On September 5th, Cailian Press (Reporter Wu Yuqi) In the volatile market, which type of product do internal employees of fund companies prefer? Which fund company's employees are most enthusiastic about buying their own products? Compared to ordinary investors, internal employees of fund companies have a deeper understanding of the fund products managed by the company, and can more accurately evaluate the long-term performance and growth potential of these products. Therefore, their choice of funds often receives close attention from the market.

With the completion of the semi-annual report disclosure of funds in 2024, the holding situation of public fund employees gradually emerged. Overall, employees prefer money market funds and tend to favor longer holding period products.

According to Cailian Press reporter's statistics, Wind data shows that in the first half of 2024, among the top ten funds with the largest employee holdings, half of them are money market funds. Industry insiders pointed out that under normal circumstances, because money market funds provide relatively higher liquidity while ensuring the safety of funds, these products have become the preferred investment choice for fund company employees.

Overall, employees of fund companies generally favor money market funds and longer holding period products.

Cailian Press reporters have compiled statistics on 7,253 comparable funds in the entire market (taking into account open-ended funds, as well as factors such as mini-fund 'shell protection', products with a size of less than 0.1 billion yuan as of June 30 were excluded from the statistics. A/C shares are calculated together below). From the perspective of single product holding shares, as of the first half of the year, fund managers held more shares of money market funds.

For example, the total number of shares held by employees in ChinaAMC Money Fund was 0.457 billion. The total number of shares held by employees in funds such as Rich Gos Treasury Wallet, Harvest Money Market, and Southern Fund Daily Profit exceeded one billion. Among the top 100 funds ranked by employee holding shares, there are 43 money market funds.

In addition to money market funds, employees of fund companies also have a strong preference for longer holding period products. For example, the total number of shares held by employees in ChinaAMC Leading Navigator with a six-month holding period was 0.237 billion, ranking second. GF Industry Select with a three-year holding period held by employees was 0.073 billion, as well as ChinaAMC Advantage Value with a one-year holding period and Ruiyuan Balanced Value with a three-year holding period, both held by employees at approximately 0.061 billion shares each.

Fund company employees tend to choose money market funds, according to a fund researcher, mainly based on the following three core considerations:

Firstly, stability is their top priority factor. Money market funds, as a stable investment tool, usually have stable investment targets and strategies, which reduces the sharp fluctuations in asset value. Therefore, employees are more inclined to use these funds to preserve and steadily increase their assets.

Secondly, risk control is another key factor. Since money market funds primarily invest in short-term bonds and money market instruments, the credit risk and market risk of these investment targets are relatively low. Therefore, employees can effectively reduce the overall risk level of their personal investment portfolio by investing in these funds.

Finally, the convenience of liquidity is also a reason why money market funds are favored. These funds provide high liquidity, allowing investors to subscribe and redeem at any time, with fast fund settlement speed. This makes them very suitable for employees who need short-term fund management and quick fund allocation.

In terms of ownership ratio, the fund with the highest ownership ratio among employees is E Fund Global Allocation, which is a QDII fund, with a total ownership ratio of 23.92%. Tianhong Long-Term Growth One-Year Ownership reaches 22.40%. The ownership ratios of E Fund Global Allocation, Tianhong Retirement 2050 Five-Year Ownership, E Fund Advantage Navigation Six-Month Ownership, Orient AlphaStar One-Year Ownership, CICC Global Quality Selection, E Fund CSI Medical Service Index-Linked, and other products held by employees are all above 10%.

In comparison, due to the large size of money market funds, although the fund management employees hold a larger share, their actual proportion is relatively low. The funds with higher ownership ratios among the management employees are QDII funds, mixed-type funds, and holding period FOF products.

In this regard, the aforementioned researcher also mentioned, "Given that fund company employees must adhere to a certain holding period when purchasing fund products, the general staff of the fund company have a 6-month lock-up period for buying their own company's products, while executives and research directors need to hold for more than 1 year. They often focus on products that have set holding periods."

