has suffered a cumulative loss of nearly 170 million yuan in the eight years since its establishment, and equity products account for 5% of the total scale. Five fund managers are in charge of 13 public funds. This is the current situation facing Founder Fubon Fund Management Co., Ltd. (hereinafter referred to as "Fangzheng Fubon").
By the end of June this year, Founder Fubon will celebrate its 8th anniversary, but judging from its current situation, the company's future development is hard to be optimistic.
Wind information shows that as of May 16, the total asset management scale of Founder Fubon Fund was approximately 18.5 billion yuan, ranking only 80th among the 134 fund companies (most of the ones that ranked further are newly established fund companies). Of the 18.5 billion yuan assets it manages, monetary funds exceed 14 billion yuan. If only the scale of non-monetary funds assets is counted, Founder Fubon will rank 94th.
The company's operations are in a quagmire of losses. The main reason is that
Founder Fubon is the first approved joint venture fund company in Mainland China. One of the shareholders is Fubon Securities Investment Trust Co., Ltd. with a Taiwanese background.
information shows that Founder Fubon Fund Management Co., Ltd. was officially approved on June 30, 2011. The company's registered capital was RMB 200 million, and in 2018, the company's registered capital increased to RMB 660 million. Among them, Founder Securities Co., Ltd. contributed 66.7% and Fubon Securities Investment Trust Co., Ltd. contributed 33.3%.
According to the public information that can be found, Founder Fubon has only made profits in 2015 and 2016 since its establishment, which is of course mainly due to the bull market background at that time. According to the company's latest 2018 financial report, Founder Fubon's revenue in 2018 was approximately 100 million yuan, with a loss of more than 17 million yuan, and its net profit ranks 69th among the 82 fund companies that publicly disclosed financial information.
The main reason for the operational difficulties of Founder Fubon is of course directly related to the scale of assets it manages.
As of May 16, the company's stock funds under its jurisdiction were less than 900 million yuan, and they are all passive products; the company's mixed funds under its jurisdiction were only about 100 million yuan, which has shrunk by more than 80% compared with its historical peak.
Of the 18.5 billion assets managed by the company, 13.5 billion belongs to a monetary fund - Founder Fubon Jin Xiaobao, which is really hard to support.
The regulatory punishment incident encountered in 2017 was also the pressure on Founder Fubon's operations.
In April 2017, due to violations in fund investment operations, fund sales, risk control compliance and other links, Founder Fubon Fund was ordered to rectify the matter by the China Securities Regulatory Commission and suspended the acceptance of public fund product registration applications for 12 months.
After the ban was lifted in April 2018, Founder Fubon established a total of four funds in November and December 2018, including two bond funds and two ETF funds. The management scale of the four funds was 1.136 billion yuan at the beginning of its establishment. However, Wind data shows that as of May 16 this year, the total scale of these four funds has shrunk to about 1 billion yuan.
Fund manager change rate is as high as 133%
Founder Fubon Fund has only two active equity funds (computed by the combined share), namely Founder Fubon Dividend Selection and Founder Fubon Innovation Power (A/C), both of which are equity-oriented mixed funds. Among them, except for Founder Fubon Innovation Power C, which was established on February 20 this year, it is still difficult to compare its performance, the other performances are unsatisfactory.
Wind data shows that as of May 16, the same rankings of Founder Fubon Dividend Selection "This Year", "Nearly 1 Year" and "Nearly 2 Years" were "703|717", "603|623" and "387|526" respectively; the same rankings of Founder Fubon Innovation Dynamics A were "This Year", "Nearly 1 Year" and "Nearly 2 Years" were "648|717", "334|623" and "423|526" respectively.
Especially since this year, although the A-share market has seen a relatively obvious rise, Founder Fubon Dividend Selection and Founder Fubon Innovation Power A have only achieved a total return of 1.29% and 10.85%, far behind similar products.
Public information shows that Founder Fubon Fund currently has 5 fund managers, of which 3 have a cumulative term of less than 1 year. Since 2018, three fund managers, Gong Xianfeng, Shen Yi and Xu Chao, have resigned. The change rate of fund managers in the past year is as high as 133%, ranking first among 134 fund companies.
Founder Fubon said on its official website, "The future goal of the fund is to continuously surpass itself and develop into a fund management company with diversified management products, investment capabilities all-weather, overseas business development, innovative investment becoming a feature, high-level customer service, high-quality management team, a certain influence and popularity, and a distinctive fund management company, becoming a successful model of cross-strait financial cooperation."
Just now, Founder Fubon has a long way to go from its goal.
This article is from Investors Network
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