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Original title: From 0 to 18 trillion yuan of public funds, the right way forward
Since 1998, the scale of China’s public funds industry has achieved vigorous development from 0 to 18 trillion yuan. As pioneers of value investing in the capital market, public funds have achieved significant preservation of value and appreciation of wealth for most citizens through long-term mining of corporate value. In the context of continued liberalization of pension investment demand, the public funds industry will adhere to the concept of long-term investment and value investment, and provide diversified solutions for pension investment needs with innovative products and returns. stable.
Long-term investing and value investing intern
Statistics show that, as of the end of October 2020, there were 131 fund management companies in China, another 14 public fund management institutions, and 7682 public fund management institutions, with a total net asset value of 18.31 trillion yuan, an increase of 23.99% from the end of 2019. Among them, the share of equity funds increased from 21.59% at the end of 2019 to 30.70%. From 0 to 18 trillion yuan, public funds have demonstrated through practical actions that long-term investing and value investing are the right way to help maintain and increase the wealth of Chinese residents.
According to Wang Dexiao, CEO of Hongde Funds, taking a career path is the “right path” for public offering funds. He pointed out that as a professional institutional investor, public funds have generated sustainable, effective, safe and reliable returns for holders in the process of accompanying the growth of outstanding and shared companies, helping residents to maintain and increase their equity.
The E Fund said that, on the one hand, public funds, as discoverers and diggers of corporate value, build links and bridges between fund holders and companies. They will direct more funds to high-quality industries and companies that are in line with the direction of structural reforms on the supply side. On the other hand, as practitioners of long-term investment and value investing, public equity funds guide the market to focus on fundamental research, pay attention to the quality of listed companies and industries, and invest with concepts. long-term, which has produced a demonstration effect on the capital market and played The role of the capital market stabilizer has finally achieved the purpose of serving the real economy and driving the transformation and improvement of the real industry. At the same time, it guides the market to pay more attention to fundamental research and the quality of listed companies, plays the role of capital market stabilizer, and finally achieves the goal of serving the real economy and drive the transformation and improvement of the real industry.
Invesco Great Wall Fund stated that in the development process, public funds should first put their professional investment capabilities to use, return to the investment source and strive to obtain rich and stable returns for investors, and promote preservation and appreciation of residents’ wealth, thus promoting the development of the consumer market. , To help the real economy; second, through value investment and long-term investment, public funds use their own professional advantages to do a good job in discovering value, guide the A-share market to optimize the business environment, avoid short-term, blind and speculative trading, and promote the financial market. Stable development provides a secure and stable funding environment for the real economy; finally, the growing public offering funds will help listed companies grow together, improve the quality of listed companies and promote the development of the real economy.
As a major institutional investor in the capital market, public funds have injected long-term stable funds for the development of the real economy. Statistics show that by the end of September 2020, public funds have invested 4.16 trillion yuan in stocks and 8.56 trillion yuan in bonds. Between them, the A stock market value is 3.87 trillion yuan, accounting for 6.75% of the total market value of the two cities, representing a substantial increase. In order to increase the proportion of direct financing, contribute to capital market transformation and economic development, and assist structural reforms on the supply side.
Highlights of the inclusive wealth creation effect
Wang Dexiao said that the “funds” that fly to the homes of ordinary people take on the important mission of transforming the wealth management of Chinese residents.
Statistics from the Galaxy Securities Fund Research Center show that, as of the end of the third quarter of 2020, public funds have distributed more than 3 trillion yuan in dividends to holders. Over the past 15 years, the average annualized rate of return during the index of return for common equity funds was 15.62%, and the annualized rate of return during the index of return for common bond funds was 15.62%. 6.66%, which has generated a considerable return for investors who rely on public funds for a long time.
“Reliable income must come from the value creation of excellent companies. This year, under enormous pressure from the domestic and foreign environment, a group of companies representing China’s strength performed well. They faced risks, actively innovated and opened new ones. international markets, “said Wang Dexiao. With the continuous improvement of various systems in the Chinese capital market and the continuous cultivation of an open and transparent market environment, with the joint efforts and promotion of the entire asset management industry, the concepts of long-term investment e investment value are being verified by the A-share market.
Invesco Great Wall Fund stated that the word “inclusive” means responsibility. Yu Guang, director of equity investment at Invesco Great Wall, once said that every fund raised by a public fund is behind the salaries of tens of millions of holders of funds for months and years.Common peopleHard money. Faced with such an entrustment, public funds must feel “cautious, walk on thin ice, diligent and responsible”, and live up to the confidence and support of investors.
Continue helping investment in pensions
As a conventional value investor, public funds play an important role in the field of pension investing.
E Fund stated that since the birth of the first rated and regulated investment fund in securities, public funds have met the needs of ordinary people for investment and financial management and investment in residents’ pensions under a low threshold , diversification and standardized operation, thus promoting inclusive finance. China’s development has provided ordinary people with tangible investment convenience and return on investment.
Statistics from China Securities Investment Fund Industry Association show that, as of the end of the third quarter of 2020, fund management companies have been entrusted with managing social security funds, basic pensions, corporate annuities and occupational pensions and other pensions totaling 3.02 trillion yuan, with a strong investment return. , Help people support the elderly.
Invesco Great Wall Fund pointed out that in the context of the growing capital market situation, it has become the consensus of the regulatory authorities to direct medium and long-term funds in the market. Among them, public funds, which focus on improving investment management capacity, play an important role in the field of pension investment.
“With the deepening national aging and the growing demand for pension investment, target pension funds have also become an important development direction for public funds. Enhance the third pillar of pension funds has also become an important mission of public funds.Including Invesco Great Wall Fund, Many fund companies have been actively involved in building the pension system and have successively launched target pension funds, which have played an important role in promoting the improvement of the pension fund security system, “said Invesco Great Wall Fund.
Wind data shows that since the first product was established in September 2018, to December 17, 2020, the number of funds (FOF) in pension funds reached 104 (statistics of different stocks), with a total scale of 62,159 million yuan, compared to the end of 2019. An increase of more than 80%. The Galaxy Fund Evaluation Center Partial Equity Fund Performance Index and Ordinary Bond Fund Performance Index are calculated. As of November 2020, the FOF annualized rate of return mentioned above is 9.38% on average, and overall good investment returns have been achieved. The value of the pension configuration.
In May this year, Yi Huiman, chairman of the China Securities Regulatory Commission, delivered a speech, noting that in order to unswervingly promote high-quality development of the capital market, it is necessary to actively create the conditions to smooth the channels for all type of funds, especially medium and long-term funds, and continue to increase communication and coordination with relevant parties. Efforts to promote relaxation in the proportion and scope of various medium and long-term funds entering the market, and promote the implementation of the policy of public investment funds in personal pensions as soon as possible.
The Central Economic Work Day held a few days ago proposed “to improve the governance of financial institutions, promote the healthy development of capital markets and improve the quality of listed companies” and “standardize the development of the third pillar of pension insurance “. Institutional sources believe that as a professional asset management institution, public fund companies can fully play the role of institutional investors in allocating resources in the capital market through in-depth research and professional investment, serve the real economy, serve people’s financial management and pension investment, and create for society. Higher value.
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Editor in charge: Lin Chen
