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China News Service, August 15 (Zhou Yihang) Recently, a number of fund companies announced a reduction in the fees of their funds and increased efforts to reduce fees, which attracted market attention.

Since the beginning of this year, 120 funds (only the main code is counted, the same below) have lowered their fund management fee rates. In this regard, an industry insider said in an interview with "V View Financial Report" (WeChat ID: VG-View),Lowering fund fees can enhance the competitiveness of products among similar products, promote diversified allocation of investors' funds, and be conducive to the stable and healthy development of the public fund industry.

　　Several fund companies announced fee cuts

The reduction of public offering fund fees is still being promoted. In July last year, the China Securities Regulatory Commission issued and implemented the "Public Offering Fund Industry Fee Reform Work Plan", requiring public offering funds to reduce the management fees and custody fees of active equity fund products to below 1.2% and 0.2%; this year, in addition to the continued reduction of fees for active equity funds, some bond funds and money market funds have also joined the ranks of fee reduction.

Specifically, on August 12, Penghua Fund issued an announcement, announcing that it would reduce the fees of its Penghua Anrui two-year holding period mixed fund, reducing the annual fund management fee from 0.6% to 0.4%, and the annual custody fee from 0.2% to 0.1%.

On August 9, Shangyin Fund issued an announcement stating that it plans to adjust the annual custody fee rate of Shangyin Juzengfu Regularly Opened Bond Fund from 0.1% to 0.05%; on August 1, Tongtai Fund also announced that it would reduce the custody fee of Tongtai Taihe 3-month Regularly Opened Bond Fund from 0.1% to 0.08%.

In terms of money market funds, Dacheng Fund also announced on August 8 that it would adjust the annual custody fee rate of Dacheng Money Market Fund from 0.07% of the net asset value of the fund to 0.05% of the net asset value of the fund.

Wind data shows that as of August 12, 120 funds have lowered their fund management fees this year, 112 funds have lowered their fund custody fees, and 82 funds have lowered both their management fees and custody fees.

In addition to lowering management fees and custody fees, some fund companies have also lowered fees in the fund sales process. On August 13, GF Fund announced that it would reduce the annual sales service fee rate of five funds, including the newly established GF CSI 300 Exchange Traded Open-End Index Link Fund Class F shares, from 0.1% to 0.01%, which is equivalent to a 10% discount.

While reducing management fees and custody fees, China Merchants Fund's China Merchants Star Conservative Allocation Mixed Fund also announced that it would reduce the annual sales service fee rate from 0.4% to 0.1%.

In the view of Tian Lihui, dean of the Institute of Financial Development at Nankai University, the fund companies' move to lower fees is aimed at reducing investors' investment costs, enhancing public investors' confidence in the public fund market, and thereby attracting more capital inflows.

"Lowering fund fees can enhance the competitiveness of products among similar products, increase investors' actual returns, increase asset size, promote diversified allocation of investors' funds, and is conducive to the stable and healthy development of the public fund industry," Tian Lihui added.

　　What is the impact of distribution channels?

In addition to fund companies, fee reductions have also spread to fund sales agencies. In July this year, China Merchants Bank announced a comprehensive preferential policy of 10% off the purchase fee rate for agency sales of public offering products, covering all online and offline channels, all fund types, and subscription fee types; before that, third-party sales agencies such as Ant Fund also realized the normalization of 10% off the subscription fee rate for all fund types on the platform.

At present, the China Securities Investment Fund Association has not disclosed the sales volume of public funds held by fund sales institutions in 2024. According to the data at the end of 2023, the top three fund sales institutions are China Merchants Bank, Ant Fund and Tiantian Fund, and the corresponding "stock + mixed public fund holdings" are 502.8 billion yuan, 459.2 billion yuan and 402.9 billion yuan, respectively, a year-on-year decline of 18.96%, 19.61% and 13.49%, respectively.

In terms of the scale of non-monetary market public funds held, data from the China Securities Investment Fund Association showed that as of the end of 2023, Ant Fund, China Merchants Bank, and Tiantian Fund ranked the top three in "non-monetary market public funds held", with scales of 1.2723 trillion yuan, 773.5 billion yuan, and 549.6 billion yuan, respectively. Compared with the same period last year, the scale of Ant Fund and China Merchants Bank increased slightly, while the year-on-year decline of Tiantian Fund was 5.97%.

"Affected by factors such as market fluctuations, the number of newly issued funds on the market is relatively small, and the overall scale is in a downward trend." Yang Delun, chief economist of Qianhai Kaiyuan Fund, told "V View Financial Report" that third-party sales agencies are trying to enhance the competitiveness of fund products by "reducing fees" based on the background of stock game and increased difficulty in acquiring customers.

As for the impact of fee reduction on agency sales, according to the data from Oriental Fortune's 2024 semi-annual report, the company's subsidiariesIn the first half of the year, Tiantian Fund achieved fund sales of 851.382 billion yuan, a year-on-year increase of 4.4%; however, operating income declined significantly, with revenue of 1.417 billion yuan in the first half of the year, a year-on-year decrease of 29.64%.

At the same time, Eastmoney mentioned in its semi-annual report that the company's financial e-commerce service business mainly provides fund sales services to users through Tiantian Fund. In the first half of the year, the operating income of this business was 1.412 billion yuan, a year-on-year decrease of 29.72%.

Yang Delun told "V Guan Financial Report" that although the fee reduction of distribution channels including securities companies and banks will lead to a decrease in channel revenue, lowering product rates can enhance product competitiveness, help investors reduce the cost of purchasing funds, increase investors' sense of gain and satisfaction, and increase market activity.

"The rate adjustment will bring challenges to the profit model of fund sales agencies." Tian Lihui said that fund sales agencies should actively explore innovative profit models to enhance their own competitiveness, and then launch differentiated and special services.

(For more reporting clues, please contact the author Zhou Yihang: [email protected]) (China News Service APP)

　　(The views in this article are for reference only and do not constitute investment advice. Investment is risky and you should be cautious when entering the market.)

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Editor-in-charge: Wei Wei and Li Zhongyuan