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the first public offering fund in history that only has "kpi" has really "refunded"!

as the first public offering product that proposes "no profit, no management fee", southern ruihe three-year fixed-term lofsince the previous closed period failed to achieve positive returns, the net value at the end of the period was lower than that at the beginning of the period. recently, the management fees of more than 30 million yuan in the past three years were refunded and included in the fund assets.

management fees are fully returned to fund assets

recently, an announcement about southern ruihe’s three-year fixed-term lof has attracted attention.

the announcement shows that according to the fund contract, on the last day of each closed period (this time it is september 5, 2024), if the net value of the fund shares at the end of the period is less than or equal to the net value at the beginning of the period, the management fees for the closed period and the previous open period (september 6, 2021 to september 5, 2024) will be fully returned to the fund assets on september 5, 2024.

on september 5, the fund's cumulative net value was 1.5799 yuan, which was less than the cumulative net value of 1.7456 yuan on september 15, 2021, so a "refund" operation was carried out. since the management fees collected in the past three years were returned to the fund assets, on september 5, the fund's net value increased by 4.61%.。

according to the periodic report, during the closed period from mid-2021 to mid-2024, the management fee of southern ruihe totaled 34.47 million yuan. it is worth mentioning that at the beginning of its establishment, the management fee of southern ruihe was calculated at an annual rate of 1.5% of the net asset value of the fund on the previous day. later, in line with the trend of industry fee reform, it was reduced to 1.2%/year from july 2023.

public data shows that southern ruihe was established on september 6, 2018. it adopts a three-year closed operation and periodic opening operation mode within three years, and takes the lead in innovation based on fixed management fees. that is, if the closed period rate of return is positive, a fixed management fee of 1.5%/year will be charged, otherwise no management fee will be charged. in layman's terms, "management fees are charged only when profits are made, and more is not charged."

the contract of southern ruihe fund stipulates that the fund's stock investment position shall not be less than 40% during the closed period, and the upper limit is set at 100%. this arrangement requires the fund manager to bear the volatility risk of at least 40% of equity positions for up to 3 years.

the fund is currently managed by shi bo and yun lei. as of september 6, the fund has gone through two complete closed periods in the six years since its establishment. the first closed period was from september 6, 2018 to september 3, 2021, with an interval yield of 81%.

during the second closed period, from september 16, 2021 to september 6, 2024, the interval return of southern ruihe was -10%.

public offering fee reform continues to advance

the return of management fees by southern ruihe is a positive attempt in the wave of public fund fee reform.

a fund reviewer said, "southern ruihe can be called the first fund to set up a profit kpi. if it does not make money, it will not charge management fees. moreover, its definition of profit is 'still making money after deducting management fees.' recently, this fund has implemented the contract agreement and returned the management fees for the past three years."

"this case is of great significance in the public offering market, especially in the area of ​​fees. the move to refund management fees marks the transition of the fund's 'refund' from contract to reality." the person further commented.

from the perspective of the industry as a whole, since the public fund rate reform was launched in july last year, the first phase of management fee reduction and the second phase of commission reduction have been implemented.

it is worth mentioning that as an important part of the rate reform, a group of floating rate funds with innovative charging models were collectively approved at the end of august last year. they have been established one after another since october last year and are divided into three categories linked to investors' holding time, fund performance, and fund size.

in the industry's view, the reform of public fund rates, including adjustments to the management fee collection model, has put forward higher requirements on the investment and research level of fund managers, which will help promote fund companies to improve their core competitiveness and return to the origin of management.