At the end of the year, the bank's wealth management sub-committee intensively "deployed troops" for its products. Since mid-November, many banks, including Bank of Shanghai Wealth Management, ABC Wealth Management, Everbright Wealth Management, etc., have announced fee reductions, and some product rates have been rolled up to 0. At the same time, some wealth management companies terminated their products in advance and persuaded customers to quit.
Some people in the industry pointed out that behind the reduction of fees to "attract customers" and the termination of "withdrawal of customers", it is essentially the normal market performance of bank wealth management after returning to net worth, which is conducive to fine-tuning in the potential volatility risk of the market at the end of the year and becoming a "weight" to protect investors. In such a market environment, the product structure is gradually optimized, inferior products that do not meet market demand will be cleared, and high-quality products will be further expanded.
Wealth management sub-intensively reduces rates.
Depositor Wang Xin (pseudonym) found that he had recently begun to receive intensive notices of year-end fee reductions for bank wealth management products, and the discount at the end of the year basically started at a 50% discount. "Although the cost of this part is not high, 'no matter how small the mosquito is, it is still meat', which is a small surprise. She added.
In fact, in recent years, bank wealth management has begun to intensively reduce rates to attract customers at the end of the year.
On December 9, Bank of Shanghai Wealth Management issued an announcement on the preferential rate adjustment of the "Yue Mouli" series of closed-end wealth management products, and the fixed investment management fee rate and sales management fee rate were both increased from 06% per year, down to 01% year. At the end of November, the wealth management company had just lowered its "net profit" series of open-ended wealth management products, and the fixed investment management fee rate was reduced from 06% per year, down to 02% p.a.;Sales administration fee from 060% annual drop to 025%～0.3% year.
Coincidentally, since December, Everbright Wealth Management has successively reduced or waived the management fees or sales service fees of five of its products, including "Sunshine Institutional Profit", and CNCBI Wealth Management has issued more than 10 notices of "Fee Phased Discounts".
According to the reporter's incomplete statistics, in the past one month, seven wealth management subsidiaries of banks, including Bank of Shanghai Wealth Management, ABC Wealth Management, Everbright Wealth Management and CMB Wealth Management, have issued announcements to reduce the rates of their products. The rate reduction focuses on fixed income or cash products, and the frequency of reduction of weighted products is relatively low.
Announcement on CMB Wealth Management Preferential Rates.
From the perspective of preferential strength, the fixed investment management fee rate and sales management fee rate of bank wealth management sub-have been significantly reduced, and the basic "five-fold" start. The fee rate of some products of Wealth Management is only 2% off the original price, while the fixed investment management fee rate of many fixed income products of CMB Wealth Management is from 01% to 005%, which is the original 5% off.
It is worth noting that the fee rate of some wealth management products has been reduced to 0. For example, for a cash management investment plan of CMB Wealth Management, the fee rate will be increased from 02% dropped to 0, entering the ranks of "zero yuan purchase";An open-ended wealth management product of ABC Wealth Management has also recently reduced its fixed investment management fee to 0. For example, if the cumulative net value of the product is less than 1 on the day before the valuation date of the product, no investment management fee will be charged on the valuation date.
At the same time, judging from the recent bank wealth management sub-announcement, the wave of product expansion in the fourth quarter of this year is still continuing. On November 28, Everbright Financial announced that it would set the upper limit of a single institutional investor's position at 100 million. And this is just a microcosm of the expansion of wealth management products. According to the statistics of Puyi Standard, since September this year, wealth management companies have issued more than 200 announcements on the adjustment of the upper limit of the scale, raising the upper limit of the product scale.
Early termination of the withdrawal.
While some products reduce fees and expand capacity to "attract customers", there are also wealth management products that are terminated early to discourage customers.
According to the market and investment operation, in order to protect the interests of investors to the greatest extent, after careful assessment, it is planned to terminate this wealth management product in advance on December 6, 2023. Huaxia Wealth Management pointed out in a recent product announcement that recently, the wealth management company has intensively issued 6 product early termination announcements.
Coincidentally, CMB Wealth Management said in a product announcement on December 6 that it would terminate the B share of a two-year fixed-income wealth management plan in advance. According to the product brochure, the establishment date of the financial plan is May 18, 2021, and the estimated maturity date is May 18, 2031. On December 4, Tianjin Binhai Rural Commercial Bank announced that the 6th phase of a shared RMB wealth management plan No. 1902 will be terminated on December 12, 2023. According to the information of China Wealth Management Network, the product was established on December 11, 2019, and the original product maturity date was December 11, 2029.
According to the monitoring of Puyi Standard, as of November 27, about 1,979 wealth management products in the whole market have been terminated early since 2023. This year as a whole, about 1,000 products have been terminated early by various wealth management companies, and most of these products have been terminated early with positive returns. Some products explained the reasons in the early termination announcement, including "making decisions based on the market and product operation", "protecting the interests of investors", and "early expiration of the investment target product".
The wealth management sub-product is in full swing.
In fact, behind the seemingly "hot" and "cold" is the bank's wealth management sub-bank "planning and arrangement" on the product side to optimize the structure according to the market changes at the end of the year.
From the perspective of fee reduction, since the beginning of this year, the action of adjusting the rate of bank wealth management products has gradually become frequent, aiming to flexibly fine-tune according to the market environment. The reporter noticed that many wealth managers lowered their rates at the end of the quarter and the year-end sprint period, and flexibly raised the rates when the market recovered. For example, according to the announcement, the product has set a preferential interest rate on July 1, 2023 and July 31, 2023, and the sales fee will be reduced from 025% annual downward revision to 012% per year, reducing the fixed management fee from 015% per year to 005% year. At that time, there was a round of volatility in the bond market, and the change in net value increased. And only 1 month later, as the market recovered, the product raised the rate by 001 percentage point, raising the sales fee to 013% per year, the fixed management fee is increased to 016% year.
Liu Yinping, an analyst at the Rong 360 Digital Technology Research Institute, told Yicai that as a for-profit institution, wealth management companies have greater flexibility in adjusting product rates, and there will be certain differences in the charging models of different periods and products. Under the trend of intensified competition in the asset management industry, the phenomenon of fee reduction and profit concession of wealth management products will become more and more common.
Su Xiaorui, a senior consultant in the financial industry at Analysys, pointed out that from the product issuance level, with the transformation of wealth management products to net worth, the issuance and scale of net worth products continue to rise, and the scale effect will also drive down the rate to a certain extent.
Behind the early termination of a number of wealth management products, it is also based on the judgment of wealth management on market demand. Puyi standard analysts recently pointed out that the main reason for the early termination of some wealth management products in the near future is the upgrading of product lines. Another part of the reason is that the scale of existence is too low, or the product performance is not good, and wealth management companies are reluctant to continue to operate. In addition, some wealth management products are structured products, which will be automatically terminated early after the trigger conditions are met.
An industry insider pointed out that for products with poor performance, large fluctuations in net value and small management scale, early termination is a normal market phenomenon. This also means that in the transformation of net worth, rigid payment and "capital pool operation" are relatively rare, and the logic of product survival of the fittest is more prominent.
He further pointed out that the logic behind the seemingly opposite behaviors of "soliciting customers" and terminating "returning customers" is actually consistent, that is, to comply with market demand and optimize product structure. By reducing fees and profits, we can promote the further expansion of the scale of some high-quality products. Some products with low market acceptance and small scale are cleared in advance, which can also effectively avoid waste of resources.