“If the impact of the (banking) wealth management subsidiary on the fund industry was only at the level of discussion, the announcement of the performance of the six major wealth management subsidiaries has already put the challenge to the fund company on the bright side.” A fund practitioner The reporter told reporters this way.
As the major banks have successively disclosed their 2019 financial reports, the transcripts of the wealth management subsidiary of the “new star” bank, which was established less than a year ago, have also surfaced. In terms of total assets, ICBC’s wealth management scale is nearly 16.4 billion yuan, and it lives in the middle reaches of 140 fund companies. The total assets of the six wealth management subsidiaries exceeded 63 billion. With the launch of new products issued by the wealth management subsidiaries of various banks and the accelerated development of outsourcing business, at what level will the impact on fund companies fall?
Only one year after its opening, the total assets of the six wealth management subsidiaries exceeded 63 billion
At present, the wealth management subsidiaries of a total of 6 banks have disclosed the size of assets, and most of the wealth management subsidiaries have disclosed net profit data.
From the perspective of asset scale, ICBC’s ICBC Wealth Management has the highest total assets of 16.397 billion yuan and net assets of 16.33 billion yuan. CCB Financial Management, a subsidiary of China Construction Bank, followed closely, with total assets of 15.217 billion yuan and net assets of 15.06 billion yuan. Bank of China’s wealth management ranked third, with total assets of 10.233 billion yuan and net assets of 10.175 billion yuan. The scale of wealth management issued by BOC Financial Management reached 74.492 billion yuan.
The total assets of Bank of Communications Wealth Management, China Post Wealth Management, and the first joint-stock financial management subsidiary, Everbright Wealth Management also exceeded 5 billion yuan, with total assets of 8.177 billion yuan, 8.01 billion yuan, and 5.021 billion yuan, respectively. The net assets of the three are as high as 8.089 billion yuan, 8.003 billion yuan, and 5.004 billion yuan, respectively.
What is the total asset scale of a wealth management subsidiary that has been established for one year in the industry? Wind data shows that as of the end of 2019, among the 140 fund companies’ non-monetary wealth management scale, ICBC’s wealth management ranked 16.75 billion in the 75th, ranking in the middle, surpassing well-known fund companies such as Ruiyuan and Cinda Australia Bank. The scale of total assets is also higher than that of more than 60 fund companies with years of precipitation. At the same time, the total assets under management of less than 100 fund companies exceeded 5 billion yuan, while the total assets of the six banking wealth management subsidiaries established less than one year ago all exceeded 5 billion.
In terms of “monetization” ability, as of the end of 2019, ICBC’s wealth management still ranked first, with a net profit of 330 million yuan for the whole year. Bank of Communications’ net profit was RMB 89 million, CCB’s net profit in 2019 was RMB 60 million, and Everbright’s net profit was RMB 3.7 million.
Regarding the growth rate and considerable performance of wealth management subsidiaries in 2019, Jia Zhi, Director of Research of Ping An Securities Fund, said: “Bank wealth management subsidiaries are currently undertaking past wealth management products, not starting from scratch, so the profitability of the year only continued in the past Profitability. “
Similarly, Yang Jiaxing, a senior fund researcher at Tianxiang Investment Gu, also said that the current profitability of bank wealth management subsidiaries when opening business was relatively normal. When the wealth management subsidiaries started their business in the early stage, they still mainly focused on the traditional business direction of the bank The collected products do not have excessive learning costs for the company or for customers, so the transition is smooth.
Based on the diversified layout of fixed income, the wealth management subsidiaries will expand or intensify the differentiation of the fund industry on the 28th
The impact of wealth management subsidiaries on fund companies has been widely discussed. The announcement of the performance of financial management subsidiaries has also made this issue more of a concern. Fund practitioners have always believed that the 28th division of fund companies is already obvious, and the growth of wealth management subsidiaries has exacerbated this trend.
“The advantages of bank wealth management subsidiaries at this stage are mainly in solid income products, including structured products. This is the consistent advantage of banks. Benefiting from independent entities, wealth management subsidiaries can further develop on the basis of inherent wealth management products. Give full play to the advantage. “Yang Jiaxing analysis said.
Yang Jiaxing analysis said that the landing of wealth management subsidiaries will indeed impact the fund companies to a large extent, especially products that are mainly based on currency funds and short-term debt will usher in the challenges of wealth management subsidiaries. The bank’s experience is very rich. As for credit bonds, fund companies may be able to compete with wealth management subsidiaries through their own credit rating system. Similarly, from the perspective of fixed income and debt products as a whole, wealth management subsidiaries will have a relatively large impact on fund companies.
Jia Zhi believes that bank wealth management subsidiaries are strong in the field of fixed income and will have an impact on public funds, “but in the long run it is a relationship of healthy competition.”
According to the information disclosed by many financial management subsidiaries, at present, many companies are taking the lead in solid income and laying out multi-theme products such as FOF. For example, ICBC Wealth Management has more than 350 features in all categories including fixed income, equity, commodities and financial derivatives and mixed four categories including fixed income +, cash management, equity, projects, multi-asset portfolio, alternative, quantitative and cross-border. product. Xu Xueming, vice president of the Postal Savings Bank, also previously said that since the opening of China Post Wealth Management, it has completed the currency, pension, linked asset rotation index strategy, and “fixed income +” several series of products. The next step will also accelerate the introduction of hybrid Products, FOF strategy products, anti-inflation themed products.
Accelerate foreign cooperation and favor cooperation with medium and large fund companies
At present, with the intensive landing of its new products, the outsourcing cooperation between wealth management subsidiaries and fund companies is also getting closer.
According to data from China Wealth Management Network, as of March 26, all bank wealth management subsidiaries had filed a total of 697 products, including 377 ICBC wealth management records, and BOC Wealth Management and CCB Wealth Management respectively filed 97 products.
CCB Wealth Management cooperated with a number of fund companies to record 6 collective asset management plans for the main investment in fixed income and equity markets. Recently, a number of bank wealth management subsidiaries have been commissioned. A wealth management product recently sold by Agricultural Bank of China also disclosed its participation in public offerings and new funds. The fourth financial management product of “Agricultural Bank Progress” technology innovation, which was launched on March 19th, stated in the product introduction that the product has the opportunity to earn shares on the Science and Technology Board by configuring new public funds to participate in the Science and Technology Board. The secondary market price difference and the investment income of the science and technology board. All invested funds participate in the play of newly allocated stocks using the first day sell strategy.
“The outsourcing business of the bank’s wealth management subsidiary is still the first choice for public offerings, and the two have had stable cooperation in the past,” Jia Zhi said. Regarding whether financial management subsidiaries have a preference for the choice of cooperative fund companies, Yang Jiaxing believes that it will definitely be. “He said that in the initial stage of the establishment of financial management subsidiaries, subject to the process of team formation, they must inevitably carry out multiple outsourcing business expansion products Line, even in the future when the team is relatively complete, there will still be a variety of outsourced projects carried out in wealth management subsidiaries, and fund companies rely on 20 years of accumulation and have rich experience in the bond market and equity market. It will definitely be one of the choices for financial management subsidiaries to carry out outsourcing.
“Because, like the bank consignment foundation has a white list, the wealth management subsidiary’s outsourcing business will inevitably favor medium and large fund companies with perfect corporate governance, large team size and stability. The size of the wealth management subsidiary It will make the fund company’s head effect more obvious. “Yang Jiaxing said.
Beijing News reporter Zhang Shuxin Editor Zhao Ze Proofreading Liu Baoqing