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The annual "818 Financial Management Festival" is here again. Compared with the "various tricks" of securities institutions, this year's financial management companies' marketing is more "Buddhist". On August 18, Beijing Business Daily reporters found that only a few financial management companies launched financial management festival activities. More financial management companies focused on investor education and "called" on investors to calm down and rationally view the net value retracement performance caused by bond market fluctuations.

Low-key "hot"

Special live broadcasts, fun tests, wealth games... Unlike the hot marketing of various securities companies during the "818 Financial Management Festival", financial management companies appear to be relatively low-key. On August 18, a Beijing Business Daily reporter found that only a few financial management companies launched exclusive activities.

China Post Wealth Management launched the "Another 818, All Wealth Management Comes to See You" campaign, and recommended to investors the 88th issue of Hengli Hongyun Closed-end 2024, the 63rd issue of Anrui Hongyun Closed-end 2024, the 18th issue of Youyin Wealth Anxin Investment Hongyun Closed-end 2024, and the 44th issue of Yuexin Hongyun Closed-end 2024. The above four wealth management products are all fixed-income products with different investment periods ranging from 99 days to 1161 days. The products are mostly invested in fixed-income assets such as money market instruments and bonds.

Everbright Wealth Management also launched the "818 Wealth Management Festival" event and launched four new closed-end wealth management products. Taking Sunshine Jin Chuangli 91st (Closed-end) A as an example, the product intends to invest in assets including bonds, non-standardized debt assets, asset management products, etc. The performance benchmark refers to the average yield of China's bonds and non-standardized debt assets and the historical data of the China Bond Comprehensive Wealth Index one month before and after the issuance, and the estimated capital gains are calculated. The investment cycle is 273 days. Another product, Sunshine Jinfengli 283rd A, is a fixed-income non-principal-guaranteed floating-income type. The performance benchmark (annualized) is in the range of 2.85%-3.35%. This product adopts a stable fixed-income strategy and does not include equity assets. As of June 30, 2024, Sunshine Jinfengli series products have been issued for more than 350 issues, raising more than 300 billion yuan.

Judging from the products marketed by the above-mentioned two financial management companies, most of them are fixed-income and medium-to-low-risk products, which are suitable for investors with low risk appetite.

In comparison, other wealth management companies’ marketing is relatively low-key. They have not launched their own “818 Wealth Management Festival” activities, but have mainly focused on creating their own wealth management festivals, such as the “616 Wealth Management Festival” launched by Bank of Nanfang Wealth Management and the “518 Wealth Management Festival” by Bank of Suwei Wealth Management.

A banking industry analyst pointed out that financial management companies usually target investors with lower risk appetite, who pay more attention to the safety of funds and the stability of returns. In contrast, securities firms may launch more risky investment products involving stocks, derivatives, etc., which means they need to attract investors seeking high returns through more attractive marketing activities. Therefore, financial management companies are more inclined to attract customers through their own brand activities, while also being able to disperse marketing resources throughout the year to avoid over-concentrating marketing in a specific period.

Shouting to investors

From "focusing on products" to "focusing on investment education", after the "new asset management regulations", the marketing logic of wealth management companies has changed, and investor education has been put first. Beijing Business Daily reporters noticed that on the eve of the "818 Wealth Management Festival", many wealth management companies issued articles to "call" investors not to be afraid of bond market fluctuations and to keep a stable mentality.

Since August, the bond market has undergone a round of technical adjustments. Many investors have found that the net value of their products has retreated, which has led to panic.

In response to this, many wealth management companies have issued articles to provide investors with countermeasures. Nanyin Wealth Management pointed out that bond asset management products have been in a general decline recently, but it is worth noting that the drawdown range of products of different styles will vary. For example, since this round of adjustment, the CSI Bond Fund Index has retreated by about 10BP, and some products with longer duration and more aggressive investment styles will have a larger drawdown. But in comparison, the drawdown range of bank wealth management products with a stable investment style is relatively small. If investors pursue a good and stable holding experience, at this point in time, they may wish to consider fixed-income wealth management products with low-volatility strategies.

Puyin Wealth Management pointed out that after the "New Asset Management Regulations", wealth management products are managed on a net value basis. Due to the recent adjustment in the bond market, the net value of wealth management product shares will inevitably fluctuate slightly. Although there is no wealth management product that is completely "immune" to fluctuations, investors can still choose suitable products according to their risk tolerance and improve the experience of holding wealth management products.

ICBC Wealth Management explained to investors the investment logic of the "diversification technique" of financial management from the story of "dividing eggs into baskets", so that investors can understand the importance of diversified investment; BoCom Wealth Management mentioned that many people simply equate "financial management" with making more money, and the blind pursuit of high returns is often accompanied by high risks. Investors should deeply realize that the core of financial management lies in maintaining and increasing value, that is, pursuing reasonable returns under the premise of ensuring asset safety.

Li Wenyan, a researcher at Puyi Standard, pointed out that for financial management companies, the next step should be to balance the relationship between profitability and low volatility, clarify the profitability target and tolerable risk range of financial management products according to product positioning and customer characteristics, and formulate investment strategies that match investment goals. Through diversified investment, risk dispersion can be achieved, and the impact of the volatility of a single asset on the overall portfolio can be reduced. While maintaining profitability, the volatility of the investment portfolio can be reduced. The performance of the investment portfolio should be evaluated regularly, and the portfolio should be optimized according to the investment objectives and risk tolerance of the portfolio.

Beijing Business Daily reporter Song Yitong