Which actively managed equity fund is most favored by employees?

Among the most market-followed active equity funds (including equity, balanced mixed type, flexible allocation type, balanced mixed type funds), Zhonggeng Value Pioneer ranks first with 0.195 billion shares held by management personnel, accounting for 3.83% of the total holdings. The fund is managed by Chen Tao.

Also, Zhonggeng Hong Kong Stock Connect Value ranks second with a total of 0.094 billion shares held by employees under Zhonggeng Fund. It is worth noting that the fund is currently managed by Sun Xiao, with Qiu Dongrong as the previous fund manager.

In addition, Guangfa Industry Select 3-year hold, Ruiyuan Balanced Value 3-year hold, Huitianfu Prospect Growth 1-year hold, and Zhonggeng Value Quality 1-year hold have a relatively large number of holdings by employees. They are 0.073 billion shares, 0.061 billion shares, 0.049 billion shares, and 0.049 billion shares respectively. Well-known fund manager Xie Zhiyu manages Xingquan Herun and Xingquan Heyi, with employees holding 0.046 billion shares and 0.041 billion shares respectively.

Well-known fund manager's products have been redeemed by their own employees.

Entering 2024, the A-share market has experienced ups and downs, and the performance of equity funds is generally poor. Judging from the changes in holdings and shareholding by management personnel, there have been mostly wrong purchases and no wrong sales. Many products managed by well-known fund managers have also been redeemed by their own employees in large quantities.

Looking at the list of reductions, Dongfang Alpha Xingke has been reduced the most by employees, with a total reduction of about 46.31 million shares. This fund is managed by Yin Zhibin, and its current fund size is 0.195 billion yuan. Bodo Ruijian 1-year hold, Zhonggeng Value Pioneer, and ICBC Shanghai-Hong Kong-Shenzhen Half-Year were all reduced by more than 10 million shares by employees. Xingquan Social Value 3-year hold managed by Xie Zhiyu was reduced by 5.87 million shares in the first half.

Yifangda Blue Chip Select managed by Zhang Kun, another well-known fund manager, was reduced by 4.33 million shares by employees. The current total holdings by employees amount to 19.76 million shares. Yinhua Xinjia Two-Year Hold managed by Li Xiaoxing and Zhang Teng was reduced by 3.41 million shares, with the current holdings by employees amounting to 9.26 million shares. HSBC Jinxin Research Select managed by Lu Bin was reduced by approximately 3.05 million shares, with the current holdings by employees amounting to 12.9 million shares.

Some of the products managed by Ge Lan have also been reduced by employees. Among them, Zhongou Medical Innovation's employee holdings decreased by 0.67 million shares as of the end of last year, and Zhongou Medical Health and Zhongou Mingrui New Starting Point decreased by 0.27 million shares and 0.15 million shares respectively. Jing Shun Changcheng Jiyou Chengzhang and Jing Shun Changcheng Xinxing Chengzhang, both managed by Liu Yanchun, were reduced by 0.89 million shares and 0.23 million shares respectively.

It is worth mentioning that among the six products under Zhonggeng Fund, apart from Chen Tao's management of Zhonggeng Value Pioneer, the remaining five products, Zhonggeng Hong Kong Stock Connect Value, Zhonggeng Small Cap Value, Zhonggeng Value Navigator, Zhonggeng Value Flexible Allocation, and Zhonggeng Value Quality, all had Qiu Dongrong involved in management for a year, except for Zhonggeng Hong Kong Stock Connect Value. As of June 30, the company's employees have increased their holdings in the four products, except for Zhonggeng Hong Kong Stock Connect Value, compared to the end of last year, with increases of 0.12 million shares, 0.39 million shares, 1 million shares, and 8.88 million shares respectively. The announcement shows that Qiu Dongrong officially resigned on July 19th this year.