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China Fund News reporter Wu Jun

New personal pension financial products are available.

Personal pension financial products expand again

On July 10, China Financial Management Network released the fifth batch of personal pension wealth management products. This time, ABC Wealth Management, BOC Wealth Management, and China Post Wealth Management each added one product, and all set up exclusive L-class wealth management shares for personal pensions; among them, two are fixed-income products and one is a mixed product, with risk levels of two or three, and a moderate level of risk.

It is worth noting that the three new personal pension wealth management products have set a minimum holding period to encourage investors to invest in the long term and improve the stability of the investment portfolio and the consistency of investment strategies.

Specifically, the"ABC Shunxin Lingdong 540-day fixed-income RMB wealth management product", medium-low risk level, the minimum investment amount is 1 yuan, and the performance benchmark is 3.20% to 3.70%; the product mainly invests in money market instruments, bonds, etc., and allocates equities and derivative assets according to market conditions.

China Post Finance launched"Tianyi Hongyuan No. 1 RMB financial product with the shortest holding period of 365 days"It is a hybrid product with a medium risk level and a performance benchmark of 2.30% to 4.30% (annualized). The product mainly invests in fixed-income assets such as money market instruments and bonds to contribute basic returns, and appropriately allocates equity assets such as stocks (including preferred stocks), securities investment funds, and various asset management products or plans according to market conditions to enhance returns, while appropriately participating in financial derivative transactions for hedging purposes.

Bank of China Wealth Management launched"BOC Wealth Management 'Fu' (5 years) shortest holding period fixed income enhanced wealth management product"The risk level is medium-low risk, and the performance benchmark of Class L shares is 3.50% to 5.50%. The product mainly invests in fixed-income assets such as bonds and money market instruments, and allocates a small amount of equity assets through investment funds and stocks, while appropriately participating in financial derivative transactions for hedging purposes.

The three new personal pension wealth management products launched this time have preferential treatment in terms of fixed management fees, sales service fees, etc. Market insiders believe that the reduction in fees highlights the attribute of inclusive pension.

The number of personal pension financial products has increased to 26

On November 25, 2022, the individual pension system was launched in 36 pilot cities or regions including Beijing, Shanghai, Guangzhou, Xi'an, and Chengdu. In February 2023, the first batch of individual pension wealth management products were launched, and 7 individual pension wealth management products from ICBC Wealth Management, ABC Wealth Management, and China Post Wealth Management were officially launched.

According to information disclosed by China Financial Management Network, there are 23 commercial banks and 11 financial management companies on the list of personal pension institutions. So far, according to the Banking Financial Management Registration and Custody Center, there are 19 commercial banks in the market that sell 23 personal pension financial products, and investors have purchased a total of more than 4.7 billion yuan.

Since the beginning of this year, investors' enthusiasm for subscribing to personal pension wealth management products has increased significantly. Compared with the cumulative purchase amount of over 1.2 billion yuan when the fourth batch of personal pension wealth management products were launched in December last year, the cumulative investment amount has exceeded 4.7 billion yuan as of July 10 this year when the fifth batch of product expansion announcement was issued. In other words, in about 7 months, the purchase amount of personal pension wealth management products has increased by about 3.5 billion yuan.

Including the three latest products, as of July 10 this year, the total number of personal pension wealth management products has reached 26. Among them, ICBC Wealth Management has the largest number of products issued, reaching 8; BOC Wealth Management has issued 6, and ABC Wealth Management has 5; China Post Wealth Management, CCB Wealth Management, and BlackRock CCB Wealth Management have 4, 2, and 1 respectively.

In terms of investment types, personal pension wealth management products are still dominated by fixed-income products, reaching 22, and there are 4 mixed products. Many products have set up special sub-shares for personal pensions, marked by B shares and L shares.

From the perspective of investment style, most personal pension wealth management products adopt a "fixed income +" strategy, mainly relying on assets such as bonds as a base to obtain basic income, and then increasing income through moderate allocation of equity products such as stocks and funds, or appropriately using derivatives for hedging.

Editor: Xiaomo

Review: Xu Wen

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