, upgrade user investment experience, and carefully manage every amount of money, our original intention remains the same.”
The most important culture and value of China Industrial Securities Global Fund is “responsibility”. Do not blindly issue new products and pursue a boutique strategy; once in the low market, the company used self-purchasing, public development, etc. to prompt opportunities; also when the market was high, it used fund quotas, high-proportion dividends, open letters, etc. to prompt risks. The first initiative to suspend the subscription of its funds. These are all manifestations of practicing the “responsibility” culture.
“The company has always focused on polishing its investment and research capabilities. Whether it is the management level of underlying assets, or the ability of fund research and asset allocation, we have excellent strength. The company’s investment and research team accounts for 41% of the total number of employees, which is higher than the industry average. Among them, the fund selection and asset allocation team has 9 people, with an average working experience of 8 years, covering insurance asset management, overseas investment, quantitative investment and other diverse research backgrounds. It can be called a’high-tech’ team.” China Industrial Securities Global Fund Investment According to Zhang Jimin, the principal of Gu’s business strategy, “China Industrial Securities Global Fund’s fund optimization and asset allocation team has a comprehensive layout in multiple business lines such as public funds, special accounts and fund white-box portfolios, laying a solid foundation for the development of investment advisory business. .”
The focus of fund investment advisory business is not only on “investing”, but also on “guiding.” The research statistics of the American Pioneer Group on investment advisory services show that investors believe that accepting “Behavior Conduct” has brought the greatest value increase. In this sense, the fund investment advisory business has the characteristics of continuous investment and education activities.
“For us, advisory services and investment capabilities are equally important. How to deeply understand the needs of investors and create a closed-loop service that runs through the entire life cycle of investors based on customer needs is an important starting point for the development of investment advisory business.” Huang Dingjun, head of investment advisory business operations of the Securities Global Fund, said, “In-depth communication and continuous company with investors will help guide customers to make long-term and rational investment, and avoid blind choices, frequent redemptions, short-term holdings and other behaviors. According to the company The investor education experience accumulated for a long time in the past, and the rapid development of Internet fund operation practices in recent years, has established a systematic investment advisory service framework, and a service operation system covering pre/middle/post-investment, in-depth solutions to investor services at all stages Demand, I believe it can help investors invest more rationally and choose a combination strategy that more closely matches their investment goals.”
“As an asset management institution, we adhere to our investment capabilities and asset allocation capabilities as the cornerstones. At the same time, we fully integrate all aspects of the company’s resources to do a good job of service based on our past investment and education and customer companionship experience. In the entire investment and advisory business chain, Technology empowerment is essential, and it runs through all aspects of customer identification, account system construction, investment strategy model design, risk control management, operation services, etc.” Zhan Hongfei, deputy general manager and chief information officer of China Industrial Securities Global Fund, believes that “digital wave Fundamental changes have taken place in investors’ trading, consulting, and information acquisition habits. On the one hand, we must use digitalization to enhance business resilience and upgrade customer experience. On the other hand, we must also use digital power to empower teams and improve middle and back-office processes. Achieve efficient operations.”
Multi-party competition on the same stage, fund investment advisors continue to expand
Affected by irrational investment behaviors such as chasing ups and downs, channel redemption and other irrational investment behaviors, the “curse” that funds make money but the foundations do not make money is widespread, and fund investment advisors have emerged.
On October 24, 2019, the China Securities Regulatory Commission issued a “Notice on Doing a Good Job in the Pilot Work of Publicly Raised Securities Investment Fund Investment Advisory Business”, which opened the fund sales from the sales-oriented “seller era” to the benefit of customers. The transformation of the “buyer era” as the center.
On October 25, 2019, the first batch of 5 fund investment advisory pilots were approved, namely E Fund, China Southern Fund, China Fortune under China Asset Management, Harvest Fortune under Harvest Fund, and China Europe Wealth under China Europe Fund, all of which are funds The company or its subsidiaries.
Subsequently, in December 2019, the fund investment advisory pilot expanded its capacity to third-party independent sales agencies. Three independent sales agencies including Ant Fund, Teng’an Fund, and Yingmi Fund obtained investment advisory qualifications and quickly started their business.
In February 2020, Fund Investment Advisor once again opened its doors to banks, brokerages and other financial institutions.China Merchants Bank、ICBC, Galaxy Securities,Guotai JunanHead institutions such as securities were approved.
Just in March of this year, Vanguard, one of the world’s largest public equity fund managers, also announced that it would suspend the establishment of a fund management company in China and focus on joint venture companies that have obtained the pilot qualification for fund investment advisory.
This means that fund investment advisory has once again ushered in the entry of foreign giants. In addition, the Bank Securities Foundation and third-party sales agencies are competing on the same stage. Fund investment advisory has become another blue ocean for major financial institutions to compete for.
Opportunities and challenges coexist
Unlike traditional seller sales, buyer investment advisory needs to start from the real interests of investors, and truly help investors make money. This is not an easy task.
Yingmi Fund CEO Xiao Wen believes that investment is anti-human. The biggest difficulty in investment advisory lies in how to help clients improve their understanding of investment, so as to change their irrational behavior in investment. There is no trick to this process. In other words, it is necessary to carry out large-scale teaching, or “preaching.”
The so-called “evangelism” is to truly embody investment principles, logic, and ideas in every exchange and interaction with ordinary investors. In the process of building trust, investors believe in it and change their investment behavior. This is investment. Gu’s true meaning. Therefore, Xiao Wen believes that investment advisory business is not scale or product, but people and trust. But the establishment of trust requires a long process. It cannot be achieved overnight by issuing red envelopes and advertising. The best way to trust is by word of mouth, which is to use a set of correct investment concepts to gradually reach more customers through refined operations.
Pioneer Leading Investment Advisor believes that in the future, robo-advisors will play an increasingly important role in meeting customer investment needs and guiding customers’ healthy investment concepts. From the experience of developed countries, investment advisory is also an important part of guiding household wealth management towards long-term decentralized investment, and it has played a key role in promoting the ecological reshaping of the asset management industry and the transformation of the capital market structure.
Of course, as a major emerging business in the domestic asset management industry, fund investment advisors will inevitably face some challenges. In this regard, Liu Mingjun, Chairman of Teng’an Fund, once concluded:
First of all, the market is immature and the fund volatility is too large. For the institution, there is a balance of short-term, long-term, customer, and self-interest. The original sales-oriented approach obviously takes into account short-term and self-interest. It is possible to consider investment It will not be so long-term, and it will cause investors to misunderstand the fund and greatly deviate from his earnings expectations. It will take time for investors to fully understand and recognize the fund;
Secondly, the short-term concern is human nature. This irrationality is difficult to completely change. Whether it is a single fund, FoF, or even investment advisory portfolios, investors will face the short-sightedness of investors, especially the problem of chasing ups and downs; investors are right. It takes time for organizations to build trust. Only with trust can more products and services be made;
Finally, the advantages of the investment advisory business itself also need time to verify. Investment advisory is asset allocation. If an investor has no trust in the short term and has no long-term investment habits, he is easily affected by market fluctuations or others. This means that the advantages of the investment advisory business are difficult to be verified by investors.
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