news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Elderly care has always been a topic of concern to the whole society.

Especially with the introduction of individual pension accounts, young people's retirement concepts are slowly changing. In addition to changes in demand, the supply of pension products is also constantly enriching.

Recently, the China Securities Regulatory Commission updated the "Individual Pension Fund List" as of the end of June, which includes a total of 193 pension target funds. Compared with the data at the end of March, the number of products in the "Individual Pension Fund List" increased by 7 and decreased by 1.

By further distinguishing these 193 products, we can find that there are 74 pension target funds with risk-return characteristics positioned as "conservative", accounting for nearly 40%.

When planning retirement, people prefer stable funds

The second quarterly report of the fund has just been released. Wind data shows that as of the end of the second quarter, the total size of pension target funds was about 64.5 billion yuan. Among them, the size of pension target funds with the word "stable" in their names was nearly 32 billion yuan, accounting for nearly half, and is a product category that investors prefer for pension investment. (Data source: Wind, as of June 30, 2024)

As a major investment category in personal pension accounts, public fund products currently give priority to eligible pension target funds.

Many investors may be unfamiliar with retirement target funds. Simply put, retirement target funds are aimed at pursuing long-term and stable appreciation of retirement assets. They are operated in the form of FOF (fund of funds), and their main investment targets are other fund products on the market.

Further subdivided, retirement target funds can be divided into target date funds and target risk funds. Among them, target date funds are set based on the years before and after retirement. For example, if the retirement year is anchored, the product name is generally "Retirement Target 2050". Its biggest feature is that as the retirement year approaches, the proportion of equity assets continues to decrease, while the proportion of non-equity assets continues to increase.

Target risk funds are currently divided into three categories: active, balanced, and stable, and the risk level is gradually decreasing. Active products generally have a high equity ratio and a relatively large drawdown level; stable products have a lower risk level, and generally have an equity asset position between 20% and 25%, with a relatively small drawdown; balanced products have an equity position between active and stable types.

According to the updated "Personal Pension Fund List" by the China Securities Regulatory Commission as of the end of June, the list includes a total of 193 pension target funds, 117 pension target risk funds, accounting for 60%, far more than the target date funds. Among them, there are 74 pension target funds positioned as "stable", accounting for nearly 40% of the list.

Currently, BOC Fund has three products included in the first batch of individual pension fund lists.BOC Ankang Stable Retirement Target One-Year Holding Period Mixed Fund (FOF) It is a fund with relatively stable risk-return characteristics.

To achieve relatively stable goals, clear positioning is only the first step. In addition, the product needs to better control drawdown during operation.

It is understood that the FOF team of Bank of China Fund implements full-process drawdown control in product management. Not only do the core funds in the base portfolio need to examine the maximum drawdown, but the investment portfolio after penetration also needs to undergo scenario analysis and stress testing, and timely dynamic adjustments will be made when the correlation and volatility of major asset classes change.

An investment team with a platform, a system and practical experience

On the one hand, the whole process of drawdown control tests the management ability of the fund manager, and on the other hand, it requires the strength of the team and the company platform.

BOC Fund started its FOF investment business early and has continuously improved its investment research capabilities. In recent years, relying on the resource-sharing asset allocation platform of BOC Fund Center, combined with the company's quantitative team and quantitative timing system, the FOF team has obtained full and comprehensive model and data support.

In the fund selection part, team members will use quantitative and qualitative analysis to find the sources of excess returns and risk-return characteristics of sub-funds; in portfolio management, the FOF investment team will conduct refined portfolio management through position penetration + factor exposure + stress testing, attach importance to the offensive and defensive capabilities of the portfolio, and achieve this through the reasonable deployment of sub-funds.

Rich product line, providing more choices

As one of the fund companies that started to deploy pension funds earlier in the market, BOC Fund has continuously improved its pension product layout. As of now, it has three pension target risk funds and two pension target date funds.

The three target risk products cover two major risk characteristics: prudent and balanced. In addition to the above-mentioned BOC Ankang Prudent Retirement Target One-Year Holding Period Mixed (FOF), there is also BOC Tianxi Fenglu Prudent Retirement Target One-Year Holding Period Mixed (FOF), which is also positioned at prudent risk characteristics, and BOC Ankang Balanced Retirement Target Three-Year Holding Period Mixed Launch (FOF), which is positioned at balanced risk characteristics. The two target date products are mainly aimed at people who retire around 2035 and 2050.

These products of different types and positioning provide investors with more options for retirement planning.

In general, retirement is a long-term thing and something that needs to be planned in advance. Choosing an asset manager who can clearly identify risks, has experience and systems, and pursues long-term and stable development is expected to ensure the safety and stability of personal pension assets.

risk warning: Funds are risky and investment requires caution. The fund manager manages and uses fund assets in accordance with the principles of due diligence, honesty, credibility, prudence and diligence, but does not guarantee that the fund will make a profit or guarantee a minimum return. In a few extreme market conditions, fund investments may result in the loss of all principal.The past performance of the fund does not indicate its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the performance of this fund. The name "pension" of the pension fund does not represent a guarantee of returns or any other form of return commitment. Pension target funds do not guarantee principal and may incur losses. Historical situation does not constitute any guarantee for the future, and the historical maximum drawdown does not constitute any guarantee for the manager's risk management capabilities.The fund manager's internal drawdown control target does not constitute any guarantee for the actual risk management capabilities in the future. Before making an investment decision, investors should carefully read the fund contract, prospectus, product information summary and other documents to understand the specific situation of the fund, and judge whether the fund matches the investor's risk tolerance based on their own investment objectives, investment period, investment experience, asset status, etc., and complete the matching test between risk tolerance and product risk in accordance with the requirements of the sales agency.Class Y shares:Class Y shares are a separate share category established by this fund for the personal pension investment fund business. The subscription and redemption arrangements, fund account management and other matters of Class Y fund shares should also comply with the relevant provisions on personal pension account management. Unless otherwise specified, the purchase of Class Y fund shares of this fund must come from the investor's personal pension fund account, and the redemption of Class Y fund shares must be transferred to the personal pension fund account. Investors cannot receive personal pensions if they have not reached the age of receiving basic pensions or other conditions for receiving them as stipulated by the policy. The fund products that can be invested in by personal pensions must meet the relevant conditions required by the "Interim Provisions on the Provisions on Personal Pension Investment Fund Business". The specific list will be determined by the China Securities Regulatory Commission and announced every quarter through relevant websites and platforms. During the operation of this fund, it may be removed from the list due to non-compliance with the relevant conditions. At that time, this fund will suspend the subscription of Class Y shares, and investors may face the risk of not being able to continue to invest in Class Y shares.

Cover image source: Visual China-VCG41N1162556855