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China Fund News reporter Li Shuchao and Zhang Ling

Less than half a month after the release of the fifth batch of personal pension wealth management products, the three newly added personal pension wealth management products have all been established.

Industry insiders said that personal pension financial products have advantages such as tax incentives, low fees, and stable returns. In the future, as residents' demand for pension financial management continues to grow, personal pension financial products will still have a lot of room for development.

All 3 new products were established

On July 23, the official website of ABC Wealth Management showed that the company's personal pension wealth management product - ABC Wealth Management ABC Shunxin Lingdong 540-day fixed-income RMB wealth management product, has a subscription period from July 10 to July 22 this year and is scheduled to be officially established on July 23.

With the establishment of ABC Wealth Management's personal pension wealth management product, the number of personal pension wealth management products in the entire market will reach 26.

On July 10, China Financial Network released the fifth list of personal pension wealth management products, with one new product added to each of ABC Wealth Management, BOC Wealth Management, and China Post Wealth Management. Among them, China Post Wealth Management Tianyi Hongyuan Minimum Holding 365 Days No. 1 RMB Wealth Management Product is a hybrid wealth management product, and the other two are fixed income products. At the same time, all three products have set a minimum holding period to encourage investors to invest for the long term and improve the stability of the investment portfolio and the consistency of the investment strategy.

On July 17, China Post Finance released an announcement stating that China Post Finance Tianyi Hongyuan Minimum Holding 365 Days No. 1 RMB wealth management product will be sold to investors nationwide from July 10 to July 16. According to the relevant terms of the product manual, this wealth management product was established on July 17, with a fundraising scale of 1.304 million yuan, and the product maturity date is December 31, 2099.

Bank of China Wealth Management's "Fu" (5 years) minimum holding period fixed income enhanced wealth management product was launched to investors on July 10 and was officially established on July 11. The product raised a total of 3.8903 million yuan.

With the establishment of three products, the fifth batch of personal pension wealth management products has completed fundraising, providing investors with new options for their personal pension wealth management.

According to Wind data, there are currently 10 financial management companies that have launched 59 pension financial products.

When talking about the difference between personal pension wealth management products and retirement wealth management products, Zhang Jing, a senior bank wealth management analyst at Huabao Securities, said frankly that the difference between the two in investment strategy is not big, and the main difference lies in the product form. Among them, retirement wealth management products are mostly closed-end products with a term of more than 5 years; while personal pension products are all open-end products with a shorter lock-in holding period, with the shortest holding period of 1 year.

Secondly, in terms of purchase methods, Zhang Jing pointed out that according to the "Interim Measures for the Administration of Personal Pension Business of Commercial Banks and Financial Management Companies", personal pension financial products allow investors to purchase through personal pension fund accounts and other accounts. If investors purchase personal pension financial products through personal pension accounts, they can enjoy tax reduction and exemption benefits. If they do not purchase through personal pension accounts, the range of optional products will be wider, including pension financial management and personal pension financial products.

"Personal pension account funds can only be invested in personal pension financial products, not in retirement financial products." Ruizhi Xinhong Financial Research Institute added that there is no upper limit on the investment amount of retirement financial products, while the maximum annual investment of personal pension accounts in personal pension financial products is 12,000 yuan. In addition, retirement financial products all have the word "retirement", and the instructions for personal pension financial products are marked with "personal pension financial products".

Solid earnings performance

The average annualized return is 3.76%

In terms of performance, Wind data shows that as of July 18, 23 existing personal pension wealth management products have achieved positive returns since their establishment, with the highest reaching 8.11%; the annualized returns since their establishment have also been positive. Excluding products established within one year, the average annualized return is 3.76%.

The reporter noticed that while individual pension products have maintained a steady performance, they have also maintained a relatively high performance benchmark. Wind data shows that the current performance benchmark ceiling is as high as 6.25%.

In this regard, Zhang Jing said that according to regulatory requirements, pension financial products focus on operational safety and long-term value preservation. Therefore, compared with non-pension products, the product period is relatively long. From the perspective of product design, it is hoped that by extending the product period, higher returns can be obtained through long-term investment and multi-asset operation.

"The performance benchmark for personal pension wealth management products is set high. First, the minimum holding period of the product is relatively long, generally one year or more; second, the product fee rate is low," said the Ruizhi Xinhong Financial Management Research Institute.

There is still a lot of room for development in the future

Looking ahead to the future market, the institutions and experts interviewed generally believe that there is broad market space for personal pension financial products.

"Overall, the first batch of personal pension wealth management products have good returns, which will help increase their attractiveness to investors." Lou Feipeng, a researcher at the Postal Savings Bank of China, said that coupled with the fact that my country's population aging level may continue to increase in the future and residents' demand for investment in retirement, personal pension wealth management products have great room for future development.

Ruizhi Xinhong Financial Research Institute also stated that personal pension financial products have advantages such as tax incentives, rate advantages, relatively stable returns, and relatively flexible investment operations. With the advent of an aging society and the growth of people's demand for pension financial management, if the pilot is expanded in the future, personal pension financial products may achieve large-scale growth.

"At the same time, each institution should do a good job in product risk control, focus on the product's yield and stability, and build confidence in long-term investment for individual pension fund investors," the institute added.

Zhang Jing believes that at the policy level, personal pension wealth management products are in line with the country's current advocacy and promotion of the construction of the third pillar pension insurance system, but the actual development of the products depends on whether the functional design and performance of such products can be truly differentiated and attract investors to invest.

"The most important thing is to do a good job in investment research and allocate assets scientifically. While allocating fixed-income assets to stabilize returns and liquidity, you can also study the appropriate allocation of high-yield assets to increase the investment returns of personal pension wealth management products." Lou Feipeng said.

Editor: Captain

Review: Chen Mo

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