China Times (www.chinatimes.net.cn) reporter Feng Yingzi reported in Beijing
html On December 6, the first batch of pension financial products from four pilot institutions, ICBC Financial Management, CCB Financial Management, CMB Financial Management and Everbright Financial Management, were launched in Wuhan, Chengdu, Shenzhen, Qingdao are officially on sale. The products are all closed operations with a five-year period, the risk level is level two or level three, and the performance comparison benchmark is between 5% and 8%." China Times " reporters learned that investors are very enthusiastic about purchasing pension financial products. Among them, the 2021 first issue of CCB Financial's "Anxiang" fixed-income closed-end pension financial products raised an amount of 2 billion yuan.
Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank, told a reporter from China Times that the launch of the first batch of pension financial products marked the beginning of my country's "real" pension financial product market and set a product "model" for the market.
html On December 7, when answering a reporter’s question on the status of pilot products for pension financial management, the relevant person in charge of ICBC Financial Management introduced that in the next step, ICBC Financial Management will gradually enrich the product line of pension financial management. In addition to the closed-end products issued this time, open-end products will be deployed in the future to meet investors' needs for different forms of senior care products.The "real" retirement financial product market has begun
In recent years, with the popularity of the concept of retirement care, retirement financial management has staged a "concept show". Some financial institutions have tried to launch financial products with the word "senior care", but most of them do not have real pension functions, and most are short-term products with a term of three months to one year.
According to the relatively mature concept of retirement care in the world, real retirement financial management should be "long-term" and "low threshold", that is, it advocates long-term investment and stable investment.
According to Puyi Standard statistics, a total of 6 banks issued 152 retirement financial products in 2019. In the first half of 2020, the issuance of retirement wealth management products increased. As of July 24, 16 banks had issued 142 retirement financial products.
Judging from the pension financial products issued in the first seven months of 2020, products with a maturity of one year or less accounted for 44%. What is even more noteworthy is that 98% of the products are expected return products.
Since the introduction of new regulations on asset management, products with expected returns that do not comply with the new regulations are obviously unsustainable. Since August last year, regulatory authorities have begun to clean up senior care products that do not live up to their names. In September, regulators instructed banks not to mislead the public into emphasizing the retirement attributes of bank financial management, and not to use the word "senior care" in violation of regulations in product promotions.
Cai Zonghan, associate professor at the School of Urban Economics and Management of Beijing University of Civil Engineering and Architecture, said that the investment concept of retirement financial management is biased toward the medium to long term of 5-10 years, while many previous financial management products were biased towards the short-term of 0-3 years. At the same time, judging from international experience, pension financial management has various payment methods such as annual, quarterly, monthly, etc., while traditional financial management mostly requires one-time payment on the maturity date.
In addition, Cai Zonghan added that usually pension financial management will also have a temporary payment mechanism for some serious illnesses, but traditional financial management requires payment of liquidated damages if it is not received on the expiration date.
In September 2021, China Banking and Insurance Regulatory Commission issued the "Notice on Launching the Pilot Program of Pension Financial Management Products" to improve my country's multi-level and multi-pillar pension insurance system with pension financial products and accelerate the construction of the third pillar of pension security. "Four places and four companies" The pilot business of "institutional" pension financial products has been launched.
A bank employee told a reporter from the "China Times" that the previously issued pension financial products have been rectified. As of December 8, reporters searched for keywords such as "pension financial management" on the China Financial Management Network, and only information on the four first batch of pilot financial management products for senior citizens was displayed.
The relevant person in charge of CCB Financial Management said that compared with ordinary financial products, pension financial products truly highlight the attributes of retirement. In terms of product design and investment management, there are more emphasis on ensuring long-term investment returns, better control of product net value fluctuations, and more flexibility. Liquidity support and other highlights.
