Bank Of China Fund Bull Market Stalled: Weak Equity Capacity, Fixed Income Scale Shrink, Many Of Its Funds To Liquidation

As a large-scale public fund company with banking system, the performance of BOC fund has regressed in the past two years.

According to wind data, the reporter of 21st century economic report found that in the first eight months of this year, five funds under BOC fund triggered the termination clause of their contracts and were wound up, which is the largest number of funds in all fund companies that have been wound up due to this reason.

In fact, the size of BOC funds did not grow in the past two years, but shrank.

The total management scale of BOC fund at the end of 2020 is 357.139 billion, including 287.923 billion of non monetary fund management scale, which is 24.708 billion and 8.392 billion respectively compared with the data at the end of 2019.

As of the first half of this year, the total management scale of BOC funds was 373.388 billion, and the scale of non monetary management was 265.15 billion. The management scale of non monetary funds of BOC funds has further shrunk.

It is worth noting that, according to the latest data of the fund industry association, as of the end of July this year, the total management scale of public funds has reached 23.54 trillion yuan. Public funds ushered in a new year of development, and this old bank is a large public fund company. Why did BOC fund stall in the bull market?

"Liquidation season" of BOC

When more and more 23 trillion funds are pouring into the performance funds managed by star fund managers, there are more and more Mini funds.

It is the fate of many products of BOC fund that it is difficult to sustain and has to go into liquidation.

According to the data, three of the five funds in the liquidation of BOC funds this year are all active equity products, and the remaining two are bond funds.

The reporter of 21st century economic report found that there are many new blue chips of Bank of China managed by Yan Fei, an old general, in these five funds.

Yan Fei joined the Bank of China Fund in 2015. Before that, she worked as a fund manager in RONGTONG fund. Her total time as a fund manager was more than 13 years.

Since its establishment in May 2017, BOC's new blue chip has achieved a return of 60.1%. The fund's scale at the end of the second quarter of this year was only 17 million yuan. This year, the fund's return is - 7.67%.

In fact, the fund share of BOC's new blue chip has gradually shrunk since its establishment. By the end of September 2018, the size of the new blue chip fund had shrunk to 50.4654 million yuan, approaching the liquidation line. Although the size of the fund will increase in 2019, it will be further reduced in 2020 and 2021.

There are many new funds in the liquidation products of BOC funds. For example, Huixing Duoli, the Bank of China, was established on February 7, 2020 and expired on April 29, 2021. It was established for only one year and two months before it was declared to be in liquidation.

Although Huixing Duoli is a bond product, BOC fund has always been strong in the fixed income field. But the fund has suffered the same fate as BOC's new blue chip.

Data show that the scale of Huixing Duoli has shrunk quarter by quarter since its establishment, from the initial 345 million to the final 21.85 million.

Even more ephemeral is the vitality of BOC's consumption. The fund was established in June 2019 and wound up in February 2020, less than a year ago. Since its establishment, the fund has returned 10.85%, managed by Qian Yafeng.

At the same time, the scale of liquidation is gradually descending.

Interestingly, last month, the Bank of China fund just issued a new consumption theme fund, and the Bank of China Xinxin new consumption growth. Huang Jun, the fund manager, took charge of the fund. The fund was raised on September 1 and has not yet been established.

Old funds are not recognized and turned to new funds. How the Bank of China funds perform this time remains to be tested by the market.

According to the data, Huang Jun has been a fund manager of BOC funds since March 2019. At present, she manages the theme strategy of BOC and BOC earnings. As of the first half of this year, the total management scale was 2.148 billion yuan.

Lack of rights and interests talents

In this era of frequent star fund managers, BOC fund does not have a star fund manager of equity fund with appeal.

Compared with the star fund managers, such as Yuan Fang and Zhao Yi, who have emerged from ICBC Credit Suisse fund and ABC Huili fund, BOC fund is very lonely.

