On May 11, 2024, Jiangxin Fund issued an announcement on the change of senior management, which showed that the four deputy general managers Zheng Yu, Wang Anliang, Li Zhen, Wang Peng, and Chief Information Officer Fu Ming all left on May 10, Zheng Yu's reason for leaving was "retirement", and the remaining four were resigned for "personal reasons".
Five executives left at the same time, and for a time Jiangxin Fund caused a lot of shock in the public offering circle. Many friends are puzzled, what happened to cause such a big shock to the management?
The crane tail small public offering has been stagnant for nearly seven years
Seeing this news, I was surprised, I believe that many friends feel a little confused, where did Jiangxin Fund come from? It seems a little strange.
To say that Jiangxin Fund, established in January 2013, has been more than ten years, but it is no wonder that many friends are confused, the scale of less than 3 billion yuan seems to be difficult to hook up with the "old public fund".
According to wind data, as of May 26, 2024, there are 158 public offering licensed institutions in the market, and Jiangxin Fund ranks 142nd with a total management scale of 2.853 billion yuan, which is a veritable tail small public fund.
Qianhai Open Source Fund, Sino-Canada Fund, and Industrial Fund, which were established at the same time as Jiangxin Fund, have all been among the ranks of 100 billion fund companies, and Jiangxin Fund's current situation is somewhat bleak.
According to wind data, since 2017, the number of its fund products has stayed at 9, 2 hybrid funds, 6 bond funds and 1 cargo base are all the "family assets" of Jiangxin Fund.
The scale of Jiangxin Fund management
Source: Wind, as of March 31, 2024
From the beginning of its establishment in 2014 to 2017, Jiangxin Fund has developed steadily, with new products constantly established and the scale gradually rising.
The end of the third quarter of 2017 can be said to be the highlight moment of Jiangxin Fund. According to wind data, the scale of Jiangxin Fund reached 4.057 billion yuan at the end of the third quarter of 2017, and it was able to rank 100 among 122 public offering licensed institutions.
But in the following seven years, what awaits Jiangxin Fund is the ups and downs of scale, which has not exceeded 2017, and by the end of the first quarter of 2024, the scale has decreased by one-third from its peak.
And these seven years are the seven years of vigorous development of public funds! According to wind data, from the end of the second quarter of 2017 to the end of the first quarter of 2024, the number of public funds in the whole market has increased from 10 trillion to 28.8 trillion, and the scale has also increased from 4,355 to 11,752, more than tripling in size and number!
The outside world has changed, and Jiangxin Fund is still "retreating and cultivating".
Today, when the Matthew effect of public funds is getting stronger and stronger, the head funds are growing stronger and stronger, while the survival of tail funds is becoming more and more difficult. Where will Jiangxin Fund, which has not issued new funds for seven years, one-third of its products are mini funds, and has not exceeded 3 billion in more than ten years since its establishment?
One-third of its products have been reduced to mini-funds
In the seven years when the scale has not improved, the performance of Jiangxin Fund's products has also been tepid. Looking at the distribution of the fund size of Jiangxin Fund, it is basically supported by the debt base and the cargo base, and the scale of the only two mixed bases accounts for less than 1%!
According to wind data, as of March 31, 2024, the total size of the two hybrid funds under Jiangxin Fund is only 25 million! Among them, the scale of Jiangxin Tongfu is less than 24 million, and the scale of Jiangxin Ruifu is only a pitiful 1.5912 million yuan!
In the industry, fund products with a scale of less than 50 million are called "mini-bases", and the number of fund products has grown rapidly in recent years, and the regulators are also very concerned about mini-funds.
In 2022, the regulator strictly grasped a wave of mini funds, and at that time, it was rumored in the industry that the regulators would classify the mini funds according to the scale and put forward relevant disposal requirements.
