"Public Fund Managers Are Privately Managed" Release Fund Managers Are Facing A Dilemma.

Recently, the China Fund Industry Association issued the "fund manager as a part-time private asset management plan investment manager working guidelines (Trial)" (hereinafter referred to as "guidelines"). According to the guidelines, eligible public fund managers can be part-time investment managers of private asset management plans (hereinafter referred to as "investment managers" or "account fund managers").

Prior to this, according to regulations, public fund managers should not be concurrent investment managers.

The industry believes that the introduction of the guidelines will have a profound impact on the fund's organizational structure, investment system, personnel management, compliance control and so on.

Twenty-first Century economic report reporter learned that some fund companies have begun to act, but some fund companies are still waiting.

"This rule has now begun to push ahead, and some tenders have begun to consider the participation of public fund managers." In April 15th, a large public fund manager said.

"Our company has recently discussed this matter, but it has not really moved. Because there are still some unclear points in the guideline rules, we need further explanation from the regulatory authorities, otherwise we will not be able to operate at the moment. A Shanghai fund company introduced.

"The provision is loosening up for fund managers, but at present, our fund managers and public offerings are still separate, and there is no intention to concurrently at the moment, because our accounts mainly quantify the absolute revenue products of hedging, which are different from the relative return products of public offerings and can not be concurrently." A Shenzhen fund company official said.

The rules have changed.

"As a public fund company, we welcome the new regulation of fund managers as part-time fund managers, because in fact, customers have always had such a demand." A fund industry source said. "Because the performance of private fund managers is not public and their fame is not large, some large investment clients ask whether they can find star fund managers to be their special account product fund managers. But before the regulations were not released, fund companies could not take up such businesses.

The guidelines clearly stipulate that the public fund managers who meet the requirements can be part of the private equity management plan investment manager. The specific conditions include 5 years' experience in equity fund investment, 3 years' administrative penalty, and no more than 10 management products.

However, the rules are good and the operation is not easy. Many fund companies are still watching.

"Small fund companies are worried that fund managers as investment managers need" 5 years equity fund investment experience ", big fund companies worry that" the number of product management does not exceed 10. " Fund company Chen Jing (a pseudonym) said.

According to the guidelines, there are no more than 10 public funds and private asset management schemes managed by the same fund manager in principle (except those that are invested entirely in proportion to the relevant index).

Chen Jing explained that it seems that the new guidelines will bring great changes to the industry, but in fact, most star fund managers manage more than one public offering fund. If only 10 of them are restricted, there will be very few products that can be managed simultaneously. But for fund companies, it is necessary to consider whether it is cost-effective for star fund managers to hang on to public offerings, or let him hang on to their accounts.

"Fund companies have to calculate an account: the scale of a single household product is often only 300 million -5 billion, or even tens of millions, while star fund managers issue billions of dollars in public offering. It is not always cost-effective for star fund managers to manage special accounts. Chen Jing said.

Choice of fund managers

Fund companies need to settle accounts. So, for public fund managers, are they willing to act as investment fund managers?

"Whether the managers of public funds are willing to look at their wishes and abilities are not good enough to generalize." A senior fund manager told reporters.

"If it is a relative income account, there is little difference from the existing public offering. The existing strategy can be duplicated, and it will be relatively easy. If it is absolute income, it will be more difficult." The fund manager said.

The same view was expressed by another fund man. Public offering funds and special account funds are very different. Most of the public funds pursue relative returns, while the private funds are like private funds, most of which pursue absolute returns.

"In practice, it is difficult for us to have a fund manager who is also good at absolute return and relative income investment style in the long run, according to our observation."

For example, the fund often stipulates in the contract, for example, if the account fund falls more than 15%, it will be forced to liquidate or withdraw funds.

Public offering is another style. On the first day after the Spring Festival this year, the stock index fell 7.73%. In addition, the market plunged in March, and the public offering fund dropped by more than 10%.

It is often difficult for public accounts to accept the investment style of public funds. "Our account customers, such as trust clients, have higher risk appetite and want higher returns, which can withstand larger withdrawal. But judging from the proportion of our company's products, these customers are few, accounting for less than 20%. "

In addition to different styles, fund managers are also different in earning mechanisms for public offerings and special accounts.

"The main purpose of a special account is to extract performance rewards. The public offering is mainly a management fee. The benefits are not comparable. After all, the incentive mode is different, but if both sides do it, it should earn more than just doing it." A fund industry insider in Shenzhen said.

However, there are also fund holders who say that the accounts are often deduct according to the contract, for example, more than 8% of the profits.

A fund company's investment director clearly stated that he did not want to be a sole fund manager. The reason is that the company will be more sensitive on the one hand; on the other hand, "the special account has to delay the revenue, so there will be no special incentive".

According to the guideline, the fund managers who have been in charge for more than 5 years will undergo a long period of assessment and pay deferred, that is, no less than 40% of the income will be deferred for at least three years. It is worth noting that the deferred income of part-time personnel is not limited to the part of investment manager, but is the overall income of fund managers and investment managers.

This rule dispelled the idea of many public fund managers as part-time fund managers.

However, some public fund managers are interested in part-time fund managers. A fund industry insider said that some unnamed public fund managers would be more willing to be part time fund managers if their funds were relatively low. (Editor: Wu Yan Ling)

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