SourceCasinoslotsfreespinsChina Fund Daily
Wu Jun, a reporter from China Fund News
Recently, the reporter learned from the industry that 10 billion private equity sixie invested in a small market capitalization quantitative selection product, adopting "1"Casinoslotsfreespins.8% management fee + 0 performance reward ", which attracted the attention of the market. Prior to this, there are also Pansong assets, Xingxu Private Equity Fund and other institutions to reduce the management fees or performance compensation of their index enhancement products.
Industry insiders believe that in recent years, some private placement has created different types of tool products, such as public offering ETF and other investment tools, to earn the market beta, in the rate is also relatively cheap. Some private placements attract investors by lowering product fees and give profits to investors. In addition, some private equity reform performance compensation extraction rules, better consistent with the interests of investors.
Private placement products are exempt from performance remuneration.
What's the reason behind it?
The reporter learned from the channel that sixie Investment, a 10 billion private equity firm in Shanghai, recently launched a small market capitalization quantitative selection product, which is free of performance remuneration, and the management fee is 1.8%.
As we all know, the popular charging method in the private equity industry is "2% management fee + 20% performance reward". This product does not charge back-end performance compensation, and the management fee is relatively low. What is the reason?
In this regard, the reporter interviewed sixie Investment, the company said that the launch of the selected product line is to provide investors with personalized style configuration tools, the product focuses on small market capitalization component investment. "on the one hand, for investments with high volatility such as small market capitalization, the high returns on Beta do not reflect the stock selection ability of quantitative managers; on the other hand, the selection of small market capitalization stocks is the first launch of the innovative 'selection' series launched by sixie. We hope to get market attention and recognition as soon as possible."
Sixie Investment also said that in terms of strategy, starting from the characteristics of small market capitalization, high returns and high volatility, products actively eliminate ST, * ST and stocks with a market capitalization of less than 2 billion yuan, so as to guard against extreme risks and improve the profit-risk performance-to-price ratio of the strategy. "small market capitalization stocks have high growth characteristics, and under a strict system, they can better show investment potential and performance-to-price ratio, so after the digestion of market sentiment and the completion of survival of the fittest, the allocation value of small market capitalization exists for a long time."
Zeng Hengwei, wealth management partner of the platoon network, believes that private placement exempts performance remuneration and sets lower management fees, which contains multiple considerations. First of all, in order to enhance the attractiveness of products to investors, especially in the current increasingly competitive market environment, lowering the fee threshold has become an effective means to attract more capital; secondly, it also reflects the confidence of private equity firms in their investment ability, and they believe that even without relying on performance compensation, considerable economic benefits can still be achieved by improving economies of scale and management efficiency.
In addition, sixie Investment also said that the main "volume" of quantitative managers is the ability to select stocks, and the form and level of the rate structure is the result of a tripartite tradeoff among the market, managers and investors. In addition to the iteration of strategic innovation, the company has been seeking innovation in product design, conforming to the development of the market, and designing corresponding product rates according to product characteristics.
A number of private equity companies waive management fees or performance compensation.
It may be a major trend to reduce the fees of private equity products in the future.
In fact, the reporter learned that in recent years, many private equity companies have taken to reduce or waive management fees, performance remuneration and other ways to benefit investors, but also attracted the attention of many markets.
Yin Tianyuan, research director of Chaoyang Sustainable Fund Research Institute, said that private equity managers who launched performance-free compensation products earlier were Pansong assets, and some of their index-enhanced products did not include performance remuneration, but only charged management fees; some long-short hedging strategy products do not charge management fees, only performance remuneration.
Other private equity managers offer products that clients choose to pay only management fees or performance compensation, such as Xingxu Private Equity Fund.
In addition, there are also conditions for private placement to set conditions for performance rewards. in December last year, Xu Xing Private Securities Fund announced that it would complete the change of the performance compensation plan for one of its products. Among them, the timing of performance compensation provision is changed to "provision at the time of customer redemption or product liquidation". And there are three prerequisites for the provision of performance compensation: first, the product must be positive income; second, the product must have excess income; third, after the provision of performance compensation, customer income must be positive, otherwise it can not be calculated.
In November last year, the China Securities Investment Fund Industry Association issued a proposal for the cultural construction of the private equity fund industry, which issued an initiative to all private equity fund managers and their employees, which mentioned that the calculation of performance remuneration should give priority to the interests of investors. do not rush for quick success and quick profit, not short-sighted and impetuous.
Yu Xin, a researcher at Geshang Fund, said that in recent years, some private placements have raised the benchmark for performance compensation, or set up ladder-type performance compensation calculation methods to bind their own interests and the interests of investors more firmly. In addition, some fees should be reduced or reduced to attract more investors, especially when there is a lack of market confidence. If the future performance is good, reducing costs may quickly expand the scale of management and attract more capital.
Yin Tianyuan also said that the reduction or reduction in rates will help attract customers in a market downturn or fierce competition in the industry and accumulate management scale at a faster rate.
Zeng Hengwei said that in recent years, the private equity industry has shown some innovation in the setting of rates. For example, some private equity firms have introduced products that do not accept performance compensation or improve the standard of performance compensation, which is designed to guide investors to pay attention to long-term absolute returns. At the same time, by adjusting the ratio of fixed management fees and performance compensation, private placement is also more closely tied to the interests of investors. These practices help to enhance the competitiveness of products, adapt to market changes, and meet the increasingly diverse needs of investors. The driving factors behind it include the change of regulatory environment, the intensification of market competition, investors' requirements for rate transparency and private equity firms' consideration of their own brand building and development strategy.