Establish a regular dividend and early redemption mechanism
html On December 3, my country’s first batch of four pension financial management pilot products completed their application in the National Banking Industry Financial Management Information Registration System, officially debuted, and will be officially launched on December 6.Qualified investors in the four pilot areas can purchase through on-site, online banking, mobile banking and other channels.my country’s pension financial management pilot program has officially started.
Zhou Maohua told this reporter that compared with ordinary financial products, the first batch of pension financial pilot products have relatively stable returns, long terms, and stricter product design, risk management, investment strategies, and information disclosure requirements. Pension financial products are more suitable for investors who have pension investment needs, have a relatively low preference for liquidity, and prefer stable returns. In addition, the first batch of pension financial management pilot products are undoubtedly the most standard and standardized.
html On December 3, Song Minjie, Director of the First Asset Management Division of the Innovation Department of the China Banking and Insurance Regulatory Commission, said at the first batch of pilot pension financial products briefing meeting that the first batch of pension financial products have the characteristics of stability, long-term, and inclusiveness.The first batch of pension financial management pilot products start at 1 yuan, and they are all closed for five years. The total amount of all pension financial products purchased by a single individual investor does not exceed 3 million yuan. Data from
's "China Banking Industry Financial Management Market Semi-Annual Report (First 2021)" shows that as of the end of June, the weighted average maturity of my country's closed-end financial products was 281 days.
Wang Hailu, chairman of ICBC Financial Management, said that in order to take into account the long-term needs of elderly care, the cycle of this product is five years. In this way, we can achieve better cross-cyclical investment and achieve relatively more stable investment returns.
"The first batch of pension financial products can make up for the current lack of medium and long-term pension financial products in the financial market, and are also in line with international conventions in setting the investment period of pension financial products." said Wang Shaohui, a senior researcher at the Bank of China Hainan Financial Research Institute.
At the same time, the product also takes into account the needs of investors and takes into account flexibility. The four products have established regular dividend mechanisms after a certain period of establishment, and early redemption arrangements have been set up in consideration of special circumstances such as serious illness of investors to make up for the lack of liquidity in long-term investments.
Take CCB Financial's "Anxiang" series of pension products as an example. Closed pension financing supports monthly dividends, and open pension financing supports small-scale investments. These two innovative functions can meet the liquidity and investment needs of customers of different age groups. Focus on guiding customers in long-term retirement planning.
CMB Financial Management's "Yi Yang Ruiyuan" will be able to pay quarterly dividends based on the investment situation starting from the 6th month after the establishment of the product . At the same time, ICBC Wealth Management "Easy Antai" has also set up dividend terms to meet part of the liquidity needs of customers during the investment period.
Everbright Financial Management's "Yi Xiang Sunshine" has an early redemption clause. If the investor or his close relatives suffer from a major illness, or suffer from the type of critical illness commercial insurance insured by him, he can provide materials as required and handle early redemption.
Everbright financial management mentioned that as a medium and long-term investment category, the biggest risk in pension financial management comes from the erosion of principal by inflation rather than short-term market fluctuations.
Wang Shaohui said that a longer investment period can help guide investors to establish a rational and regulated pension investment concept of long-term investment and reasonable returns. Under the new asset management regulations, short-duration products tend to have lower returns, and they can only rely on investing in equity assets with higher risks to maintain higher returns. This does not meet investors' expectations for pension financial products to balance profitability and stability.
Therefore, the performance comparison benchmarks of the four pension financial products are between 5% and 8%. In comparison, in the first half of the year, the weighted average return rate of financial products was as high as 3.97% and as low as 2.96%.
Zhou Maohua pointed out that the relatively high returns of pilot financial management products for senior citizens are mainly related to the relatively long term of financial management products for senior citizens and their allocation of assets.
In terms of asset allocation, an investment period of more than five years means that pension financial products have room for cross-cyclical and long-term investment, support the development of emerging high-tech and other industries that are in line with the national strategic orientation, and enjoy dividends.
