news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Text/Ren Hui

recently,China LifeSecurityfundAnnouncement: China Life Anbao Shengheng Balanced Hybrid Fund cannot take effect because it fails to meet the fund registration conditions.

The contract shows that the specific registration conditions for the fund are "within 3 months from the date of sale of the fund shares, the total number of fund shares raised is not less than 200 million, the fund raising amount is not less than RMB 200 million and the number of fund subscribers is not less than 200 people."

The fund started to raise funds publicly on April 30, 2024. As of July 30, 2024, the fund raising period expired and failed to meet the above fund filing conditions, so the fund contract could not take effect. In other words, the fund failed to raise funds successfully after the maximum fundraising period.

It is worth mentioning that China Life Anbao Shengheng Balanced Mixed Fund is the first debt-biased mixed fund that failed to be issued this year. Considering that China Life Anbao Fund is known for its fixed income funds, the failure of the issuance is surprising.

Reasons for the failure of the issuance: poor market conditions, insufficient appeal of fund managers

There are multiple reasons for the failure of China Life Security Fund Shengheng Balanced Hybrid issuance.

First of all, China Life Security Fund Shengheng Balanced Hybrid is a debt-biased fund, with bond assets as the base, but it also allocates a certain amount of equity assets, which can be attributed to the so-called "fixed income +". According to the contract, the proportion of the fund's investment in stock assets accounts for 20%-60% of the fund's assets, of which the investment in Hong Kong Stock Connect target stocks accounts for 0-50% of the stock assets.

in recent yearsA sharesThe continuous volatility and weak profit effect have made it difficult for equity funds to raise funds. According to statistics, 15 funds have failed to raise funds this year, including 8 equity funds, 4 fixed income funds and 3 FOF funds. Under such a background, China Life Anbao Shengheng Balanced Hybrid Fund is naturally affected.

However, it should also be mentioned that China Life Security Shengheng Balanced Hybrid is still mainly composed of bond assets, and China Life Security Fund is good at fixed income funds. It is surprising that it became the first bond-biased hybrid fund to fail in issuance this year.

Secondly, the lack of appeal of Huang Li and Jiang Shaozheng, the proposed fund managers of China Life Security Fund Shengheng Balanced Mixed Fund, may also be one of the reasons for the failure of the fund issuance.

According to information, Huang Li has been a researcher in the fixed income department of China Life Asset Management Co., Ltd. since 2010, engaged in bond investment, research, trading and other work. He joined China Life Security Fund in 2013 and began to manage funds in 2014, but mainly managed money market funds and bond funds.

As of now, Huang Li manages 10 funds with a total management scale of approximately 25.988 billion yuan, most of which are bond funds. The representative fund, China Life Anbao Anyu Pure Bond Half-Year Fixed-Term Bond, has a cumulative yield of 36.07%, ranking 78/567 among the medium- and long-term mixed long bond funds in the same period.

However, it should be noted that most of the debt-biased mixed funds managed by Huang Li have suffered losses, and their performance is not outstanding either in relative or absolute terms.

Jiang Shaozheng joined China Life Security Fund in July 2016, and served as an industry researcher and assistant fund manager. He started managing funds in 2021, mainly debt-biased hybrid funds. However, all five funds currently managed by Jiang Shaozheng are in a loss-making state, among which China Life Security Low Carbon Economy Hybrid Fund has lost nearly 50% in its two-year tenure.

Overall, Huang Li is a senior fixed income veteran, but his performance in the fixed income + track is mediocre. Jiang Shaozheng not only has less experience, but also has even worse long-term performance. It is not too surprising that such a combination fails to issue funds in the current market environment.

China Life Security Fund has serious "biased"

China Life Security Fund was established in 2013. It is the first fund management company in China's insurance industry. It is a professional financial management institution jointly funded by China Life Asset Management Co., Ltd. (holding 85.03% of the shares) and National Mutual Fund Management Co., Ltd. (holding 14.97% of the shares). It is the first fund management company established in China's insurance industry.

China Life Security Fund has long had a "biased" problem. As of the end of the second quarter of this year, the total management scale of China Life Security Fund was 310.127 billion yuan, of which the management scale of its bond funds was 158.351 billion yuan, the management scale of its money market funds was 136.567 billion yuan, while the scale of its mixed funds was only 6.525 billion yuan, and the scale of its stock funds was only 7.898 billion yuan.

In terms of performance, nearly 80% of the ordinary stock funds and equity-oriented mixed funds under China Life Security Fund suffered losses, among which China Life Security Low-Carbon Economy Mixed A and China Life Security Shengze Three-Year Holding Period Mixed A suffered losses of around 40%.

