At the time of bond market adjustment, the bond base is subject to large redemption from time to time.
On May 21, China Southern Fund, Rongtong Fund and Jinyuan Shun'an Fund respectively announced that one of their bond funds was redeemed in large amount on May 20. Therefore, the fund company decided to improve the accuracy of the net value of relevant fund shares.
In addition, many bond funds began to adjust their purchase rules. On May 22 alone, 11 bond funds announced that they would suspend large purchases; On the same day, another 6 bond funds announced that they would resume large purchases.
The interviewees pointed out to the 21st Century Business Herald that the coexistence of suspension of large purchase and resumption of large purchase is mainly due to the fact that with the moderate recovery of fundamentals and the intensive introduction of stable growth policies, the market adjustment is nearing the end, and investors' expectations have turned optimistic.
As far as the bond market is concerned, some institutions believe that the bond bull may continue when the old and new drivers are converted. In terms of allocation, in the short term, based on the slope level of the current interest rate curve, the allocation of 3-5-year bonds may be relatively better.
Large redemption of 185 bonds
On May 21, China Southern Fund announced that the Class A shares of China Southern Xuyuan Bond Sponsored Fund would be redeemed in large amount on May 20, 2024. In order to ensure that the interests of the holders of Class A fund units of the Fund will not be adversely affected by the accuracy of the decimal point reservation of the net value of the units, after consultation with the custodian, China Southern Fund decided to improve the accuracy of the net value of Class A units of the Fund to 8 decimal places from May 20, 2024, and the ninth decimal place will be rounded off.
On the same day, Rongtongyuan's Class B shares of short-term financing bond funds and Class C shares of Jinyuanshun Anfengli bond funds were also redeemed in large amounts, and the accuracy of net value of fund shares was simultaneously improved. Among them, the net share value of Jin Yuanshun Anfeng Li C is rounded to the fifth decimal place.
"The continuous callback of the bond market will lead to the outflow of the bond funds. When the fund is redeemed in large amounts, the fund manager may be forced to quickly realize some assets at a lower price to meet the redemption demand, which will lead to a sharp reduction in the size of the fund assets. Improving the accuracy of the net value of fund units can make the redemption price of fund units more accurate, thus protecting the remaining unit holders and redemption The interests of investors. " Liu Siyan, a researcher of Jian Financial Information Fund Evaluation Center, pointed out to the reporter.
It is worth mentioning that in this year, debt gene has been redeemed in large amount, which has increased the accuracy of net worth.
According to Wind statistics, as of the noon of May 22, 185 funds have announced the issue of improving the precision of net value of fund units since this year.
In the same period of last year (January 1 - May 22, 2023), a total of 120 bond funds have improved the accuracy of the net value of fund units due to large redemption.
The reporter noticed that most of the debt bases with large redemption recently (the net redemption volume on that day accounted for more than 10% of the fund size) were products with high shares held by institutional investors.
For example, as of the end of the first quarter of this year, the net asset value of Nanfang Xuyuan A was 1.533 billion yuan; One institutional investor holds 99.25% of the shares of Nanfang Xuyuan Fund.
At the same time, from the mid report in 2020 to the annual report in 2023, at the end of each quarter, institutional investors have held more than 99% of the shares of Nanfang Xuyuan A.
In addition, there are also small-scale bond bases that trigger large redemption. Taking Jin Yuanshun An Fengli C as an example, as of the end of the first quarter of this year, the net asset value of the fund was only 124500 yuan.
On the whole, as of the end of the first quarter of this year, the net asset value of Jin Yuanshun An Fengli was 917 million yuan, with two institutional investors holding more than 20% of the shares. Among them, the closing holding ratio of institution 1 is 36.66%, and that of institution 2 is 38.68%. During the first quarter of this year, these two institutional investors did not redeem.
An insider pointed out that for smaller funds, even if the absolute share of redemption is not large, it may trigger large redemption. Large redemption is likely to lead to abnormal fluctuations in the net value of the fund.
In addition, for a single fund, if institutions redeem more shares, the fund size will decline, and even may bring liquidity risk to the fund, which will affect the investment return of the fund. Therefore, ordinary investors should try to choose debt based products with relatively balanced holder structure.
"Pause" and "Resume" coexist
In addition to improving the accuracy of net worth, recently, the bond base has also been busy adjusting the purchase rules.
On May 22, 11 bond funds (including bond index, the same below), including Chunhou medium and short term bonds, Boshi Yuli pure bonds, Jinxin Minfu bonds, Haifutong interest rate bonds, Everbright Prudential pure bonds, Caitong Asset Management Hongshang medium and short term bonds, announced that they would suspend large purchases.
Among them, the purchase amount of Chunhou medium and short term bonds will be limited from May 23, and the cumulative purchase amount of Class A or Class C fund shares of the fund in a single fund account (including conversion transfer and regular quota investment) on a single day shall not exceed 100000 yuan. The fund manager has the right to reject applications that exceed the limit.
Everbright Prudential Pure Bond has restricted the combination of subscription, conversion transfer and fixed investment business of institutional investors since May 23, that is, the total application amount of single institutional investor's single fund account's cumulative subscription, conversion transfer and fixed investment in the Fund's Class A fund shares or Class C fund shares in a single day should not exceed RMB 1 million. During the period of restricting the above large amount subscription, conversion transfer in and fixed investment business, the fund's redemption, conversion transfer out and other businesses were handled normally.
Fund companies generally say that the purpose of restricting large amount purchase is to protect the interests of existing fund share holders and strengthen the stability of fund investment operation.
For a long time, according to Wind statistics, since May, at least 69 bond funds have announced the suspension of large purchases.
Yao Xusheng, wealth management partner of Paipai, analyzed that in recent years, the A-share market has continued to fluctuate downward, investors' risk appetite has decreased, and their risk aversion has increased. The allocation of bond funds can effectively avoid sharp fluctuations in the stock market. At the same time, affected by factors such as slowing economic growth, prudent monetary policy, equity asset shock adjustment, large funds also tend to allocate prudent products, and bond funds are in strong demand. The inflow of short-term large funds causes the fund size to grow too fast, which will not only directly dilute the income of the original holders, but also lead to the mismatch between the fund manager's investment strategy and the size, and the reduction of the effectiveness of the strategy will affect the performance. Therefore, the suspension of large purchase by the fund manager can protect the interests of investors, ensure the smooth operation of the fund, and create long-term stable investment returns.
(Author: Yi Yanjun Editor: Jiang Shiqiang)
