Several funds too small to be liquidated Fund managers face the “no basis to manage” situation


Under the background of “internal volume” in the public offering industry, many fund managers are facing the risk of “unemployment”.The reporter noted that as a result of the frequent occurrence of fund liquidation phenomenon in small and medium-sized fund companies, many fund managers will face the embarrassment of “no base can be managed”.Fund managers face “unemployed” north letter Switzerland abundant fund company announced on February 23, according to the fund, the fund contract and other relevant regulations, north letter r forword abundance flexible allocation fund has triggered the fund contract termination, north letter Switzerland abundant fund management co., LTD. Shall be terminated after the above termination situations fund contract and fulfill its fund liquidation procedures in accordance with the law.The final operational date of the Fund is February 22, 2022, and it will enter liquidation on February 23, 2022.After the above related fund products entered the liquidation process, it also means that the fund manager Lupin entered the “unemployed” state.So far, Northern Credit Suisse has not hired Lupin as a fund manager for other publicly offered products.Lupin, a former deputy general manager of China Merchants Securities’ RESEARCH and development department, joined Beijing Credit Suisse Fund in April 2020 and began working as a fund manager for two funds at Beijing Credit Suisse fund, according to the prospectus.The first public fund product lupin managed was the North Credit Suisse Fenxing Flexible Allocation Fund, where he became fund manager on October 12, 2021. Three months later, the fund was wound up on January 18, 2022.At this time, the only fund lupin managed was Beixinrui Fenghuafeng Flexible Allocation Fund. Unexpectedly, the fund contract was terminated due to its too small scale.Within a short period of a month, the liquidation of the two fund products has been terminated, which means that the fund manager Lupin actually entered the “unemployed” state.Remarkably, Lupin has had a good track record as a fund manager.He managed the North Credit Rui Fengxing Rui flexible allocation fund, from the beginning of the office to the end of the fund liquidation, a total of 98 days in office, during the cumulative yield of 5.28%.Lupin’s BCR Feng Hua Feng Flexible Allocation fund, which he manages, has a total of 119 days and a cumulative return of 31.98%.In fact, there are plenty of fund managers who risk losing their jobs because of size rather than performance.On February 23, Deppon Fund Company issued a notice reminding that the net asset value of deppon quantitative preferred equity securities investment fund has been less than 50 million yuan for 40 consecutive working days, which may trigger the termination of the fund contract.Announcement stressed that according to the regulation of the fund contract, the fund contract comes into force, a fund share holder for 60 consecutive days number less than 200 people or fund net asset value is lower than 50 million yuan, fund manager shall, in accordance with the fund contract in the process of liquidation and termination of the contract, without the need for a fund share holder meeting.It is reported that the fund’s net asset value has been below 50 million yuan for 40 consecutive working days.Deppon Quantitative Preferred Equity Fund is managed by Wu Zhipeng. In mid-August last year, another fund he managed, Deppon Quantitative Preferred Equity Fund, was too small to trigger the termination of the fund contract.In addition, Wu zhipeng also manages several products, including Deppon Minyu Enterprise, Deppon Quantitative Hedge and Deppon Shanghai G60 Composite Enhancement Fund. Although he manages many fund products, they are all small in size.In fact, Deppon Minyu Enterprise Quantitative In April last year also issued a possible trigger of termination of fund contracts, meaning that wu Zhipeng currently in the management of a number of funds there is a potential liquidation of the termination.Picc asset’s previous wave of fund manager departures has also been linked to the liquidation of some of its funds.Reporter noted that the company has left a fund manager Liang Ting Wei Xuan, zhang wei, and so on, are in danger add 6 months open bond fund on a regular basis, preserve termbray 9 months open fund, helped xin enjoy short debt bond fund of fund managers, the three funds have been liquidated termination, such as zhang wei in the management of the danger of xin enjoy after the termination of short-term debt fund, only had half a month notice to leave.At present, the enrolling effect of the public offering industry makes the phenomenon of fund liquidation termination frequently, and the turnover tide of fund managers is also closely related to fund liquidation.Head fund companies are also affected by the risk of “unemployment” of fund managers, which not only depends on whether the fund performance matches the market, but also depends on the continuous flow of capital to the core products of the head fund after the public offering industry enters the internal volume state, which makes it difficult for many small and medium-sized fund companies to do large-scale fund products.But the scale is too small and this kind of fund products may have further liquidation risk, thus bringing about the possibility of brain drain.Wind data show that about 20 funds have announced the closure of liquidations so far, and in 2021, the number of fund liquidations will reach 249, a 40% increase from 2020 and a new high in nearly three years.On a related note, statistics also show a record number of fund manager departures in 2021, with more than 300 leaving.Departing fund managers and liquidated funds are heavily concentrated in small and medium public offerings.However, under the roll-in effect, large public offering products also began to appear similar situation, in the release of fund products may trigger the termination of the contract of the fund company, the reporter noticed that there are also some large head fund company products.On February 22 and 23, five super-large public fund companies issued risk warnings that their fund products may be too small to trigger the termination of fund contracts.A large fund in southern China announced on February 23 that the contract effective date of China Securities Internet Index fund is December 1, 2020, as of February 21, 2022, the net asset value of its fund has been less than 100 million yuan for 20 consecutive working days.If by the end of March 7, 2022, the net asset value of the Fund is less than RMB 100 million for 30 consecutive working days, the termination situation stipulated in the Fund Contract will be triggered, the Fund Contract shall be terminated, and the Fund Manager shall liquidate the Fund in accordance with relevant laws and regulations, the Fund Contract and other provisions.Another large fund also disclosed that its home appliance ETF fund will enter liquidation procedures in accordance with the Fund Contract if the net asset value of the fund is less than 50 million yuan for 50 consecutive working days by March 22, 2022.Industry insiders believe that the disclosure of the related products of the head public offering giant may lead to the termination of the fund contract due to too small a scale, which is enough to explain the survival state of the small and medium public offering fund, especially the universal existence of fund liquidation risk.However, for the public offering giant head, one or two possible liquidation risk fund, will not affect the related fund manager career space, such fund company’s product line rich head, existing old funds and momentum product quantity, strong enough to absorb resources platform, a fund manager in other products.(An Zhongwen) Source: Securities Times

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