From: “People’s Daily”
Compiler: Fund China

Right now, more and more people of investment funds. Then, fund companies is how to operation? How can they help investors financial management?

The latest statistics show that as at the end of June this year, fund of the national scale has reached 1.239996 trillion copies. at the beginning of the year than the 622.067 billion in growth nearly doubled.

When more and more people become “fund investors”, the people of fund companies have approached him to a lot of curiosity : Fund companies master “fund investors,” the fund, how it works? Fund managers how to work every day, how memories? Fund companies to invest in personal investment and what’s the difference? Hence, reporter went to the Galaxy Fund Management Limited.

Construction product lines

Designing products that enable investors to choose the basis of risk preferences.

Daily 9:00, Suo Feng always punctual walked into his office — Shanghai Daming Road 908 East, the three-floor building. Desks are placed on three computers, his first move was to open three separate computers. three computers showed the trend of the market map and economic news, and internal research information. 9:30 before the stock market opened, he needs visit various kinds of information.

Galaxy fund companies as a fund manager Suo Feng currently manages Yifu Currency and Galaxy Income two fund, The first day of work and the work is to study and analyze the latest information, to grasp the macroeconomic trends and investment varieties to the market.

Rather long time to buy stocks, bonds and other financial products are personal behavior, until the birth of the Fund. At present, more and more people started to give the money to the fund management company to manage. “A person with 10,000 yuan, it is difficult to carry out the investment, but if the 50 individuals, 500 individuals have come up with 10,000 yuan together, there are 500,000 yuan, 500 million can be carried out large-scale investment, the greater the power. In other words, Fund companies are entrusted with the financial manager. important is that the fund companies through financial engineering techniques to design a series of financial products, is a wide variety of funds to allow investors to put up the money gathered through the pool operation investors gain higher and more stable returns. This is the Fund’s institutional investors such role. “Suo Feng said.

All fund companies must build product lines, product lines of the characteristics of income and risk match, is the rate of return and risk level from low to high, were direct proportion relations. Low-risk species, the rate of return is relatively low; A high rate of return products, the risk is relatively high. Fund product line from the general fund company’s product development department to design, and then by marketing departments to promote, fund raising, from the investment fund managers to operate.

Since June 2002 its inception, the Galaxy Fund companies have launched more funds products, the risks and benefits from low to high. First, the IMF, mainly government bonds, central bank bills and other low-risk products; Bonds is two products, The investment in bonds, or purchase shares in the appropriate allocation of some stocks, adding to gains; Unit 3 was designed products, The investment in stocks, some bonds properly configured. “Shares the proceeds higher than the return on bonds steady, stock gains may be higher, but the risk is larger, therefore, through various combinations to form different types of products that enable investors according to their risk preference to choose. “Suo Feng introduced.

Fund managers have limited powers

Only in the selected options and the election stocks, ST shares absolutely no collision.

Suo Feng management of the Galaxy Income Fund was established in August 2003, the current size is 800 million yuan, however, This eight hundred million how to vote not entirely up to him one person has the final say, and outside of the company he has many constraints.

From the outside, there are many laws and regulations and regulatory departments issued by the management approach to the constraints, There Fund contracts, fund companies must act in accordance with the contractual obligations; from the inside, Galaxy fund companies have formulated a strict investment management process, Meanwhile, independent risk control departments of the Fund’s investment operations monitored.

Galaxy Income Fund to invest mainly in bonds, but from 800 million the amount of funding allocated to purchase bonds show how much funding the purchase of the stock, nor is Suo Feng the final say. When the fund issued contracts of the Fund represent a clear agreement to purchase the stock ratio is 0% -30% Bonds will at least not less than 50%. Because it is an open-end fund, which has 800 million is not entirely for investment, had to leave part of the cash deal with the customer may at any time redeem.

Galaxy Fund investment policy committee, once every quarter, against macroeconomic and market development, Identify each Fund’s asset allocation ratio. Recently, for example, a member of the investment decision, Galaxy Income Fund third quarter of the equity investment ratio of 10% -30% for the remaining bonds. When this ratio is determined, the fund managers have a certain amount of room and scope. This fund of funds allocation is 70% bonds, 20% stocks.

For bonds, Suo Feng present mainly in short-term instruments, less risky, such as three months of central bank bills, and so on. Bond options are quantitative modeling support, based on national interest rate trends, as well as the distribution of the amount, duration, etc. to judge.

As for the stock, “what stocks to buy, my power is limited.” Suo Feng said. Galaxy Fund’s research department, according to various research for the establishment of a stock, which includes four sub-database : Featured basement, the option to restrict the ban to buy storage and the purchase. “My mandate is the best and choose the alternative, the election of this election is that the stock, I have a certain amount of leeway. However, those on the prohibition of the ST shares is absolutely untouchable, Otherwise, risk control departments, people would immediately come to her for help. If we choose to limit to buy shares of the stock, Companies will have to go through a series of approval processes. ”

To prevent risks, in addition to the Galaxy fund companies, markets, investment, and other departments also have an independent risk control departments, fund managers operating in this sector are under the surveillance and control. Galaxy Fund senior manager in charge of risk control, Dr. Wu Lei added : “The aim of this is only one, ensure the security of investments. ”

Focus on value investing

Fund managers are not busy with the daily operations, but focused on long-term investment.

Though responsible for the investment fund managers, but not Suo Feng busy day operation, even many days do not have to operate, it seems, and not imagined by the busy, Only a few days a month to operate a concentrated period of time, the rest of the time is just fine-tuning.

“It is because we have the full stock options on the basis of sectors which have been the performance, quality stocks, In a quarter are relatively stable, so we do not attach importance to the rise and fell in a short period of time, Only when the stock exceeded our expectations in many cases, we will temporarily dished out, It fell after the choice of buying. “Suo Feng said.

And individual investors is the biggest difference, the Fund’s investment team is relying on the wisdom, and every time decision stress are based on an objective and rational, rather than chest thumping. “Pay attention to long-term investment, and focus on rational investment value of investment, which is the largest fund companies features.” Wu Lei analysis.

Nevertheless, the pressure on fund managers still very big. Every day, the office computer showed the company all the proceeds of the Fund. Meanwhile, all domestic funds every day rankings. “When you see a daily list, the fund manager can not be any pressure.” Galaxy fund company secretary Luo Qiong sighed.

Fund managers from the pressure to invest in the trust responsibility. “Fund companies operating objectives pursued a variety of interests of harmony and unity : fund holders maximum benefits, maximization of the interests of shareholders, companies and staff development to maximize the ‘Three of’, Galaxy always fund holders maximize the benefits first place, this is our most treasured, is the most we feel the pressure. “Wu Lei analysis. Galaxy Fund was established five years, the size of companies expanding steadily, and to date has developed five branches.

Fund management companies to invest in upgrading the capacity sooner, the higher the stability that institutional investors are quickly becoming mature. This healthy capital market development, and to individual investors in finance and investment are good news. Mature capital markets, the need to mature institutional investors, which is to become a reality.

Copyright Fund China 2009.

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