Li Shuchao, a reporter from China Fund News.

Fund companies and third-party fund sales institutions have been incorporated into the pilot fund investment business, and banks are also actively laying out this field. In the fund investment business to be carried out by banks, fund companies with excellent performance are more favored.

A number of banks have applied for fund investment pilot projects.

A reporter from China Fund News learned that at present, Industrial and Commercial Bank of China, China Merchants Bank, China Construction Bank Corporation, and Ping an Bank are all applying for fund investment business pilot qualifications, and some banks have a good business foundation in fund marketing and fund investment business. a pool of excellent funds has been established, a good due diligence of fund managers has been done, and outstanding fund managers have been continuously tracked their research trends and investment performance.

People from the relevant business departments of Ping an Bank said that the pilot project of the bank's fund investment business is in the process of applying.

A person from China Merchants Bank's Wealth Management Department also told reporters that China Merchants Bank is determined to become the best customer experience bank and will actively participate in the pilot work of fund investment consultants, hoping to give full play to the advantages of "advisory service" with the help of investment business. further enhance the customer profit experience.

Speaking of China Merchants Bank's criteria for selecting excellent funds, the above China Merchants Bank said that he would look at the corporate culture, values, governance structure and incentive mechanism of fund companies from a longer cycle (more than 3 years). In the screening of fund managers, we hope to go with fund managers who insist on value investment and are long-term positioned to earn money for the growth of corporate profits. "maybe in the short term, we may not be able to win. But as long as we adhere to these principles for a long time, there is a good chance that we will help our customers get more stable long-term returns. "

Performance head companies are more popular.

Compared with the bank's "whitelist", the future fund investment will be more stringent in the choice of asset allocation.

A banker said that when choosing fund managers, it depends on the investment performance of more than five years, and some banks require three years of performance. In the future, with the development of fund investment business, the standard of excellent public offering funds is expected to change from the previous scale head to the performance head, talent head, and research ability head.

China Merchants Bank, the above-mentioned person from the wealth management department, said that if he became a pilot bank for fund investment business, China Merchants Bank would establish a more perfect investment advisory system according to regulatory requirements, in which the underlying product selection mechanism is the top priority. He said that China Merchants Bank will screen funds with more stringent criteria, carry out standardized and procedural due diligence, and form an evaluation report; finally, in determining the final types of investment, the Investment decision Committee will conduct a unified audit and do a good job in risk management.

The reporter learned that a number of banks applying for fund investment pilot qualifications have made a lot of attempts in fund investment business. In December 2016, China Merchants Bank Capricorn Zhi launched; in November 2017, Industrial and Commercial Bank of China launched Smart Investment "AI Investment"; in the same year, Ping an Bank launched Smart Investment in Ping an Pocket Bank, and the scale of investment business of some banks exceeded 10 billion yuan.

The "performance head" effect will be highlighted

Benefit excellent managers with long-term performance

When it comes to the strict performance screening criteria for funds by banks, a number of industry insiders believe that scale gives way to performance and becomes the selection standard for excellent fund companies, which is good for excellent managers with long-term competitiveness.

"this will make the head effect of fund companies more and more obvious." A medium-sized public offering in Beijing South China channel director said.

A director of the marketing department of a medium-sized fund company in Beijing said that it is good and appropriate for investors to have performance requirements and years for the selected products. If the performance is good, there is no shortage of money, so patiently do the performance, do a good performance will be more investment institutions to choose, this is a sound development of the logic. In addition, in the era of traffic, the communication efficiency of performance fermentation is higher than ever, and managers with excellent performance will not be buried.

The above-mentioned market participants also said that the standard from scale head to performance head will help the fund industry to continue to move towards the track of sound development, so that managers who really make money for investors can establish advantages; on the other hand, this screening mechanism will also help fund managers to patiently do a good job in old funds and change the phenomenon of "focusing on initial offerings rather than holding camps". Only by doing a good job in the performance of the old fund can there be a market for the issuance of new funds.

China Merchants Bank, the above-mentioned person from the wealth management department, said that the screening of fund companies and fund managers in a longer time dimension has been unanimously agreed across the industry, and this consensus has also contributed to the formation of the head effect of the public offering industry. "from overseas experience, the improvement of concentration is an inevitable stage in the development of the asset management industry, and it can also strengthen the competition in the public offering industry and screen out excellent managers with long-term competitiveness through market-oriented competition."

According to Wind, as of January 17, 2020, the number of fund managers over five years was 514, accounting for 24.15% of all fund managers. Among them, there are only 41 fund managers whose annualized return exceeds the benchmark by more than 10 percentage points, accounting for only 1.93%. Star fund managers such as Lin Peng, Xie Zhiyu, Liu Yanchun, Liu Gesong and Xiao Nan have been widely recognized by investors. it is also a scarce resource in the market.

Talking about the impact of bank fund selection criteria on fund managers' investment, a number of fund managers said that this will strengthen the long-term orientation of investment and help fund companies and fund managers to form the concept and culture of long-term investment.

A large public technology fund manager in Beijing believes that fund investment to strengthen the screening of long-term performance will help fund managers to play down short-term performance in investment and control short-term trading and game desire. "Fund managers invest, from a long-term point of view, to allocate the alpha factor of enterprise in-depth research in the investment, which can strive for a long-term and sustained victory over the benchmark with a low degree of deviation, and rank at the top of the market; if you enlarge your risk exposure and invest with a gambling mentality, you may not be able to control the risk."

An investment manager of a fund company in Shanghai also believes that banks are an important channel, and their selection criteria play a baton role in fund issuance. Fund investment to strengthen long-term performance can reduce the impulse of fund managers to pursue short-term performance, force fund companies to lengthen the assessment cycle, and let fund managers focus more on long-term investment. From a longer term point of view, this is expected to cultivate the investment management ability of fund managers across the market cycle, which is conducive to the formation of fund companies' long-term investment concept and culture; on the other hand, it also helps fund companies to pay more attention to the management of old products. As long as the long-term performance of the old fund is excellent, the fund company will have a greater say in the channel, which may be included in the scope of fund investment business of the bank channel, bringing steady growth in scale.

Editor: captain

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