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Yields up to 6%. Money Funds become a new choice for cash management

Edit: Lisa Source: First Financial Daily Date: 2017-06-15

Summary:

Since the beginning of this year, the yield of the money fund has been rising all the time. It is a common phenomenon that the annualized rate of return on the 7th is more than 4%. Individual funds can even exceed 6%.

“All my idle funds are placed in this money fund.” The e-commerce department of a fund company in South China took out the mobile phone. The page is the APP homepage launched by the fund company.

In the past six months, cash assets have once surpassed bond assets, and money funds have become a better hedging tool. In particular, some money funds have realized the "T+0" real-time cash withdrawal function, and the yield is better than the traditional bank demand deposits, so it has become a new choice for many people's cash management.

Although the risk is low, this does not mean that the money fund has no risk. At the end of last year, the liquidity crisis that the Monetary Fund broke out showed the importance of the liquidity management of the Monetary Fund. Now, from the regulatory level to the fund companies, they attach great importance to the liquidity management of the money fund, not only controlling the proportion of interbank deposits and securities assets on the investment target, but also the internal control of the fund companies is also strengthening the stress test on the money fund. Wait.

Wang Chao, a fund manager of Rongtong Cash, expects that the yield of the money fund will continue to rise slowly in the future, so from the overall perspective of this year, the money fund has certain appeal.

  Preferred for idle money management

  Cash is king.

In this year's wealth management market, this sentence is no longer just a slogan. As the domestic bond market is affected by the tightening of regulatory policies, the yield curve as a whole is rising, and the yield of the money fund is pressing the fixed-income bond assets.

Public fund companies are also sparing no effort to promote such products. For example, the advertisement of a fund company: "From now on, individual users can enjoy a maximum cash withdrawal service of up to 10 million yuan per day. The fastest one minute will arrive, 7x24 hours online, all year round!"

There are also public offerings that force the sales of Internet-based goods, forming the same momentum as the balance. On June 1st, Boss Hehui Monetary Fund officially went online on the Ant Financial Service Platform, becoming the first money fund product other than the balance treasure of the online ant jinfu service. This is the first one in the ant treasure treasure except the Tianhong fund balance treasure. Online money funds.

Another advantage of the money fund is that it can enjoy the benefits of holiday financing: On the weekend, if investors buy a money fund before 15 o'clock on Thursday, they can enjoy a three-day profit opportunity; On legal holidays, you can enjoy up to 7 days of holiday income when you buy in advance. "People are at rest, money is at work."

Compared with the traditional bank current financing, the money fund has higher income. Wind statistics show that on June 13, the money fund yield continued to rise, and the highest 7-day annualized rate of return was close to 6% (one on the 12th). 6%, up to 6.105%), 286 currency funds have an annualized rate of return of more than 4% on the 7th. For example, Wang Chao manages Rongtong Cash Bao B. On July 13th, the annualized rate of return is 4.333%.

Judging from the main types of interbank deposits invested by the Monetary Fund, the current interbank deposit interest rates for 1 month, 3 months and 6 months have been basically rising since May, and the money market interest rates have risen in an all-round way, which has also led to the money fund. The rate of return has risen.

“Not only institutions, including individual investors, are sensitive to the short-term rate of return of the money fund. We have a lot of money products inside, and as long as one has a rising rate of return, it will see a significant increase in its purchases.” The public fund fund money fund manager told CB.

In addition, the industry also pointed out that the withdrawal of money funds is more flexible, not only supports 7x24 hours of fast redemption, from the perspective of investment costs, investors buy money funds through the channel of the fund company, transfer and transfer will not incur costs And usually only has a threshold of 1,000 yuan.

 Monetary fund becomes a new choice for cash management

There is still some attraction in the future

In Wang Chao's view, the yield of the money fund is expected to continue to rise, "but the process will be slower."

This year, in the context of financial deleveraging, liquidity tensions persisted. Although the central bank compensated for the underlying currency gap through open market operations and MLF (interim loan lending) to prevent liquidity from drying up, monetary policy remained neutral and tight. To become a market consensus, the funds are hard to say loose.

On June 6, the central bank put 398 billion yuan into the market through MLF, keeping interest rates unchanged. Last week, a total of 224.3 billion yuan of MLF expired (the amount due this month was 431.3 billion yuan); meanwhile, there were 470 billion open markets last week. The Yuan reverse repurchase expired, and the central bank launched a reverse repurchase of 460 billion yuan.

The data shows that as of 11:30 on June 14, the January Shibor (Shanghai Interbank Offered Rate) rose from 4.0477% in mid-May to 4.8288%, and the March Shibor also rose from 4.2609% in mid-April. To 4.8727%, it shows that the current liquidity of the banking system is in a tight state.

