By Wang Donglin

GUANGZHOU (Fund China) – The first half of 2007, the money market funds reached 1.199 billion yuan of total revenue, operating results reached 8.8 billion decline than the same period last year. But growth in net money market funds have significantly improved; Revenue from the structure, the money market funds sources of income change from passive to active, positive use of the IPO to repurchase operation, and optimize the structure of the revenue. Overall, the money market funds improve profitability.

Net growth increased

This one, second-quarter money market funds average net growth rates respectively 0.54% and 0.63%, respectively, for the same period last year and 0.45% and 0.46%. The first half of the overall growth in net money market funds raised 0.26 percentage point.

An increase in income from the money market funds sources, first of all, the money market yield is the overall level of uplift, raising the money market funds yield. Second, the money market funds initiative to create new revenue sources, in particular the use of the timing of the IPO repurchase operation.

The active IPO market to the money market funds size of the volatility has increased, while money market funds provide for a number of new investment opportunities. The majority of the money market funds said that actively participated in the IPO market led to a marked increase in the rate of exchange repo market.

Revenue structure optimization

Money market funds revenue structure has been a distinct optimization, reflected in the bank deposit interest income significantly reduced, the sale of the securities bought back a significant increase in revenue.

First, the money market funds initiative to reduce bank deposits and other passive investment assets. Second, raise the level of the yield, some of the bond interest rates increase substantially. Money market funds first half of 907 million yuan bond interest income, rose 75.6%, while bond interest income last year rose only 56.7%. Again, as the money market funds’ IPO timing of repurchase operations, the money market funds buy back the securities sold part of a significant increase in revenue.

Copyright Fund China 2009.

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