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(Original title: Hybrid funds have experienced net redemptions for 14 consecutive quarters. Is it unfair that they have been abandoned by investors? How to regain market trust?)

Cailianshe News, August 13 (Reporter Li Di)In recent years, under the market fluctuations, hybridfundIt is facing significant challenges and there are many doubts in the market. Since 2021, hybrid funds have suffered net redemptions for 14 consecutive quarters. Some hybrid funds with poor performance in the market have also been abandoned by the market, and have issued liquidation warnings or are officially heading for liquidation.

The equity position allocation of hybrid funds is relatively flexible, and investors also expect fund managers to reduce losses by flexibly adjusting equity positions. However, due to the general lack of asset allocation capabilities of fund managers, hybrid funds have generally failed to meet investor expectations in the past few years. Industry insiders believe that fund companies and fund managers need to conduct in-depth reflection and continue to improve their professional capabilities in timing, risk control, etc. in order to regain the trust of investors.

Worse than stock funds, hybrid funds have suffered net redemptions for 14 consecutive quarters

Data from the Ji'an Jinxin Fund Evaluation Center shows that in 2023, the average loss of mixed funds was 10.04%, and the average loss of stock funds was 11.86%; in 2022, the average loss of mixed funds was 15.67%, and the average loss of stock funds was 20.46%; in 2021, the average profit of mixed funds was 8.68%, and the average profit of stock funds was 9.97%.

Although hybrid funds suffered less overall losses than stock funds in 2023 and 2022, they suffered more severe redemptions than stock funds because they failed to meet investor expectations. "Since hybrid funds have more flexible equity position adjustments, investors expect fund managers to reduce losses by reducing equity positions in a bear market. However, in the past few years, due to poor asset allocation capabilities, most hybrid fund managers have failed to meet investors' needs," said a senior public offering channel person.

According to data from the Ji'an Jinxin Fund Evaluation Center, as of the end of the second quarter of this year, hybrid funds have experienced net redemptions for 14 consecutive quarters since 2021, with a cumulative redemption of 1978.231 billion shares. In the past 14 quarters, stock funds have only experienced net redemptions in 9 quarters and net subscriptions in 5 quarters, with a cumulative net redemption of 117.091 billion shares.

Overall, in the past 14 quarters, due to the poor market, both hybrid funds and stock funds have shown a net redemption trend. But it is worth noting that the net redemption trend of hybrid funds lasted longer than that of stock funds, which reflects that investors have weaker confidence in hybrid funds.

Some hybrid funds are abandoned by investors

Specifically speaking of individual products, some hybrid funds have been abandoned by investors, and have issued liquidation warnings or formally entered the liquidation process. Recently, hybrid funds such as Hengyue Quality Life Hybrid Initiated Fund and Penghua Zhehua One-Year Holding Period Hybrid Fund issued liquidation warnings, and hybrid funds such as Baoying Xiangze Hybrid Fund and SDIC UBS Antai Hybrid Fund officially entered the liquidation process.

Taking Hengyue Quality Life Hybrid Launch Fund as an example, as of August 12, the return of Hengyue Quality Life Hybrid Launch Fund this year was -18.68%, and the return in the past two years was -53.67%. The investment portfolio ratio of this fund is limited to 60%-95% of the fund assets in terms of stock assets (including depositary receipts). In the past two years, the stock position of this fund has been relatively high. Except for the first quarter of this year, the stock position of this fund at the end of each quarter in the past two years has exceeded 85%.

There are also hybrid funds that fail to be established during the issuance stage due to lack of investor confidence. Since the beginning of this year, hybrid funds such as China Life Anbao Shengheng Balanced Hybrid and Yuanxin Yongfeng Xingsheng Hybrid have failed to be issued.

Regarding the difficulties that hybrid funds are facing today, some industry insiders analyzed that for investors with lower risk appetite, pure bond funds have become more popular in recent years, while hybrid funds and stock funds are not favored by the market because they have more positions allocated to equity assets.

As for investors with higher risk appetite, they are more inclined to chooseETFThe popularity of ETFs has led to an increase in the subscription volume of stock funds, which has led to a better net redemption of stock funds than mixed funds. This shows that even those investors with a strong risk tolerance are more inclined to choose stock funds with a more certain equity position, while mixed funds with a more flexible equity position are relatively less popular.

Hybrid funds are questioned, fund managers should strengthen their timing and risk control capabilities

During the market turmoil in the past few years, hybrid funds have failed to demonstrate the advantages of flexible allocation and have failed to meet investors' expectations, which has also aroused market doubts.

Ji'an Jinxin believes that it is time to seriously reflect on the situation that hybrid funds are flexible in positioning and even more flexible in operation. The agency pointed out that "after the stock market crash in 2015 and the circuit breaker in 2016, fund companies attributed the fund's losses to the 80% position limit of stock funds because the contract requires that they cannot reduce their positions and will lose money. Therefore, starting from 2016 and 2017, 0-95% flexible allocation and hybrid funds have grown wildly, and many such products have been issued under the pretext of asset allocation. However, in fact, many fund managers of such products still do not choose the right time, and they may not be able to tell whether they are managing flexible allocation or stock funds. Regardless of whether they are flexible allocation or stock funds,StockFund managers who are more debt-oriented are still enthusiastic about fully investing in stocks, and it is more difficult for investors to discern the risk-return characteristics of such products. "

The agency also emphasized that facts have proved that the management capabilities of public offering funds' mixed funds in the past three years have not reflected the fund industry's professional timing, stock selection and risk control capabilities. As for the role of asset allocation, it is even less obvious. Products that can make money continuously and stably are one in a thousand. Mixed funds must show their real skills in timing and drawdown control.

The senior channel person mentioned above also pointed out that hybrid funds actually require very high active management capabilities from fund managers, and most of my country's public fund managers' asset allocation capabilities are insufficient. "A few years ago, hybrid funds were very popular for a while, and funds labeled as flexible allocation were easier to sell, so some fund managers who did not have the ability to choose the right time also went to issue hybrid funds, and these fund managers have not performed well in the past few years. Now, many investors in the market do not trust the ability of fund managers. The industry allocation and stock selection capabilities of many fund managers are questioned, not to mention the ability to allocate major asset classes, so hybrid funds are not popular either."

The person believes that fund companies need to help fund managers position themselves. If they insist on running mixed funds, they should improve their asset allocation capabilities. If their capabilities are insufficient, they should focus on stock funds and transform to research industry and individual stock allocations.