Interface News Reporter | Han Yuhang
Interface News Editor | Jiang Yiman
Ageing finance has always been one of the key tasks of China's financial power strategy, and it has become the focus of market attention under the trend of aging and low fertility population.
In September 2021, the former China Banking and Insurance Regulatory Commission issued and implemented the "Notice on Carrying out the Pilot of Pension Wealth Management Products", and the mainland pension wealth management products have gone through nearly 3 years from the pilot to the present. Now that 2024 has passed the halfway point, how is pension financial management?
The scale has exceeded 100 billion, and the stability is the top of the pension financial management
After the issuance of the "Notice on Carrying out the Pilot of Pension Wealth Management Products", the pension wealth management products will gradually expand, and the overall scale will exceed 100 billion by the end of 2023. According to data from China Wealth Management Network and Wind, as of June 28, 2024, a total of 11 bank wealth management companies have issued 51 pension wealth management products (excluding different shares of the same product).
According to the latest statistics from Wind, the scale of 51 pension wealth management companies totaled 100.559 billion yuan, of which ICBC Wealth Management issued the highest scale of pension wealth management, totaling 12.5 billion yuan. In terms of the number of issuances, CCB Wealth Management and ICBC Wealth Management have the largest number of issuances, with 11 each. BlackRock CCB Wealth Management is the only joint venture wealth management company that issues pension wealth management, and in 2022, it will issue one pension wealth management product "BlackRock CCB Wealth Management Bei Anxin 2032 Pension Wealth Management Phase 1".
From the perspective of product risk level, pension wealth management products are mainly low-risk fixed income wealth management, and there are 38 fixed income wealth management products with a risk level of R2, accounting for 75% of the number of pension wealth management products.
From the point of view of the rate level, the bank pension wealth management products have certain advantages over pension funds. According to the data of China Merchants Securities Research Report, the average management fee and custody fee rate of 51 pension wealth management products were 0.08% and 0.02% respectively, and the median management fee rate and custody fee rate were 0.10% and 0.02% respectively.
In terms of performance, the overall performance of pension wealth management products is stable, and there is no net breakage.
Jiemian News reporters sorted out the ten products with the best net value performance as of June 28. Among them, Everbright Wealth Management Product "Enjoy Sunshine Pension Wealth Management Orange 2027 Phase 1" has the highest net value of RMB1.0959. It is worth mentioning that the only joint venture wealth management company that issues pension wealth management products, BlackRock CCB Wealth Management's product "BlackRock CCB Wealth Management 2032 Pension Wealth Management Phase 1", has a good net value, ranking second among all pension wealth management products, at 1.0840 yuan.
Among the 10 products with the best unit net value, 4 products came from Everbright Wealth Management and 3 products from Bank of China Wealth Management.
However, although the net value of Everbright Wealth Management's pension wealth management products is relatively high, its performance in terms of income in 2024 is average, and it fails to rank among the top 10. The product with the highest return on investment since 2024 is BlackRock CCB Wealth Management's "BlackRock CCB Wealth Management 2032 Pension Wealth Management Phase 1", with a return of 4.9992% so far this year. BOCOM Wealth Management's "BOCOM Wealth Management Stable Enjoyment of Tianfu 5-Year Closed No. 1 Pension Wealth Management" and CMB Wealth Management's "CMB Wealth Management Zhaorui Yiyang Ruiyuan Stable Five-Year Closed No. 5 Pension Wealth Management" have also achieved good results, with returns of more than 3% since the beginning of this year.
New products have performed poorly, and the pace of issuance has slowed down year after year
However, the steady performance of pension wealth management products has slowed down the pace of issuance from 2023.
The issuance of pension wealth management products in 2021 officially kicked off: on September 15, 2021, the former China Banking and Insurance Regulatory Commission issued the "Notice on Launching the Pilot of Pension Wealth Management Products", and four wealth management products were piloted in four cities. In 2021, bank wealth management companies issued a total of 4 pension wealth management products.
In 2022, the scope of the pilot will be further expanded, and the "four institutions in four places" will be expanded to "ten institutions in ten places", and the pension wealth management business will enter a stage of accelerated development. 46 pension wealth management products were issued throughout the year, of which the peak number of products issued in a single month reached in September, with a total of 9 products issued.
