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Hankyoreh material photo. Reporter Baek So-ah
Financial authorities have drawn up a plan to revitalize public offering funds that have been invested due to falling returns. The Financial Services Commission announced on the 31st that it had discussed the details of a plan to improve the competitiveness of public offering funds at the Capital Division of the Financial Development Council held on the 29th. The basis is to increase investment attractiveness of the public offering fund by launching a variety of public offering fund products and increasing the number of channels to help select investors. The Financial Services Commission said: “The public offering fund is a traditional method of asset management of the general public that allows small investments and is suitable for the pursuit of medium risk and medium return, but the public offering of individual investors due to insufficient performance of the management of public offering funds, sales channels focused on banks and securities companies, and a lack of product diversity The preference for the fund has decreased considerably, “he said.” It is necessary to support the stable growth of people’s wealth by offering a fund managed by experts and that has the advantage of a diversified investment. ”The proportion of private investor balances in publicly offered funds is continuously decreasing from 51 , 0% in 2015 to 47.6% in 2019 and 41.5% in 2020. First, the Financial Services Commission decided to introduce a type of “ performance-linked management fee ” that links the performance of the fund conducted by the manager during a specified period with the manager’s compensation for the following period in order to increase the performance of the public offering fund. If the performance of the fund management is good, a certain portion of the rate of Management performance is added to the basic pay rate; otherwise, the management loss rate is added. It is similar to a “ performance paid fund ” that n or you receive additional compensation if you do not comply, but it is suitable for long-term investors since the basic compensation of the manager is as high as that of a general fund, and the performance of a given period is linked to the following period. Furthermore, funds with little investor participation will be able to change their investment strategy only by resolution of the manager’s board of directors. For example, a fund that has been established for more than 10 years and has an average daily deposit of less than KRW 5 billion for the past three years may change its investment strategy if investor dissent is below a certain level. . The Financial Services Commission also decided to increase the types of public offering funds to expand consumer choice. In addition to the money market fund (MMF) denominated in KRW, a foreign currency denominated money market fund is introduced and a “ period payback type fund ” is created that periodically returns investments within a certain percentage limit Investor request fund assets. ETF products are expected to ease asset composition requirements (10 or more types of bonds and bonds, respectively → 10 or more types of assets, regardless of asset type) and launch new bond-type products with maturity. The existing bond ETF did not expire. In addition, we are considering introducing a fund that can change investment objectives during operation. In the initial stage of fund establishment, the bonds are managed, but when the size of the fund increases, it becomes a capital stock investment fund (SOC). It also promotes online sales channels for public offering funds. Investors can conduct simple online transactions related to public offering funds, such as opening an account and searching investment information through the “integrated online advisory platform” created by Koscom. When the online advisory platform is activated, financial authorities expect investment advisers to be able to consult on the products of various securities firms, freeing themselves from consulting mainly on the products of two or three contracted securities firms. In the future, investors in public offering funds will be able to check the fund’s performance, such as the average performance of each provider, with the Financial Investments Association. In the case of funds invested in other funds, the final information of the underlying asset is modified so that investors can find it in the prospectus and in the asset management report. Open funds, which are required to return their investments to investors at any time, must perform a liquidity stress test at least once a year and provide information to the investor on liquidity risk. Financial authorities announced that revisions to the law will be announced in April and that the revisions will be completed in the third quarter for matters requiring revision of subordinate regulations such as the implementing decree. In addition, we plan to develop a plan within two-quarters of the issues that the industry decided to pursue autonomously. By Shin Da-eun, Staff Reporter [email protected]
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