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China Europe Fund's FOF products are in trouble: the returns in the past year have all been in the red, and its funds have triggered the risk of liquidation

2024-08-19

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China Europe Fund recently announced that its China Europe Star Selection One-Year Holding Mixed Fund (FOF) may trigger the risk of termination of the fund contract because the fund balance has been below 50 million yuan for 40 consecutive days. This news has aroused the market's attention to the development prospects of FOF products. As a relatively new fund investment method, the performance of FOF products in the domestic market does not seem to be satisfactory.

FOF product performance is sluggish, and investor confidence is frustrated

Judging from the overall performance of China Europe Fund's FOF products, the situation is not optimistic. According to statistics, among the 38 FOF products currently in existence of China Europe Fund (A and C shares are calculated separately), only 11 have achieved positive returns since their establishment, accounting for less than 30%. Among them, there are very few products with returns exceeding 10%. On the contrary, there are as many as 27 products with negative returns since their establishment, accounting for more than 70%, of which 17 products have even fallen by more than 10%, and the returns in the past year have all been losses. Such performance will undoubtedly undermine investors' confidence, lead to capital outflows, and then cause the problem of shrinking fund size.