In the first half of this year, brokers' pooled products generally reaped positive returns. Whether it was stock, bond, hybrid, or QDII products, nearly 70% of the products made profits.
In terms of yield alone, the inferior class of structured products topped the list, but performance was highly differentiated, and those with the lowest losses were also graded products, which can be described as graded for success as well as for loss.
If graded products are excluded, “Dongfanghong Pioneer 7”, a subsidiary of TSE Asset Management, topped the list with a yield of 40.42%, and TSE Asset Management occupied 12 seats in the top 20 list of hybrid pooled products, making it the brokerage firm with the most impressive asset management performance in the first half of the year.
Just a few days ago, Zhongyuan Securities was approved to set up an asset management branch in Shanghai to boost asset management business, while more brokerage firms chose to set up asset management subsidiaries to develop asset management business. Either way, it means more brokerage firms are investing heavily in the asset management business.
Nearly 70% pooled profit
According to statistics, in the first half of this year, brokerage firms collected profits from reasonable financial products and generally received positive returns. Regardless of whether they are stock type, bond type, hybrid type, or QDII products, they made profits of more than 60% or nearly 70% of their products.
Stock products, the vast majority of the top 20 highest yielding products are structured products. Brokerage firms such as Xing Securities Asset Management, Great Wall Securities, Huatai Asset Management, Dongxing Securities, Guangfa Asset Management, Guoxin Securities, Hualong Securities, Guojin Securities, Qilu Asset Management, China Securities, and Fortune Securities all have graded products on the list.
The top 20 list of brokers' consolidated product earnings in the first half of the year (stock type)
If graded products are excluded, Dongfanghong Pioneer No. 7 and No. 3, a small group under TSE Asset Management, performed the best, receiving 40.42% and 39.19% revenue respectively, leading the ranking.
Among bond-type products, the highest yield was Zhejiang Hengtian Jiji Juli No. 3 ordinary grade, which is also a structured product; in second place is Pacific Red Coral No. 30, with a yield of 22.27%; followed by Guorong Securities VIP No. 2 and Nissin Securities Changan No. 1.
QDII products also performed well, benefiting from good market conditions in Hong Kong and the US. The three funds, Huatai Zijinlong China, Everbright Global Flexible Allocation, and Guangfa Asset Management Barclays Hiller US Index, ranked in the top three, receiving returns of 14.17%, 13.78%, and 7.24% respectively. Furthermore, Guoxin Jinhuibao New Zealand's QDII, which had the highest revenue last year, also had a yield of 6.12% in the first half of this year, ranking fourth.
The top 20 list of brokers' consolidated product earnings in the first half of the year (QDII)
Success is graded, defeat is also graded
Structured (graded) products with extreme performance. The top ten brokerage group products in the first half of this year were basically graded products, but the 20 products with the lowest yield were also all graded products.
The most obvious differentiation is the “Xinzhong” series of Xingzheng Asset Management. Xingzheng Asset Management Xinzhong No. 5 Sub-B and Xingzheng Asset Management Xinzhong No. 3 Sub-B ranked first and second in earnings in the first half of this year. The yield was surprisingly high, making up for some of the losses in the past; Xingzheng Asset Management Xinzhong No. 1 ranked fifth, with a yield of 86.78%, and a net unit value of 3.816.
The performance of Xingzheng Asset Management Xinzhong No. 51B was at the bottom, with losses reaching 98.53%. There were also losses of more than 40% for products such as Xing Securities Asset Management Xinzhong No. 19 Secondary, Xing Securities Asset Management Xinzhong No. 29 B, and Xing Zheng Asset Management Xinzhong No. 24 B.
Furthermore, a medium- to long-term pure debt fund managed by Zheshang Asset Management, Zheshang Hengtian Jiji Juli No. 3 ordinary grade also became the product with the highest yield among bond-type pooled products. The combined yield of this small-group structured product in 2016 was 12.66%, and the average yield in the first half of this year was 56.31%.
The top 20 list of brokers' consolidated product earnings in the first half of the year (bond type)
Dongfanghong series leading performance
Whether it's stock, hybrid, or bond-type pooled products, the ones with the highest yield in the first half of the year were structured products. If the classification is excluded, the small group Dongfanghong Pioneer No. 7, No. 3, and No. 1 under Eastern Securities Asset Management performed the best. These three products received profits of 40.42%, 39.19%, and 36.18%, respectively.
