GUANGZHOU (Fund China) - We want to fast in a lucrative market, when the wealth effect dissipated when the funds will be faithful to you? This market is the most recent topic of concern, and even more doubtful that the main focus in the open-end fund of funds above. Because once the flow of holding more than one third of the market value of securities investment funds have forced a tight funds to meet redemption through shipments, the continuing bull market continue to hope will be facing a halfway mortality nightmare. As of last Friday, 45 fund net below face value, in addition to the money market funds, capital preservation funds and bond funds, 277 funds over the past three months only 27 funds make money, the net value of the Fund below one yuan will destroy people just built up the fund’s trust?

Quietly balance tilted in the direction change

“We found no obvious abnormalities redemption, the redemption of the so-called no signs of a wave, very calm.” Reporters last Friday investigating a number of fund companies of different sizes, the general manager in charge of the market and fund managers are given this answer.

But last week, the market has already begun and some of the media spread the apparent redemption of the voice, so that fear of a reversal funds investors appeared more worried. At the same time, the recent investment performance of fund performance statistics are a reminder that, although no obvious signs and official data on the scale of the purchase, redemption has been apparent tilt, but this kind of calm with the Fund may continue to shrink and the net been broken. Reporters interviewed some of the fund managers share this view, they think that if the market continued to fall this week may trigger some fund investors redeem impulse.

“With the continuing adjustment in the market, the wait-and-see attitude investors are serious, the bank sales channel view of the recent market conditions wide shocks, but also does not want to do too much promotion.” Market participants said .

“From another perspective, this change is a normal phenomenon, before frenzied fund investors buy fund is a kind of irrational and immature performance is unlikely to become the norm.” ICBC Credit Suisse total marketing channels supervisor Qin Hong analysis. ICBC Credit Suisse is currently concentrated application of unbundling fund - ICBC Credit Suisse Core Value Equity Fund, although the brand has good advantages and channels, but the first day of the purchase of only 1 billion yuan.

The current can be sure that, even with the recent approval of the management split, the name of restructuring funds concentrate purchase volume increased, but the pace of capital inflows Fund has begun a marked slowdown, investors in the fund mentality of blind obedience to obvious changes had occurred.

Fund earning power decline

The slowdown in the purchase, at the same time, the balance of the funds will be redeemed is the key to breaking the quantity, and trigger a large-scale redemption Where is the driving force? Many fund managers believe that ultimately trigger a large-scale fund investors the factors or redemption of the trust fund crisis, and the fuse is likely to shrink after consecutive net short-term rebound.

This year’s “5 30″ tells collapse of stock investors and fund investors, increased volatility in the stock market when the fund is a relatively safe investment channels, stock investors ultimately lost as institutional investors or fund managers. This result led to the open-end fund ushered in the year of purchase, the largest upsurge, a considerable proportion of stock investors turned into a fund holders, many fund companies at this stage split by the fund and the proportion of dividends “one yuan fund “concentrate on the application form, doubling the size of asset management, as inflow of funds by fund managers quickly converted into shares, investment funds focused on the stock market once again become the benchmark.

But now a lot of people may have felt the impulse to their regret. “Fund means to make money to buy”, “Fund will be able to certain resistance decreased,” Fund myth in the market fell in the past month have shattered.

According to China’s Galaxy Securities Research Center Fund as at last Friday’s open-end fund net statistical data found, to November 23, a total of 45 funds below one yuan net (4 QDII fund net last Tuesday by the data published by Statistics) these four funds net below 0.9 yuan mark, as at November 16 this data also only 28.

According to a statistics, over the past three months in addition to the money market funds, capital preservation funds and bond funds, the statistical scope of 277 funds within, only 27 fund’s net growth rate was positive, with Bosera Thematic Industries Fund to 7.12% of net the highest growth rate, the lowest growth in the net value of the fund for -14.68%. Other types of funds over the past month, the average net rate of -7.66%, three-month average growth rate of -3.80% in the net.