Among them, mini funds with a scale of less than 10 million are the focus of urgent disposal, and fund companies should come up with solutions and dispose of them as soon as possible; Mini funds with a size of between $10 million and $30 million are required to submit a plan within 60 working days after the liquidation condition is triggered, and the plan must state the expected time frame and method of disposal; For mini funds with a scale of 30 million to 50 million, it may be necessary to report the plan within the year.
If it is according to this standard, it will be reduced to a mini fund at the end of the third quarter of 2023, and Jiangxin Tongfu, which has a scale of less than 30 million by the end of 2023, has already entered the disposal stage.
The scale of Jiangxin Ruifu is even more bleak, at the end of the first quarter of 2020, it was reduced to a mini fund, and since the end of 2023, it will only have a million scale, and it is on the verge of liquidation.
The total A/C scale of Jiangxin Momofuku
Source: Wind data, as of March 31, 2024
However, neither of these two funds has issued an announcement related to the liquidation of the fund, and the fund contract does not indicate that it needs to be liquidated when the share is low.
In addition to the hybrid fund, Jiangxin's bond base Jiangxin Qifu has also been reduced to a mini fund. According to wind data, Jiangxin Qifu's A/C consolidated share has dropped to about 10 million since the fourth quarter of 2023.
It is worth noting that these three mini funds are all managed by the same fund manager - Gao Pengfei.
As the only fund manager in the equity investment headquarters of Jiangxin Fund, Gao Pengfei, who has been engaged in investment for 10 years, has not maintained the scale of the product, and under the tone of Jiangxin Fund's stability, his performance has not been too thunderous, but he has always maintained a tepid situation.
In the past few years, whether the market has risen or fallen, Jiangxin's two hybrid funds have maintained the same direction with the market most of the time, only amplifying market volatility.
The annual net value growth rate of Jiangxin Ruifu A since its inception and the benchmark for comparison with the performance of the same period
Source: Fund Product Summary
The annual net value growth rate of Jiangxin Tongfu C since its inception and the benchmark for comparison with the performance of the same period
Source: Fund Product Summary
According to wind data, since its establishment, Jiangxin Ruifu has outperformed the performance benchmark in 3 years in the 7 years from 2017 to 2023, and Jiangxin Tongfu has outperformed the performance benchmark in 4 years in the 9 years from 2015 to 2023, with greater performance flexibility.
As the pillar of Jiangxin Fund, almost all fixed income products are managed by Ma Chaoran, who only joined Jiangxin Fund in April 2023, with a total scale of 2.853 billion yuan and Ma Chaoran 2.811 billion yuan!
Ma Chaoran's performance in the management of products
Source: Wind data, as of June 4, 2024
However, the performance of the cargo base and the debt base under the management of Ma Chaoran is average, except for Jiangxin Huifu, which can still squeeze into the same category, the performance of the rest of the products is in the bottom 50% of similar products!
In addition to these two pillars of Jiangxin Fund, Jiangxin Fund also has a fund manager, Xue Chen, who will only start to assist Xue Chen, who participated in the management of products on March 30, 2024, and the longest tenure of these three fund managers in Jiangxin Fund is just over three years!
Under the stagnation of the development of Jiangxin Fund, the former fund managers have also left, and Jiangxin Fund, which is already difficult to develop, is now facing the dilemma of no one available.
Profitability ranks first in the industry
As a public fund, Jiangxin Fund not only did not issue new products for seven years, but its fund managers left one after another, the product performed poorly, and behind the bleak future on the surface, the company lost money year after year, and the shareholders could not be transferred.
According to Wind data, in 2023, Jiangxin Fund's operating income will be 16.685 million yuan, and its net profit loss will be 45.695 million yuan, ranking first among public fund companies with public data.
According to the annual report released by Guosheng Financial Holdings, Jiangxin Fund's operating income in 2023 will be 16.685 million yuan, a decrease of 18.50% from the same period of the previous year, mainly due to the significant decrease in the scale of special account business in the reporting period; The company's operating profit loss was 45 million yuan and net profit loss was nearly 45.695 million yuan, a decrease of 24.45% and 31.50% respectively over the same period last year, mainly due to investment losses in the reporting period.
