While trading continues to be activeMadamedestinymegawayspragmaticDebt redemption is becoming more and more frequent. From the point of view of May alone, as of May 24, fund companies have improved their net worth in response to debt redemptions.MadamedestinymegawayspragmaticThe number of announcements reached 25.
Excluding some small-scale "fake redemptions" (because the scale is too small, even if the redemption of these funds touches the 10% warning line, the absolute redemption share and market impact are still small, so they are not included in the list of key concerns). Since May, many debt bases that trigger redemptions have reached billions, and even debt bases with a size of more than 6 billion yuan have been redeemed on the 12th day after their establishment. And the debt base was redeemed the first time it was closed.
Most of these large foreclosures are the behavior of institutional investors, reflecting the existence of a high proportion of single share holdings in related funds. However, this is not to say that the performance of the redeemed debt base is poor, on the contrary, the absolute and relative returns of individual funds are more significant. The analysis points out that this may be due to institutional investors' demands such as asset allocation adjustment or internal assessment. It is necessary to prevent the liquidity risk caused by the large-scale redemption of the fund, as well as the risk of scale decline and even liquidation. All this is likely to have an impact on individual investors with a dispersed proportion of holdings.
6.2 billion debt base redeemed
According to the relevant regulations, fund redemption generally refers to a single open day fund net redemption application for more than 10% of the total share of the previous day. Because of the proportion regulations, there will be some funds due to their own small size of the absolute number of redemptions is not high. In fact, the market is concerned about its own fund products of a certain scale, with obvious loss of share and scale after more than 10% redemption.
According to the announcement of the Guoshou Security Fund on May 24, the Guoshou Security Anyu Pure debt Fund was redeemed on May 23, and the net value accuracy of the share was improved on May 23. The Guoshou Security Anyu Pure debt Fund was established in November 2017 with a scale of 30.Madamedestinymegawayspragmatic.1 billion yuan, only two households can effectively subscribe. By the end of the first quarter of 2024, the size of the fund was 30.Madamedestinymegawayspragmatic20 billion yuan, with a share of 2.948 billion. Based on this calculation, the redemption share of the fund should be at least more than 294.8 million, with a redemption scale of more than 300 million yuan.
Compared with the Guoshou Baoan Anyu pure debt fund, the redemption of Morgan Ruixin interest rate debt base by holders is larger and more urgent. Morgan Ruixin interest rate debt base was just established on May 10 this year, with a size of up to 6.23 billion yuan, but according to the announcement of the Morgan Fund on May 24, the fund was redeemed on May 22. This means that within less than half a month after the establishment of the fund, there have been redemptions of no less than 623 million yuan.
In addition, Hongta Red soil Shengxing, which was redeemed on May 21 this year, has set its debt base A share for 39 months, which is also a sizeable fund. According to the first quarterly report of the fund, the A share of the fund was 2.154 billion yuan by the end of the first quarter. It is worth mentioning that the fund is a debt base with a closed period of up to 39 months. Calculated on the date of establishment in February 2021, it means that the fund was redeemed immediately after the opening of the first closure period.
In addition, Shanghai Silver Huixinli debt Base, which was redeemed on May 16 this year, is a fund with a scale of up to 5.211 billion yuan. When the fund was established in September 2022, it was only 201 million yuan. According to flush iFinD statistics, similar to the above redemption cases since May this year, but also occurred in China and Canada enjoy pure debt funds and other products.
In addition, since May, Guolian Hengtong pure debt fund C share, Hui'an quantitative optimal C share and other funds have issued redemption announcements, but the size of these funds is generally less than 20 million yuan, belonging to mini funds or new shares that have just been established. it doesn't belong to redemption in the real sense.
Redemption motives are varied, not necessarily due to poor performance.
According to the follow-up observation of Chinese reporters from brokerages, the vast majority of fund redemptions have appeared in bond funds in the past two years. A public offering market personage told a Chinese reporter at a brokerage that debt redemptions are basically made by institutional investors, which are more frequent in the context of increased volatility in the bond market in recent years.
For example, institutional investors can basically be seen in the above-mentioned full redemption debt base, and more than 90% of individual debt bases are held by single institutional investors. For example, to set up a Morgan Ruixin interest rate debt base with a scale of more than 6 billion yuan, the number of valid subscribers is only 309. In addition, the Guoshou security Anyu pure debt fund reported in the first quarter of this year that 98.05 per cent of the fund's 2.948 billion share was held by an institutional investor. In addition, by the end of the first quarter of this year, Hongta Hongtu Shengxing held 23.25% and 46.50 shares of the debt base in 39 months, respectively, held by an institutional investor, and the single holding ratio was also too high.