“This at least shows that the fund as a professional institution, the success rate of investment funds than individual investors, it does not mean that will not lose.” China Galaxy Securities Fund Research Center senior analyst Wang Qunhang that the fund are too blind obedience should re-examine their own conduct. In Wang Qunhang It appears that if the “5 30″ is the theme of adjustment stocks bubble burst, but this time the adjustment is mainly of institutional investors led by blue chips bubble burst. Too hasty, regardless of the A-share or QDII above, the same fund managers showed the irrational side.

The market crash, fund companies are still patiently?

Reporters observed that the main market as fund companies, from layer to the operating fund managers seem to have appeared expected tension and anxiety, which also gave the market confidence in other types of investors: as long as the fund companies have patience, and the stock market adjustment will not out of control. Irrespective of these views is correct, but the market fell before the fund companies have patience because we deserve careful analysis.

Wang Qunhang that pre-fund prospectuses capital inflows sufficient amount of investment funds generally maintained at about 70 percent, there is no serious in a concentrated amount of circumstances, the fund’s liquidity crisis is not urgent, small enough to meet redemption.

Many fund managers also think that the market adjustment after the previous market have emerged and gained a record high, the experience to the current fund investors believe that the market will continue to “back two enters three” and therefore not at a loss to choose redemption. While previous investor education fund investors also strengthened, “the fund is a long-term investment vehicle” concept, thus reducing the proportion of the operating band, while fund investor confidence is built on the confidence of fund managers, fund managers optimistic about the circumstances, there is still no large-scale influx of redemption.

However, some market participants that fund companies in the market adjusted to maintain a good mentality before, is an important reason for the Fund’s income from management fees, fund companies this year, the vast majority seize the opportunity to lead the rapidly expanding scale of earnings management abnormalities were substantial net losses of the fund’s little effect on the funds, and fund managers more concerned about the relative performance ranking, pressure is not obvious. But the controversial “one yuan fund purchase,” causing “do not understand fund investors” the negative effects brought about by the many fund industry does not fully understand. The current split in face value of the fund have fallen below the circumstances, the fund company should be from “the interests of investors first” point of earnest introspection.

The first wave in the beginning of this year to fund purchase upsurge temporary, economists professor Wang Zhoulian made during an interview with this reporter, corporate profits increase in the Fund’s circumstances, we should consider re-balanced fund holders, fund companies and fund managers, and other side interests, and to increase its input for the long-term healthy growth of the fund industry to do some basic work.

Wang Qunhang also endorsed the above viewpoint more. He suggested that the rapid expansion of the scale of the fund’s assets at the same time, should reconsider how to balance the fund companies, fund managers of public and the interests of the real interests of fund investors first.

In fact, this year the fund the expansion of scale, whether large proportion of dividends in on the issues of fund managers and fund holders, as well as fund companies senior obvious differences, and attention to the expansion of scale and ignore the phenomenon of corporate governance is not the case; fund manager behind the frequent replacement fund companies also highlights the internal cohesion and the lack of coordination mechanisms interests. At the same time, fund companies this year between performance to a more obvious differentiation, under the guise of unilateral bull market fund management capability gap in the current round of restructuring exposed. According to our reporter to statistics, more than 50 fund companies, the last three months have three open net positive growth for the company only China AMC, two open-end fund net positive for growth of only Bosera Fund, and some the company’s performance of the Fund at the same time highlighted the phenomenon of rapid decline in the market adjust before part of the fund’s defense capability is not optimistic. While fund investment products and homogenization of the Fund is also still outstanding, which increased funds for the negative impact of market volatility.

“Although there is still no large outflow of funds of funds signs, but from a rational point of view, fund companies should be vigilant in times of peace, cherish investors just built up to the trust fund.” Market participants such a proposal.

Copyright Fund China 2008.

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