The rates of some wealth management products even dropped directly to zero. For example, on June 5438+1October 13, Rizhao Bank announced that it planned to reduce the sales and management fees of three wealth management products, including Huanghai Wanlibao (2 1 180206), to 0% in the second investment cycle.
Reducing the rate of wealth management products to zero does not mean zero charges. Times Weekly reporters read through the brochures of several wealth management products and found that the excess performance rewards of all kinds of bank net worth products are very high, and the collection ratio is between 50% and 95%.
Excess performance reward means that when the actual redemption rate of wealth management products exceeds the performance comparison benchmark, more than some banks will distribute it between investors and themselves according to a certain proportion, which is one of the main charging items of net worth wealth management products.
"The fee is not fixed, and the bank will adjust the collection method and proportion of the rate and excess performance reward according to market conditions." The financial manager of a stock bank in Guangzhou told Time Weekly that the management fees and sales fees of wealth management products are "rigid expenses", but when the wealth management products purchased by investors have a loss of principal, the expenses to be paid will not be reduced. Below the performance benchmark, investors are at their own risk. Above the performance benchmark, banks and wealth management subsidiaries can obtain 50%-90% excess returns.
Invisible excess management fee
Investors pay not only fixed management fees and sales fees. The reporter of Time Weekly learned that the essence of rate concessions is to dilute the impact of product performance fluctuations on investors after the new asset management regulations and increase the market competitiveness of wealth management products. Banks reduce the rates of some wealth management products, which does not necessarily mean that investors can enjoy low rates.
Take Huanghai Wanlibao (20 180406) as an example. Since the end of June 1, its fixed management fee and sales fee have been reduced to 0%, but the excess performance can actually be given to investors. The product manual shows that on the confirmation date of purchase/redemption, if the actual portfolio income (excluding sales expenses, fixed management fees, custody fees and other related expenses) of the product investment in the current period exceeds the performance comparison benchmark, some banks that exceed the benchmark will receive 80% performance compensation.
The phenomenon that bank wealth management products charge high excess performance income is not a case. The fixed-income wealth management products of a wealth management subsidiary of a stock company are also indicated in the product specification. When the cumulative annualized rate of return of the products is higher than 7.5% (inclusive) during the duration, the product manager will charge 50% of the cumulative annualized rate of return of the products from 5.0% to 7.5% and 95% of the income exceeding 7.5% as the excess performance reward. The Manual also emphasizes that banks have the right to adjust the above-mentioned charging standards and the collection method and proportion of excess performance awards according to market conditions.
According to the data published by Puyi Standard 202 1 1, the average ratio of excess performance reward of bank wealth management products sold in the past year was about 73%. In addition, the average sales rate is about 0. 127%, the average custody rate is about 0.020%, the average fixed management rate is about 0. 184%, and the total average fixed rate is about 0.33 1%.
According to industry insiders, bank financing has certain advantages in sales cost and custody cost, and the charging standard is limited. Therefore, excess management fee (excess performance reward) has become a major source of income for bank wealth management business.
"Before the new asset management regulations, the actual rate of return of most wealth management products was actually higher than the expected rate of return, but banks would not take the initiative to inform customers." An industry insider revealed to the Times Weekly reporter.
Is bank financing still fragrant?
Attracting investors through preferential rates is a way for banks and financial subsidiaries to hedge the negative market sentiment caused by fluctuations in product performance.
Since 2022, the performance fluctuation of wealth management products has also been the norm in the wealth management market. Take Hui Ze as an example. On February 10, the net value of this wealth management product was 1.2405, which increased by more than 6% in one month compared with 1.3252 on October 4. The reporter of Time Weekly learned that the risk rating of "Huize open hybrid wealth management product 00 1 in 2020" is R4 (medium and high risk), and the benchmark of performance comparison is "60%× CSI 800 Index Yield +40%× CSI Total Bond Index Yield".
The financial manager of a state-owned bank told Times Weekly that bank financial products are linked to different financial products. Such as fixed-income bank wealth management products, assets may be linked to fixed-income assets such as bank deposits, interbank deposit certificates, large negotiable deposit certificates, and national debt. Investment in wealth management products linked to national debt, performance is also linked to the trend of national debt. Compared with the end of 2020, the yields of 202 1 6 months, 1, 10 and 30-year treasury bonds changed by -28BP, -23BP, -37BP and -40BP respectively.
Previously, the central bank successively lowered the medium-term loan facility (MLF), the standing loan facility (SLF) and the loan market quotation rate (LPPR). Some analysts pointed out that in the downward channel of market interest rate, the income of wealth management products will continue to decline in 2022.
At present, the wealth management market is still dominated by low-risk wealth management products with stable investment. As of February 13, China Wealth Management Network had 529 wealth management products on sale, including 503 fixed-income wealth management products, accounting for over 95%. On the whole, the steady type is the mainstream.
Even low-risk, fixed-income financial products may involve investing in financial derivatives. "There are even financial derivatives in the investment targets of R2 wealth management products." Some investors leave messages on social platforms. According to the usual experience, R2 and fixed-income wealth management products only invest in low-risk wealth management products such as cash and bank deposits, interbank deposit certificates and bonds.
In the third quarterly report of R2-rated and fixed-income wealth management product 202 1 of Huahui Wealth Management, the reporter of Time Weekly found that the cumulative proportion of cash, bank deposits, interbank certificates of deposit and bonds of this wealth management product exceeded 85%, while investment financial derivatives accounted for 0.74% of total assets and equity assets accounted for1kloc-0/.47%.
At present, wealth management products are mainly divided into investment product types according to the investment proportion of wealth management products. Take fixed-income wealth management products as an example. As long as the proportion of fixed-income wealth management products in the investment target exceeds 80%, there is no hard and fast requirement on how to allocate the investment proportion of other wealth management products.
Many bank App pages mainly give significant tips on risk level, recent annualized rate of return and latest net worth. The specific financial product investment situation of wealth management products, that is, the underlying asset composition of wealth management products, is only explained in detail in the product manual.
It should be noted that investors should be cautious about the expected rate of return in recent June and nearly one year when choosing bank wealth management products. Take a product of Huaxia Wealth Management as an example. 202 1, 10, the net value of a wealth management product dropped rapidly from the highest point before 202 1 to 1.000. At that time, the bank wealth management products were still in the transitional background of the new asset management regulations, and the implementation of "breaking just against" was still unclear, and the real performance level of bank wealth management products remained to be determined.