From the historical data of 2011 and 2013, the monetary funds are all sought after by the market when the central bank's monetary policy is tightening. "This year's monetary fund's 7-year annualized rate of return has a price advantage. It is expected that the future monetary fund's yield will continue to rise slowly, so this year, the monetary fund has a certain attractiveness." Wang Chao said.

"Recently, the money fund's rate of return has been rising. On the surface, it is liquidity tension. The deeper level is the tightening of monetary policy brought about by financial deleveraging. In recent years, funds have self-circulated in the financial system and developed too fast, resulting in some economic dislocation. "Virtual", the regulatory layer began to 'de-leverage' after realizing this problem last year." Yin Liping, manager of Yinhua Riley Fund, told the First Financial.

Hong Liping believes that the central bank is currently preventing liquidity from drying up by using open market operations and MLF to compensate for the underlying currency gap. However, the initial cost of the fund is high and the term is short, the currency derivation ability is greatly reduced, and the fund interest rate fluctuates greatly. Under this pessimistic expectation of liquidity, all parties have adopted a cautious defense strategy.

Analysts also believe that in June, the Fed's interest rate hikes on the board, shrinking the table is also on the timetable. Although the spillover effect of this interest rate hike may not be as good as before, the banking system will face a new round of MPA (macro-prudential assessment system) assessment, which will bring a phased impact to the money market, and the funding will be further tightened. . In addition, judging from the supply and demand of interbank deposit receipts, the expiration of inter-bank deposit receipts reached a record high in June. The increase in the “supply and demand gap” will also exert certain pressure on the funds, and the income of the money fund may further increase.

"As a combination of income, the fund has a relative period of time. Although the rate of return is now raised, the assets in the fund portfolio will be reconfigured in the process, so the situation of tight funds is reflected in the income of the fund. The rate adjustment rate will be slower." Wang Chao also said.

 Pay attention to liquidity risk management

However, since the Monetary Fund is a low-risk investment positioning, its biggest risk comes from liquidity risk, which puts higher requirements and tests on the risk management of fund managers.

At the end of last year, the bank’s cash position was in short supply, the bond market was in a tight liquidity, and the money fund was redeemed to varying degrees. The rumors of “explosion” were revived.

"After that time, not only the regulatory layer, but also the internal risk control of the company attached great importance to the risk management of liquidity." The above-mentioned Beijing money fund manager also admitted.

On March 31, the CSRC officially publicly solicited opinions on the “Regulations on the Liquidity Risk Management of Open-end Securities Investment Funds (Draft for Comment)” (hereinafter referred to as the “Regulations”).

The "Regulations" put forward special requirements for money market funds, requiring the size of the money fund to be linked to the risk reserve, and restricting the voluntary new money funds. Article 29 of the Regulations stipulates that “the net asset value of the money market fund managed by the same fund manager using the amortized cost method shall not exceed 200 times the balance of the fund manager’s risk reserve at the end of the month.”

"For ordinary investors, investing in monetary funds and picking up some fund companies with good historical performance and large scale are relatively secure. Some fund companies have developed very fast. After the bond market crisis at the end of last year, they were greatly affected. Then, the regulatory authorities introduced new regulations, which mentioned that a fund company's development of the monetary fund's size limit is 200 times its risk reserve. If it is less than 200 times, there is no problem, but for the new fund company, there is no risk preparation. Kim, if they develop money funds, the protection will be worse.” The above-mentioned Beijing public fund manager further said.

Another regulation is the investment limit on the proportion of credit bonds. "Proportionally, there is a constraint that the proportion of investment in bond assets is limited to 40%, which is to counter the deviation of the money funds that appeared at the end of last year. At the end of last year, some fund companies invested a large number of certificates of deposit, resulting in a negative deviation out of control, according to The "Regulations" can also better protect the interests of investors." The Beijing public fundraising fund manager told reporters.

For the time being, liquidity tensions also need to guard against the risk of large redemption while raising the yield of the money fund. “Normally, there is a high probability of a large redemption risk at the end of the period, mostly at the end of the season. Since the current tone is tightening, everyone expects to be more adequate, so the funds appeared in early June this year. The situation, the overall redemption rhythm may be advanced." Hong Liping said.

"The factors at the end of the season cannot escape, and the overall may still be a net redemption, but the redemption at the end of the season may be slightly lighter than in previous years." The above-mentioned Beijing public fund manager also admitted that if the fund company does not deliberately scale. The scale may decline.

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