The top 20 list of brokers' consolidated product earnings in the first half of the year (hybrid)
The three pooled products are classified as flexible allocation funds in a hybrid type. According to China Eastern Securities Asset Management's own classification, they are a small collection of partial shares, and are managed by the same investment sponsor, Li Jing. According to information, Li Jing has a master's degree in economics from Fudan University. He has been in the securities industry for 9 years. He has been a researcher at Orient Securities Asset Management Business Headquarters, a senior researcher in the research department of Orient Securities Asset Management Co., Ltd., and an investment organizer in the special account investment department.
From the breakdown of Dongfanghong Pioneer 7's top ten stocks at the end of the first quarter, we can also see the investment style of Li Jing and Eastern Securities Asset Management. Heavy blue chip holdings in A shares and H shares became the main reason for their good performance. The 10 stocks with the highest market value share in this product are Geely Automobile, Longji Co., Ltd., Midea Group, Hikvision, Tencent Holdings, Hengrui Pharmaceuticals, Dongfang Yuhong, Haida Group, China Hongqiao, and Hualu Hengsheng.
Furthermore, the performance of other products of TSE Asset Management in the first half of this year was also impressive. In the list of the top 20 hybrid pooled products, TSE Asset Management occupied 12 seats. All pooled products with half-year results that can be followed, with the exception of Dongfanghong Zengli 1B (2013) individual product losses, have almost all profits, with an average product yield of 13.6% (not counting public funds).
A public fund under Eastern Securities Asset Management, Dongfanghong Ruihua Fund ranked first in hybrid fund performance with a performance of 31.48%. Dongfanghong Rui Feng, Dongfanghong Shanghai-Hong Kong-Shenzhen, Dongfanghong Ruiyuan, Dongfanghong Ruixuan Shanghai-Hong Kong-Shenzhen, and Dongfanghong China also ranked first among hybrid public funds.
Collections of nearly 19 trillion dollars account for 12%
The performance and scale of the pooled plan best reflect the active management capabilities of brokers' asset management, but only about 12% of the scale of brokers' asset management of about 19 trillion dollars is a pooled product.
Since the semi-annual report has not yet been released, according to the data at the end of the quarter released by the China Fund Industry Association, the number of brokers' asset management products reached 23,300, and the asset size was 18.77 trillion yuan. However, apart from direct investment subsidiaries' first-tier direct market funds, the pooled plan was only 2.29 trillion yuan, and the special asset management plan was 99.544 billion. Most of the rest were targeted asset management plans.
The asset size of targeted asset management plans has reached 16.06 trillion dollars, and only a small percentage is active investment business (ignored). In fact, almost all channel businesses commonly use the “targeted asset management plan” product form. A rough estimate can also calculate that the channel business still accounts for 85%.
At the end of the first quarter, CITIC Securities, Guangfa Asset Management, Cathay Pacific Junan Asset Management, Huatai Asset Management, and Huarong Securities generally ranked in the top 5, while active management accounted for a large share of the asset management scale, such as Qilu Asset Management, TSE Asset Management, CaiTong Asset Management, and First Venture Securities.
Continued establishment of asset management/branch offices
On June 30, Zhongyuan Securities was approved to set up an asset management branch in Shanghai, specially staffed with asset management personnel to further improve and improve the system, business equipment, and information systems.
Currently, not many brokerage firms have set up asset management branches. Apart from Zhongyuan Securities, there are also Guojin Securities, etc. More brokerage firms choose to set up asset management subsidiaries to develop asset management business. Subsidiaries with independent legal personality are more likely to adopt employee equity incentive mechanisms and space to develop brand influence, but at the same time, they also have to bear higher costs than branches.
According to incomplete statistics, more than 13 brokerage firms have established asset management subsidiaries, including Shanghai Orient Securities Asset Management Co., Ltd., Shanghai Guotai Junan Asset Management Co., Ltd., Shanghai Haitong Securities Asset Management Co., Ltd., Huatai Securities Asset Management Co., Ltd., Guangfa Securities Asset Management Co., Ltd., Qilu Securities (Shanghai) Asset Management Co., Ltd., Zhejiang Zheshang Securities Asset Management Co., Ltd., Caitong Securities Asset Management Co., Ltd., Bohai Huijin Securities Asset Management Co., Ltd., Galaxy Jinhui Asset Management Co., Ltd., Xingzheng Securities Asset Management Co., Ltd., etc.
Industry insiders believe that in the future, with the further expansion of asset management business space and an increase in the share of asset management revenue to brokerage firms, more brokerage firms will vigorously develop asset management business.
