“Sunshine base” was a large number of redemptions, fund companies to sell closed-end products

On February 1, three more “sunshine bases” were added to the public offering market. The three funds are: Nanfang xingrun value holding for one year, e-fonda Yueying holding for one year and Dongfang hongruize holding for three years, all of which are active equity products with closed period. Among them, Dongfang hongruize’s three-year fixed opening is the first open subscription and redemption fund at the end of the closed period.


According to channel news, Nanfang xingrun value has raised more than 15 billion yuan at 4:00 p.m. in one year; e-fonda Yueying has raised more than 4 billion yuan in one year; Dongfang hongruize is expected to raise about 20 billion yuan in three years, far exceeding the 8 billion yuan limit of the total purchase amount.

"Sunshine base" was a large number of redemptions, fund companies to sell closed-end products

Although these three funds once again ignited the public’s attention to equity investment, from the issuance of other funds in the same period, there was no lack of adverse situation.


This year’s “sunshine base” generally has the following situations: 1. Market veteran, star role; 2. Allocation of Hong Kong stocks, cross market investment; 3. Brand effect of fund companies. If we add the timing of the issue, then investors basically rely on hand speed.


It is worth mentioning that behind the successive “one-day sell-out” may be the transfer of the stock of funds. The intensive issuance of new funds may lead to the large-scale redemption of “sunshine base” in the early stage.


According to the statistics of the funds sold out in one day and allocated according to proportion in the whole market, securities companies in China found that almost all of these outstanding “sunshine funds” were redeemed. Although most of these funds from famous families were over fulfilled in one day and allocated according to proportion, forming a grand occasion of “buying funds may not be able to buy them”, there was almost no exception within a few months after their establishment Some of the star funds sold out in one day accounted for more than 50% of the total.


Securities companies in China cite several cases

"Sunshine base" was a large number of redemptions, fund companies to sell closed-end products

Case 1: the “selected fund” of a super large fund company in Beijing raised 3.2 billion yuan a day, exceeding the upper limit of 3 billion yuan, and the subscription confirmation ratio was 93.692639%. As of December 31, 2020, the sub new fund, which was established on June 12, 2020, has shrunk by 40% after the six-month closure period, and the redemption rate probably occurred in December last year.


Case 2: the “Growth Fund” of a large fund company in South China has a yield of nearly 40% since its establishment six months ago, but more than half of the funds have been redeemed during this period. The fund’s share size was 26.967 billion when it was established at the end of May. However, only three months after its establishment, there were more than 8 billion funds running away. In the fourth quarter of 2020, there were more than 6 billion funds running away. As of December 31, 2020, the fund has redeemed 14.6 billion shares, leaving only 12.372 billion shares.


Case 3: a large Shenzhen fund company’s “sunshine base” once drew 30 billion yuan in a single day. Because its fund-raising scale exceeded the target of the Fund announcement, the fund’s share scale was 26.341 billion after proportional placement. Three months later, the fund was redeemed by more than 3 billion yuan, and it was redeemed by more than 7 billion yuan in the fourth quarter of 2020. That is to say, in this case In the six months since its establishment, Cixin fund, which sold out in only one day, has more than 10 billion capital running away, and its share scale redemption ratio has reached 39%.


Case 4: a new fund in Shanghai sold 50 billion yuan a day. When it was established in early July 2020, its share size reached 26.148 billion yuan. As of December 31, 2020, more than 8.1 billion shares have been redeemed. The return rate of the fund has exceeded 30% since its establishment five months ago.


Case 5: another fund in South China led by star fund managers also attracted more than 60 billion yuan on the same day in early July 2020. According to the latest quarterly report of the fund, although the yield of the fund has exceeded 25% in more than four months, there are still more than 6 billion funds to be redeemed. As of December 31, 2020, the net redemption ratio of the fund’s shares sold out on that day has also reached 14%.


At present, there are two basic strategies for fund companies to “redeem the old and buy the new”: one is to issue more vigorously; the other is to design closed period products.


From the perspective of the new development fund, more and more funds with a closed period are not only partial debt funds, but also active equity funds. Data show that from today to the end of this month, 41 funds will be issued successively, and nearly half of them are products with closed period.


It should be pointed out that there are also two types of products with a closure period: 1. Fixed opening fund. The buyer must hold the required closure period, such as Dongfang hongruize three-year fixed opening fund. 2. Hold the fund regularly, and you can redeem it freely after holding it for a certain time. For example, Nanfang xingrun value holding and e-fonda Yueying holding for one year.