As of the end of 2023, the total assets of Jiangxin Fund were 79.9686 million yuan, a decrease of 31.21% from the end of the previous year, mainly due to the decrease in transactional financial assets; The net assets were 62.4438 million yuan, a decrease of 42.26% from the end of the previous year, mainly due to losses.
According to Wind data, since 2015, the net profit of Jiangxin Fund has shown a downward trend as a whole, and it has been in a state of loss for many years. From 2015 to 2017, Jiang Xinnian Fund was still profitable, with net profits of 18.2376 million yuan, 9.0891 million yuan and 633,200 yuan respectively.
However, since 2018, that is, since Jiangxin Fund no longer issued new foundations, it has continued to fall into a whirlpool of losses.
According to wind data, in the four consecutive loss years from 2020 to 2023, the losses of Jiangxin Fund reached 10.3472 million yuan, 21.1589 million yuan, 66.7115 million yuan, and 45.695 million yuan respectively.
Under the continuous loss, it is the shareholders who will eventually bear the losses. At present, Jiangxin Fund has a total of 5 shareholders, the major shareholder Guosheng Securities holds 30% of the shares, and the remaining 4 shareholders are Golden Kylin Investment Co., Ltd., Anhui Hengsheng Sunshine Holdings Co., Ltd., Yingtan Jufu Investment Management Limited Partnership, and Yingtan Hongshi Investment Management Limited Partnership, all holding 17.5% of the shares.
The major shareholder Guosheng Financial Holding has changed frequently in recent years. According to the announcement of Guosheng Financial Holdings, the actual controllers of Guosheng Financial Holdings in 2017 are natural persons Du Li and Zhang Wei. On July 17, 2020, the China Securities Regulatory Commission (CSRC) announced that it would take over Guosheng Securities for two years due to "concealment of the actual controller or shareholding ratio, and imbalance in corporate governance". In July 2022, Guosheng Financial Holding issued another announcement on equity changes, and the actual controller became the Jiangxi Provincial State-owned Assets Supervision and Administration Commission.
The frequent change of the actual controller often leads to the instability of corporate governance, so the industry is also speculating whether it is because of the frequent change of the actual controller of Guosheng Financial Holding that there are many obstacles to the development of its Jiangxin Fund and it has missed the golden period of development.
As early as January 2017, Guosheng Financial Holding issued two announcements in succession, planning to acquire 51% of the equity of Guolian Fund held by Guotai Junan Securities, and at the same time transfer 30% of the equity of Jiangxin Fund held by Zhongjiang International Trust Co., Ltd.
At that time, it was announced that it was optimistic about the development prospects of the fund industry and wanted to obtain control of a public fund company with a certain operating history, a good operating performance record, a stable team and a good reputation. The business structure of Jiangxin Fund is relatively simple, and its development is relatively slow, which cannot meet the company's business development demands in the public fund industry.
However, in the end, because Zhongjiang International Trust did not meet the shareholder qualifications, the equity transfer of Jiangxin Fund was forced to be terminated, and the equity replacement plan was stranded.
Since then, the development of Jiangxin Fund has come to a standstill, vaguely revealing a feeling of not being able to get rid of it and smash it in its hands. It's a pity to eat tasteless and discard, but in the end, the equity in your hand has become a "debt collector" who has been losing money year after year?
The shareholders were unable to support Jiangxin Fund, the company could not retain fund managers, could not issue funds, and the performance and scale were increasingly bleak, which eventually caused Jiangxin Fund to lose money year after year, and five executives left at the same time.
(The market is risky, so you need to be cautious when investing!) This article is not intended as an investment reference guide, and readers need to be responsible for their own investment! ）