"Short essays" are stirring up trouble again, this time targeting Xingyin Fund.
On the evening of September 5th, Xingyin Fund issued a statement saying that some media published content about "our company's chairman, Wu Ruoman, being penalized" and "our company's related products' illegal purchase of low-rated bonds." Xingyin Fund hereby solemnly declares: the relevant content is not true, the company complies with all laws and regulations, protects the rights and interests of investors, and operates legally and in compliance. To protect the company's legal rights and interests, the company reserves the right to further pursue the legal responsibilities of those who publish and disseminate false information.
Previously, a short essay titled "Hundred Billion Public Mutual Fund Frantically Mows Down Retail Investors" quickly spread and diffused on the internet, directly pointing to Xingyin Fund and its senior management team, especially the deputy general manager and general manager of the fixed income department, Hong Mumei, who is suspected of buying low-rated AA bonds that are strictly prohibited by regulatory reverse repurchase.
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Revenue in the first half of the year increased by nearly 50%
The scale of the fund doubled in one year
Public information shows that Xingyin Fund was established in October 2013, and as of the end of June this year, the latest scale is 128.476 billion yuan, with 18 fund managers managing 54 funds; the company was jointly funded by Huafu Securities and Guomai Technology (002093), with each holding 76% and 24% respectively.
Guomai Technology's 2024 semi-annual report revealed the operating conditions of Xingyin Fund in the first half of the year. In the first half of 2024, Xingyin Fund achieved a revenue of 214 million yuan, a year-on-year increase of nearly 50%, and a net profit of 53 million yuan, a significant increase from 35 million yuan in the same period of the previous year. Guomai Technology disclosed in the semi-annual report the reason for the growth of Xingyin Fund's operating conditions - mainly due to the year-on-year increase in net income from asset management business fees of the participating company.
So, what is the situation of Xingyin Fund's "net income from management business fees" in the first half of this year?
Tonghuashun iFinD data shows that as of the end of June, the total management fees of Xingyin Fund in the first half of this year amounted to 149 million yuan, compared with 97 million yuan in the same period last year, a year-on-year increase of 53.6%.
Generally speaking, the larger the scale of a fund, the more assets it manages, and the higher the management fees will be. The scale of Xingyin Fund has jumped from 84.441 billion yuan, ranked 61/197 in 2023Q2, to 128.476 billion yuan, ranked 53/200 in 2024Q2. In fact, since the fourth quarter of 2023, the management scale of Xingyin Fund has suddenly increased from 88.037 billion in the previous quarter to 125.236 billion yuan, and the growth has joined the public fund "hundred billion scale club".So, what kind of products or which funds have prompted the scale of Xingyin Fund to surge by 37.2 billion in just one quarter?
Data from Tonghuashun iFinD shows that the scale of non-monetary funds increased from 62.252 billion in Q3 2023 to 63.856 billion in Q4 2023, with not much change; the scale of money market funds, however, soared from 25.785 billion yuan in Q3 2023 to 61.38 billion yuan in Q4 2023, with no new products issued or liquidated products, and the number of funds remained at 4. In the first half of this year, the scale of money market funds was 57.271 billion yuan, an increase of 33.144 billion yuan over the past year, with a year-on-year growth of more than double.
Thus, the surge in the scale of money market funds is an important reason for the significant improvement in the operational status of Xingyin Fund.
Behind the rapid expansion:
Strategic adjustment and rectification of inspection
The mid-term report of Xingyin Cash Income Money Market Fund for 2024 shows that Xingyin Fund and its senior management received a warning letter from the Shanghai Regulatory Bureau of the China Securities Regulatory Commission on April 30, 2024, due to the failure to strictly implement company systems. As of the disclosure of the mid-term report, Xingyin Fund has completed the rectification.
At the beginning of her tenure as the new chairman in May 2023, Wu Ruoman set a vision to push the scale of money market funds to over 50 billion yuan. During September 5-15, 2023, the original money market fund managers Fu Qiaoyu and Zhang Yunwen successively resigned, and Hong Mumei personally took over the management of the money market funds, with the company's 6 fund products jointly managed by Hong Mumei, Zhang Lu, and Huang Zhaoren.
After Hong Mumei personally took over the management of the money market funds, the scale of Xingyin Fund's money market funds surged to 61.38 billion yuan by the end of Q4 2023, more than doubling compared to the previous quarter, successfully achieving the "small goal" set by the new chairman.
As the scale continued to rise, the performance of the money market funds was also satisfactory. iFinD data shows that the annual return of Xingyin Cash Income Fund in 2023 reached 2.21%, with a yield of 1.05% in the first half of this year.
Xingyin Cash Income A Fund performed even more brightly, with an annual return of 2.51% in 2023, ranking 1/766 in the same industry; the yield in the first half of this year reached 1.14%, ranking 4/857 in the same industry.The performance of Xingyin Cash Tiance Li has shown such a significant increase. What is the reason for this growth?
Looking at the allocation of securities, it may be related to the allocation strategy of corporate short-term financing bills and some medium-term notes.
At the end of the first quarter of 2023, Xingyin Cash Tiance Li Fund suddenly increased its allocation of corporate short-term financing bills and some medium-term notes. In the second quarter, the allocation ratio of corporate short-term financing bills was increased from 28.23% to 38.59%, and the proportion of medium-term notes also rose from 4.99% to 11.22%. By the end of the third quarter, Xingyin Cash Tiance Li continued to increase its allocation to corporate short-term financing bills and medium-term notes, with the allocation ratio of corporate short-term financing bills reaching 54.71%.
By the end of 2023, the fund's strategy for security allocation changed again, with a significant reduction in the holdings of corporate short-term financing bills and medium-term notes. Whether this change is related to the company receiving a warning letter and rectifying the situation is unknown.
It is worth mentioning that on April 20th of this year, Xingyin Fund announced that the supervisor, Zheng Ruijian, resigned due to health reasons, with the resignation date set for April 19, 2024, and Wu Zhenzi took over the position of supervisor. Subsequently, on April 30th, Xingyin Fund received a regulatory warning letter.
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