Bond Funds Fail to Open Amid Defaults

JRJ: 债务违约频发 债券基金销售受阻

According to statistics, as of June 22, a total of 26 bond funds were issued, with a issuance size of more than 25 billion yuan, and accounted for nearly 70% of all funds in the month. However, the regular open-ended launch funds that are customized by similar institutions account for the largest proportion, reaching more than 80%. The number of bond funds and the size of the issuances have clearly rebounded in May. In May of this year, 19 bond funds were established, and the issuance quota was only 8.269 billion.

At the same time, bond funds still face the embarrassment of “selling”. According to rough statistics, as of June 22, 13 fund extensions have been made in June, of which bond products accounted for more than half. At the same time, the cases of bond fund raising failures are also increasing. Of the 10 funds that have not been put into effect this year, the bond funds accounted for 6 of them.

“Originally the company planned to issue a bond fund, but it had previously communicated with the bank channels. However, feedback from the previous bank channel suggested that it should not be issued for the time being. It is difficult to send in the current market situation.” According to a fund company’s marketing department sources Since the beginning of this year, frequent occurrences of debt defaults and the thumping of funds have also been commonplace. As a result, many individual investors have kept away from bond funds.

...According to feedback from a state-owned Daxing Banking Manager, because the previous banking products have a fixed income and a rigid property, compared with the bond fund, the bank's financial management is more attractive, and the individual customers who choose to buy the fund are actually more inclined than the money fund. In partial stock funds.

In the eyes of a fund company's bond fund manager, bond funds have not been able to attract more individual investors in recent years, mainly because the characteristics of bond funds' risk-returns are not obvious enough to provide stable risk-adjusted returns to customers. “In the current context of financial deleveraging, the bond fund's price/performance ratio is even worse than that of a money fund. Currently, the management fee of the money fund is mostly 0.15%-0.33%, annualized earnings are about 4%, and the management fee of the bond fund is 0.5%- 1%, only from the cost point of view, money funds will have a lot of advantages."

...According to the above-mentioned fund manager, the current bond yield has fallen back for a period of time. Under the background of frequent defaults on credit bonds, it is very difficult for bond funds to obtain higher yields than bank wealth management products.