Finance Associated Press, December 6 (Reporter Cao Yunyi).Recently, a number of banks and wealth management companies have issued announcements on rate adjustments to discount the rates of their wealth management products. Since the beginning of this year, there have been many reductions in the rate of wealth management products, and experts said that in the context of the poor investment environment, wealth management companies have reduced fees in stages to make profits to investors, and the phenomenon of discounting the rate of wealth management products in the future will be very common.
Fee reductions are offered to investors
From December 6 (inclusive) to December 5, 2024 (inclusive), Everbright Wealth Management will launch the preferential rate promotion activity for the "Sunshine Gold Tianli Nianying No. 6" wealth management product (EW0666). During the promotion period, the management fee, A share sales service fee and B share sales service fee rates of "Sunshine Gold Tianli Nianying No. 6" wealth management products are 015% (annualized.)15% (annualized.)05% (annualized).
On December 5, Huaxia Wealth Management issued the "Announcement on the Preferential Rate of Huaxia Wealth Management Cash Management Wealth Management Product No. 8", stating that it intends to carry out preferential rates for Huaxia Wealth Management Cash Management Wealth Management Wealth Management Product No. 8, and the preferential rate types are fixed management rates and A share sales handling fee rates, and the preferential rates are all 005% per year, the promotion period is from December 7 inclusive.
Previously, Zhongyuan Bank also released a wealth management rate, and implemented a preferential rate for Tiantianying No. 2 wealth management product before December 31, and the sales service fee was increased by 02% to 005%, fixed management fee by 02% to 001% Activity.
In this regard, Liu Yinping, an analyst at the Rong 360 Digital Technology Research Institute, told the Financial Associated Press that wealth management companies will generally adjust the product rate appropriately according to the investment environment and the performance of wealth management products, and the rate adjustment strategy is more flexible.
There are two main reasons for the reduction of product rates this year: first, the investment environment is poor, the net value of wealth management products has declined, and wealth management companies have reduced fees in stages to make profits to investorsSecond, wealth management companies actively seize market share and make up prices with volume. Liu Yinping believes that in the future, the phenomenon of discounted rates for wealth management products will be very common.
Su Xiaorui, a senior consultant in the financial industry of Analysys, pointed out that the overall rates of wealth management products are showing a downward trend, mainly at the level of the macro environmentSecondly, at the level of product issuance, with the transformation of wealth management products to net worth, the issuance volume and scale of net worth products continue to rise, and the scale effect will also drive down the rate to a certain extent.
Investors value returns more
In the first half of this year, there was also a wave of rate discounts for wealth management subsidiaries, but after the wealth management market picked up in August, wealth management subsidiaries raised the management fees of their respective products.
Liu Yinping pointed out that 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, but fee reduction is a strategy rather than an end. The purpose of lowering the rate of wealth management products is to cope with the slow growth of the net value of products during special periods** or to make periodic concessions to investors, so that investors can more easily obtain performance benchmarks.
According to the analysis of industry insiders, the value of simple fee reductions of wealth management subsidiaries is not large, compared with the rate of return, 0The 1% cut is hard to notice investors. Previously, some wealth management products adopted a bolder charging model (such as no management fee for a net value of less than 1 yuan), but the scale of fundraising did not significantly exceed expectations, and customers paid more attention to the effect of making money.
In the short term, the market pattern of preferential rates as the competitiveness of the wealth management market will continue for some time, and even affect more asset management products and companies. However, for the wealth management subsidiaries of existing banks, it is the general trend to launch wealth management products with higher returns, stable risk control, safety and good liquidity. Wu Dan, a researcher at the Bank of China Research Institute, believes that it is possible to strive for customer trust and satisfaction by strengthening the investment and research capabilities of the wealth management market, actively enhancing the design of characteristic wealth management products, and increasing the publicity and promotion of products.
Financial Associated Press reporter Cao Yunyi).