However, judging from the past performance, the performance of these funds is impressive. For example, by the end of the first quarter of this year, the returns of the Guoshou Security Anyu Pure debt Fund in the past year, the past three years, the past five years and since its establishment were 4.33%, 12.49%, 19.59% and 32.59%, respectively, and excess returns were made at each stage. In terms of Shanghai Bank Huixinli debt base, the yields in the past six months, the past year and since its establishment were 2.53%, 4.26% and 4.99% respectively, and the excess returns after smoothing out the benchmark earnings were 0.41%, 0.35%, 1.11% and 2.47%, respectively.
"the motivation for institutions to redeem their debt base is diverse, not necessarily because of poor performance, but also because of their own demands such as asset allocation adjustment or internal capital assessment. For example, for some fixed debt bases with a closed period of up to two years or even three years, the funds inside the closed period have basically reached the allocation cycle, so they will choose to redeem and redeploy. " A person in the market analyzed to a Chinese reporter of a securities firm that, generally speaking, when the share held by a single holder exceeds 20%, the probability of redemption will be higher. If it is a customized product, it will generally communicate with the fund company before redemption.
Attention should be paid to protecting the interests of individual investors
From the overall data statistics, in the case of fund companies continue to increase the layout of bond products, the phenomenon of large-scale debt redemption is not uncommon. Although the redemptions of some funds do not constitute redemptions, the overall proportion of redemption shares is still not low.
According to statistics from Straight Flush iFinD, in the first quarter of this year, a total of 241 debt-based net redemption shares exceeded 1 billion, of which 7 products had a net redemption share of more than 5 billion, which were respectively China Life Insurance China Debt 1-3 years National Development Debt Index A (8.479 billion shares), Hua 'an China Securities Interbank Deposits Fund (7.194 billion shares), China Merchants Tianxing 6-month fixed bonds (7.025 billion shares), China Merchants Anhua Bonds A (6.186 billion shares), Boshi China Debt 3-5 years China Development Bank A (6.024 billion shares), Xingquan Xiangtai fixed bonds (5.682 billion shares), and Bank of Communications Fengrun Income Bonds C (5.287 billion shares).
In terms of proportion, straight flush iFinD shows that compared with the total shares at the end of 2023, there were 473 funds with net redemption ratios exceeding 50% in the first quarter of this year, of which 124 funds accounted for more than 90%. For the seven funds with net redemption shares of more than 5 billion, the net redemption ratios were 54.22%, 76.53%, 98.43%, 26.52%, 49.75%, 58.51%, and 75.67%, respectively.
"Since the second half of 2022, the bond market has undergone major adjustments and a 'debt bull' market that has continued to strengthen, which has greatly increased the attention of the debt-base, redemption funds have continued to be active, and large-scale redemption behavior seems to be gradually normalized. However, it should also be noted that not all of these funds are institutional customized products, and a considerable number of individual investors have a certain proportion. The shares held by these individual investors are scattered and do not constitute an obvious say. It is necessary to prevent liquidity risks caused by large-scale redemptions of funds, as well as risks of scale decline and even liquidation." The above-mentioned market person said. Judging from the past, when individual small-scale funds were redeemed, there had been huge fluctuations in net value, which would have a "confusing" effect on investors.
However, if the perspective is broadened from structural changes to total changes, large-scale debt-based redemption on a case-by-case basis does not seem to affect the overall development of the debt-based business. In fact, the fixed-income public offering products in which bond funds are located are an important starting point for various public offerings to continue to develop their business against the background of a poor equity market.
According to the latest data released by the China Infrastructure Association, the net asset value of public funds as of the end of April 2024 totaled 30.78 trillion yuan, entering the 30 trillion yuan mark for the first time in history. Among them, the scale of the debt base increased from 5.68 trillion yuan to 6.14 trillion yuan in April, a month-on-month increase of 8.19%, once again contributing to the growth of the entire industry. The brokerage research report pointed out that the decline in the availability of financial management for "high-interest" deposits, non-standard and other assets may have to passively increase the proportion of bonds allocation, especially short-term bonds. The allocation pressure of financial management will also be transferred to commodity-based and short-term bonds. Debt funds are transmitted, bringing about allocation needs in the short term.