However, in 2023, only IB Wealth Management will issue a pension wealth management product, "IB Wealth Management Anyu Five-Year Closed No. 3 Pension Wealth Management", raising a scale of 158 million yuan. However, at present, this "senior" pension financial product has performed poorly, both in terms of unit net value and income since the beginning of this year, ranking at the bottom of the 51 pension financial management.
So far in 2024, no pension wealth management products have been issued.
For the reasons for the slowdown in the increment of pension wealth management products, Puyi Standard Research pointed out that pension wealth management products should pursue high returns on the basis of maintaining stability, and the range of underlying assets is limited, and the overall development trend is homogeneous, which is difficult to meet the diversified investment needs of customers.
For the difficulties faced by asset selection, Puyi Standard said that the current research and development of pension wealth management products is mainly faced with the difficulty of "controlling risks" and "seeking returns", and the optional assets are limited in terms of underlying allocation.
Personal pension financial management is "stable and progressive", try hybrid products
Compared with pension financial management, personal pension financial management started late.
Personal pension wealth management products refer to public wealth management products issued by qualified wealth management companies that can be invested in capital accounts in accordance with the relevant regulatory provisions of financial regulators.
Different from the pension wealth management products with the word "pension" on the name, the personal pension wealth management products do not have the word "pension", although these products have been marked with the "personal pension" mark in the financial registration and custody system, but investors still need to choose carefully.
In terms of operation mode, unlike most of the closed-end net-worth pension wealth management products, the current personal pension wealth management is designed as an open-ended net-worth product in order to meet the needs of flexible purchases, with the shortest holding period products as the mainstay.
On February 10, 2023, China Wealth Management Network released the list of the first batch of personal pension wealth management products, and the first to sell are 7 products of ICBC Wealth Management, ABC Wealth Management and China Post Wealth Management. After that, on February 24 and September 20, China Wealth Management Network successively released the second and third batch of pension wealth management lists.
With the announcement of the fourth batch of personal pension wealth management products at the end of 2023, a total of 6 wealth management companies have issued 23 personal pension wealth management products so far.
Personal pension financial management has made a bold attempt in the nature of investment. Different from all fixed-income pension wealth management products, 20 of the 23 products issued are fixed-income products, accounting for about 87%; 3 are hybrid products, accounting for about 13%, of which 2 are issued by ABC Wealth Management and 1 is issued by Bank of China Wealth Management.
Although the nature of investment is relatively diverse, the overall risk of pension wealth management products is low. In terms of risk level, 13 of the 23 products have a risk level of R2 (medium and low), accounting for 57%; 10 products with a risk level of R3 (medium), accounting for 43%.
On the whole, ICBC Wealth Management, Bank of China Wealth Management and ABC Wealth Management issued a large number of products. ICBC Wealth Management's product "ICBC Wealth Management Xindeli (2018 No. 32) B" ranks first among personal pension wealth management products with a unit net value of 1.2379 yuan. Among the 23 personal pension wealth management products, 3 have a unit net value of more than 1.1 yuan, two from ICBC Wealth Management and one from CCB Wealth Management. There is no net breaking in personal pension wealth management products.
In the first half of 2024, ABC Wealth Management's personal pension wealth management products performed the best, with the three personal pension wealth management products of ABC Wealth Management, "ABC Wealth Management ABC Shun Mind 720 Days L", "ABC Wealth Management ABC Shun Mind 365 Days L" and "ABC Wealth Management ABC Shun Mind 1080 Days L" have yielded more than 4% since the beginning of this year.
As the only personal pension wealth management product issued by joint venture wealth management, "BlackRock CCB Wealth Management Bejia Target Risk Stable (minimum holding 365 days) L" has also achieved a considerable return of 3.0815% since the beginning of this year.
However, it is worth noting that the "Bank of China Wealth Management (5 Years) Minimum Holding Period L" of Bank of China Wealth Management has achieved negative returns this year. As the main stable personal pension financial management, the yield of this product is only -0.3953% since the beginning of this year.
As a medium-risk wealth management product, the product has set a performance benchmark of 4.25%-6.25%, but according to Wind, the annualized rate of return of the product in the latest year is only -1.03%, far underperforming the performance benchmark.