Everbright Financial Management Chairman Zhang Xuyang said in an interview with the media that he hopes that the investment aspect of this product can grasp the structural changes behind China's economic development. Invest in these emerging industries, such as new energy, ESG, medical, precision machine tools and other manufacturing-related industries in major countries, and share the dividends of the future development of these industries through long-term investment.
At the same time, the relevant person in charge of CCB Wealth Management introduced that the CCB Group’s rigorously screened projects will be selected and allocated, focusing on the allocation of market-oriented high-quality assets in advanced manufacturing , clean energy, technological innovation and other fields. Increase the allocation of green bonds , carbon neutral ESG high-quality assets, stabilize product returns, and use the power of new finance to solve the shortcomings and pain points of China's social and economic development.
Introducing the income smoothing fund mechanism
In terms of risk management, in order to make investment returns more stable, the four banks have added multiple risk control protection mechanisms. Not only risk reserves are calculated in fixed management fees at a higher proportion than general financial products With , a revenue smoothing fund mechanism has also been introduced to enhance product risk resistance.
In 2018, the regulatory authorities officially issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions ", which proposed that financial institutions should accrue risk reserves based on 10% of the management fee income of asset management products, or measure operational risk capital in accordance with regulations or Corresponding risk capital preparation.
Take CCB Financial Management's "Anxiang" series of senior care products as an example. This series of products accrues risk reserves at a rate of 20% of product management fee income, and at the same time conducts separate account management. At the same time, a certain proportion of excess income will be withdrawn and included in the smoothing fund, which will be used specifically to reasonably smooth the income of pension products. provides for impairment and is prepared to enhance risk resistance.
incorporates a certain proportion of excess returns into the income smoothing fund to deal with the situation where the product's risk reserve cannot cover losses. This is similar to adding an extra layer of "insurance" to the product.
In addition, overall, in terms of product risk levels, the four products are medium and medium-low risks. Except for the ICBC Wealth Management "Yixiang Antai" product, which has a risk level of R3 medium risk, the other three products are all R2 medium-low risk, which meets the requirements for stable pension financial products.
also focuses on fixed income products in terms of product configuration, among which ICBC Wealth Management, CCB Wealth Management, and CMB Wealth Management products are all fixed-income products, while Everbright Wealth Management products are mixed products.
Everbright Financial Management introduced that in terms of investment strategy, the pension financial products adopt a stable asset allocation strategy, taking advantage of the multi-asset and multi-strategy advantages of bank financial management to build an investment portfolio, and plan to invest in bonds, non-standardized debt assets, stocks, quantitative neutral Strategic assets, etc.
The relevant person in charge of ICBC Financial Management introduced that this pilot product attaches great importance to the balance between safety and profitability. The investment strategy is guided by the concept of large-scale asset allocation and adopts a CPPI-like (dynamic management of fixed proportion portfolio) strategy, optimizing safety. Higher-level sub-categories of assets will focus on areas that are in line with national strategies and industrial policies and supply-side structural reforms, taking into account product safety and profitability.
In the next step, ICBC Wealth Management will gradually enrich its product line for retirement wealth management. In addition to the closed-end products issued this time, ICBC Wealth Management will develop open-end products in the future to meet investors’ needs for different types of retirement products. At the same time, product plans will be continuously optimized based on the product sales operations during the pilot period.
In the future, more policy support will be needed to promote the smooth pilot work of pension financial products. When answering reporters' questions, the relevant person in charge of ICBC Financial Management mentioned that, for example, promoting the establishment of a personal pension system based on the account system; through tax exemptions and deductions, it will increase the enthusiasm of individuals to participate in pension financial products.
In addition, the above-mentioned person in charge said that the scope of product investment needs to be broadened. Judging from international practice, the effectiveness of hedging risks and locking in returns through cross-asset class and cross-market diversified investment strategies is remarkable. At present, the degree of diversification of the investable assets of pension financial products can still be improved. Not only the existing fixed income and equity assets, but also real assets such as private equity and infrastructure can be included in the investment scope of pension financial products in the future. .
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