Since the beginning of this year, fund companies have spent 300 million yuan to buy their own funds. In addition, many star fund managers have bought their own funds, such as Zhonggeng fund Qiu Dongrong and Huaxia Fund Cai Xiangyang. From the past data, many fund companies get a lot of profits through self purchase.
According to choice data, as of February 3, this year, 20 fund companies have purchased funds 31 times, with a total net purchase amount of 318 million yuan. From the perspective of fund types, nearly 80% of the partial equity funds (including passive funds), accounting for 77.4%.
The fund company with the largest number of self purchase is Tianhong fund, which bought 8 funds at one go. ICBC Credit Suisse, which has the largest amount of subscription, has invested 70 million yuan to purchase its ICBC poly 18 month fixed hybrid a.
Fund managers also subscribe to the funds they manage. For example, on January 28, Penghua Fund announced that Yuan Hang, the fund manager of Penghua quality preferred hybrid, plans to invest 1 million yuan to subscribe to the fund in the near future.
From a historical point of view, the situation of self purchase funds. From 2015 to 2020, a total of 131 fund companies purchased 1257 products from themselves, with an average of 204 times a year, and spent nearly 26 billion yuan in total.
Among the 405 active partial equity funds purchased by the company, nearly 95% of the fund returns are positive, and more than half of the fund returns are more than 50%. Many fund companies get a lot of profits from the purchase.
For example, huitianfu consumer industry, in February 2020, huitianfu self purchased 40 million yuan. So far, the yield of the fund has doubled in the past year. Regardless of the fund fees, the fund company’s floating profit is about 45.2 million yuan.
Another example is e-fonda’s blue chip selection and mix, which is managed by Zhang Kun, the “top flow” in the fund industry this year. After the long Spring Festival holiday last year, e-fonda’s fund bought 100 million yuan, an increase of more than 124.43% in the past year. This means that e-fonda fund made more than 100 million with this fund.
It should be noted that there are also many self purchase funds with negative performance or even liquidation, such as some sponsored funds. In addition, when fund companies buy passively managed funds, although they release a “buy” signal to investors, when they “sell” also becomes the key to profit.
Wang Bosheng, senior analyst of Shanghai Securities Fund Evaluation Research Center, analyzes the self purchase fund behavior and finds that there are generally two kinds of self purchase scenarios of fund companies: first, when the market risk is released quickly, it is mostly for the purpose of enhancing investors’ confidence to prevent stampede caused by large-scale redemption and rapid scale reduction; second, when the risk preference of “bear at the end of the bull at the beginning of the bear” is depressed, this situation is not obvious Self purchase is more to reserve ammunition for the future market, which is a good opportunity to obtain good stocks at a good price.
On the whole, when the company has self purchase behavior, it generally plays a positive role in maintaining the net value of the fund. A number of people in the industry said that fund companies or fund managers follow the investment fund, which means that the fund manager is more motivated to do a good job in the fund and bind the interests of investors together, which can be used as a reference index for buying funds. However, it should be noted that this does not mean that fund managers who buy from themselves will definitely be able to make money.
A fund researcher suggests that when buying a fund, in addition to taking self purchase fund as a reference index, it also depends on whether the historical performance and the style of the fund manager fit in with themselves. We should not follow blindly. This paper examines whether the fund is worth buying from its expected return, investment period and risk preference. In addition, you can also set up your own fund pool according to the purchase of fund employees and senior managers in the annual report and semi annual report.
Reprint indicated source：Spark Global Limited information