In 2020, Chen Jun, an equity veteran of BOC fund for 16 years, will leave. Chen Jun worked in BOC fund from April 2004 to February 2020. He successively served as fund manager, general manager of equity investment department, assistant executive president and deputy executive president. In the 13 years and 139 days of Chen Jun's management of the CBRC hybrid fund, the post return reached 554.64%.

At present, Yan Fei is the equity fund manager with the longest service life of fund manager of BOC, while Li Jian, another fund manager with more than 14 years of fund manager, prefers fixed income products.

In addition, there are three fund managers with more than 10 years of fund managers in BOC fund, including Xi Pengzhou and Bai Jie as bond fund managers and Wu Yin as equity fund managers.

The reporter of 21st century economic report found that Wang Shuai is the largest equity fund manager of BOC at present, and his latest management scale is 3.587 billion yuan. Not enough for some star fund managers.

From the performance point of view, Wang Shuai's management of the five funds since this year's earnings have been negative.

"There are several reasons for the poor development of equity products of banking funds. One is the problem of capability circle. Many leaders come from banks and have a solid income background, so they have more advantages in the field of fixed income; The other problem is incentive. Banking companies are assessed according to the overall willingness of the bank. The degree of marketization of salary is not high, and the incentive is not very good. Therefore, business development can only be said to be relatively stable. " A public fund research institute told the 21st century economic reporter.

"Compared with China Europe Fund and other companies with sufficient incentives in the industry, it is very obvious that only with incentives can there be development." The person said.

"The construction of the company's talent team is a long-term work, which needs an effective system." A brokerage fund analysts also pointed out.

As for the development of BOC fund in the past two years, a fund manager who once worked for BOC Fund said in reply to the reporter of 21st century economic report, "there is no more to say." A current fund manager said, "there is no problem with the company's development."

Dominant areas show declining trend

"As a fund company in the banking system, BOC fund's advantage area is fixed income. Equity products have always performed generally. This is actually a problem of resource endowment." A fund sales company in South China told the 21st century economic reporter.

"The fixed income products of BOC funds are actually very recognized by the industry. We have a fund portfolio constructed by a fund company. In addition to its own products, the selected bond funds are the products of BOC funds." The person said.

But even in the past strong fixed income areas, BOC funds are also weak.

According to the data, after reaching the peak at the end of the first quarter of 2020, the scale of bond funds of BOC funds began to decline. By the end of the first half of 2021, the scale of bond funds of BOC funds was 206.355 billion yuan, nearly 60 billion yuan less than that at the end of the first quarter of 2020. Since 2020, there are also three bond funds that have been wound up by BOC fund.

In fact, the Bank of China fund had its peak.

By the end of 2018, the management scale of BOC funds reached a record high of 451.844 billion yuan, and the management scale of non monetary funds reached 188.086 billion yuan, ranking the fourth in the industry, and also the first among all public funds in banking system.

However, at the end of the second quarter of this year, the scale of non monetary fund management of BOC funds has fallen to the 17th place in the industry.

On the one hand, the equity products are insufficient; on the other hand, the performance of fixed income advantage projects is weak, which makes BOC fund in an awkward situation.

At the end of the second quarter of this year, the scale of non monetary funds of ICBC Credit Suisse, which is also a banking system, has exceeded 400 billion. Compared with the bond fund of BOC fund, the scale of stock fund of ICBC Credit Suisse fund is close to a quarter of that of non monetary fund.

According to the data, at the end of the second quarter of this year, the scale of equity funds of BOC funds was 6.21 billion yuan, that of bond funds was 206.343 billion yuan, and that of hybrid funds was 51.8 billion yuan. The scale of bond funds accounts for 78%.

"Under the influence of the new rules on asset management, we should clean up the fixed income products customized by institutions, which is also an important reason for the reduction of the scale of bond funds of BOC funds." The analysts said.

From the perspective of the new fund layout in the past two years, BOC funds still focus on fixed income products.

According to the 21st century economic report, only 3 of the 15 new funds issued by BOC funds in the past year are active equity funds, the rest are 5 partial bond hybrid funds, 6 bond funds and 1 fof.