Du Zhixin
Stimulated by the earning effect of the stock market, stock funds have become popular since last year, and money market funds have been redeemed correspondingly. According to WIND statistics, the redemption amount of money market funds in the fourth quarter of last year alone reached 27.68 billion. However, since last week, the average 7-day annualized return of money market funds has increased by 2%. This week, the 7-day annualized return of money market funds continued to rise. The 7-day annualized return of Shenwan Paris Yibao reached 3.446% on January 29, and the 7-day annualized return of HFT Money B also stood above 3%. At the same time, money market funds are also shortening the duration of their portfolios and carrying out product innovation, so that money market funds can truly return to "cash replacement tools".
Portfolio maturity reduction
According to the statistics of the fourth quarter report of Tianxiang Fund, the average residual maturity of the investment portfolio of money market funds in the fourth quarter of 2006 was 112 days, 30 days lower than the average residual maturity of the investment portfolio in the third quarter of last year. Among them, the average residual maturity of Rongtongyi payment currency and Huafu currency investment portfolio declined more than 60 days in the fourth quarter. Huafu Currency, Taixin Daily Income the Great Wall The average residual maturity of the 13 money market funds, including money funds, at the end of the fourth quarter report of 2006 was less than 100 days, and the money market funds with the average residual maturity of the portfolio at the end of the fourth quarter last year was less than 100 days accounted for 30% of all money market funds.
From the perspective of bond varieties held by money market funds, according to WIND statistics, money market funds significantly reduced their holdings of bond varieties with residual maturity of more than 180 days and 90 days in the fourth quarter of last year, and increased their holdings of bond varieties within 90 days. Data shows that the proportion of bond positions within 90 days in the net value of monetary funds reached 49.4%, up about 10% from the third quarter.
Redemption of monetary funds T+0
Money market funds have made further progress in increasing liquidity. Recently, ICBC Credit Suisse and Industrial and Commercial Bank of China Jointly launched the "T+0" quick redemption business of "Li Tian Li" account, and ICBC Credit Suisse money market fund became the first money market fund that could be redeemed by "T+0" method. The "Li Tian Li" account can connect current savings deposits with low-risk funds such as money markets and short and medium term bonds. The depositor only needs to set the "amount of purchase initiation" and "amount of redemption initiation" of the account to realize automatic cash management.
However, when a customer initiates a quick redemption, it needs to pay a certain service charge to ICBC. It is understood that the customer's "T+0" redemption charge is the bank's half yearly loan interest rate from the date when the customer initiates the application for quick redemption to the date when the redemption fund arrives. At present, the half yearly loan interest rate of ICBC is 5.58%.
Wang Qunhang, a senior fund researcher of Galaxy Securities, said that the introduction of the redemption "T+0" trading system by ICBC Credit Suisse was a good thing for money market funds, but it was still difficult to widely promote the implementation of "T+0" trading by money market funds. This is mainly related to technical issues. ICBC Credit Suisse launched this trading system mainly with the support of ICBC. Not every fund company and bank can implement this system. However, Wang Qunhang also said that ICBC Credit Suisse money market fund has implemented "T+0", further enhancing liquidity, but also to prevent arbitrage funds from large inflows and outflows affecting the interests of its original holders.
The yield is expected to rise in the future
Last year, due to the positive stock market and Bank of China , Industrial and Commercial Bank of China and other new shares were issued intensively, and money market funds suffered huge redemptions. Hua'an Cash Rich Growth reported in the fourth quarter of last year that in the fourth quarter, money market capital and interest rate levels continued to be affected by the trade surplus and IPO of new shares, and the capital was generally rich, but gradually tightened.
With the stock market soaring all the way, the Shanghai Stock Exchange Index has hovered around 3000 points, and the stock market is under greater pressure to consolidate. At the same time, although the deposit reserve ratio has been continuously adjusted, the regulation effect is not obvious, and the huge amount of new funds shows that the overall liquidity is abundant, so there is a greater possibility of interest rate increases in the future. Affected by the above two factors, the yield of money market funds is expected to increase slightly in the future. Ren Tong, a researcher of United Securities Fund, said, "Compared with last year, due to the greater pressure of raising deposit and loan interest rates this year, the money market fund will make some new portfolios based on the interest rate increase, adjust some short-term bond portfolios, buy better quality bonds, and the yield of money market funds is expected to increase. However, the return of money market funds is always the second, and liquidity is the first.
However, China Merchants Cash Appreciation Fund believes that the money market in the first quarter of this year, based on the market's good expectations for the overall performance of listed companies in 2006, shares The market will still perform well in the first quarter. Many mainland companies listed overseas have returned to A-shares. The impact on monetary funds will continue in the first quarter, but the impact may be less than that in 2006.
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