What is even more surprising is that the China Life Security High Dividend Mixed A, which is highly consistent with the current market style, has also suffered a loss of up to 30% in the past three years.

The poor product performance has caused certain difficulties for China Life Security Fund to issue funds. Almost all the stock funds and equity-oriented mixed funds established in the past two years are of the initiating type, with a general scale of 10 million yuan. Except for the 10 million yuan invested by China Life Security Fund itself, the rest are basically subscribed by fund managers or their own employees, with the number of subscribers ranging from 8 to 4.

For example, the China Life Security High-end Equipment Fund, which was established on February 27 this year, had a net subscription amount of only 10 million and 26 yuan, of which 10 million yuan was subscribed by the China Life Security Fund itself, and another 26 yuan came from four company employees. It once became a hot topic because the amount of external fundraising was zero.

China Life Security Fund responded that the fund company chose to deploy at a low level and use its own funds to establish an initiated fund product, mainly out of confidence in the long-term healthy and stable development of the market. The initial fundraising amount should not be the focus of attention.

However, judging from the performance of these products, the China Life Security Fund has not conveyed much confidence to investors. So far, only the recently established China Life Security Agricultural Industry Stock Launch Fund has made a slight profit, while other funds are in a loss state, with China Life Security Quality Consumption Stock Launch Fund A and China Life Security Advanced Manufacturing Stock Launch Fund A losing more than 10%.

Such a sluggish performance has also caused the market to worry about the "survival rate" of this batch of China Life Security Fund's start-up funds. It is understood that the start-up fund must stipulate in the fund contract that if the fund asset size is less than 200 million yuan three years after the fund contract takes effect, the fund contract will automatically terminate and cannot be extended by convening a shareholder meeting.

Judging from the latest data, this batch of start-up funds of China Life Security Fund has not seen significant growth in either scale or share, and there is still a long way to go before it can reach a scale of 200 million yuan.

There is also an embarrassing data. The China Life Security Preferred State-owned Enterprise Initiator was established on October 24, 2023, and the number of subscribers at the time of issuance totaled 5. As of the end of 2023, the product has only increased by 2 households compared to the time of establishment, and the number of shares has only increased by 76 compared to the time of issuance.

New ChairmanYu YongCan it lead China Life Security Fund to break through?

On January 19, China Life Security Fund issued an announcement on the change of chairman. Wang Junhui resigned from the position of chairman due to work adjustments, and his resignation date is January 17, 2024. China Life Security Fund also announced the appointment of Yu Yong as the new chairman.

Yu Yong has extensive experience in the insurance industry, having worked for China People's Insurance Company, Chinalife insuranceFrom March 2009 to February 2010, he served as Marketing Director (Deputy General Manager Level) of Hong Kong Branch of China Life Insurance (Overseas) Company Limited. From February 2010 to April 2016, he served successively as Party Committee Member, Assistant to the President and Party Committee Member and Vice President of China Life Insurance (Overseas) Company Limited. From April 2016 to August 2023, he served successively as Party Committee Member, Assistant to the President and Party Committee Member and Vice President of China Life Asset Management Company Limited. From August 2023 to date, he has served as Deputy Secretary of the Party Committee and Vice President (in charge of work) of China Life Asset Management Company Limited.

In December last year, Yu Yong said in an interview with the media that in terms of allocation, he would always focus on the long-term, sustainable and stable use of insurance funds. In the current context, the value of equity asset allocation is more prominent. After the previous market adjustment, the valuation of A-shares is not high, which provides a large safety margin for long-term insurance investment. We will maintain an active allocation center, seize strategic allocation opportunities, and continuously optimize the position structure.

Judging from the development in the first half of the year, China Life Security Fund still failed to have many highlights in equity investment.

According to iFinD data, as of June 30, the total size of China Life Security Fund Management was 310.127 billion yuan, an increase of 39.441 billion yuan compared to the end of 2023, but the management scale of stock funds and mixed funds decreased by 935 million yuan and 1.414 billion yuan respectively, while bond funds and money market funds increased by 27.361 billion yuan and 14.453 billion yuan.

In terms of performance, China Life Security Fund currently has 32 ordinary stock funds and equity-oriented mixed funds in total, but 26 of them have suffered losses since the beginning of this year, accounting for as high as 81.25%, and 21 of them have underperformed the equity-oriented mixed fund index (-10.2%), accounting for as high as 65.62%.