Source: scale business

There are fund products with failed offerings in the public offering market.Tikimegaways!

On April 27th, AgBank Huili Fund Management Co., Ltd. (hereinafter referred to as "Agricultural Bank of China Fund") issued a notice that the contract of the Agricultural Bank of China Huili MSCI China A-share Climate change Index Securities Investment Fund (hereinafter referred to as "AgBank Huili MSCI China A-share Climate change Index") can not enter into force. The content of the announcement shows that the issuance of the fund failed because the fund failed to meet the effective conditions agreed in the fund contract.

According to the fund contract, the successful issuance of the fund needs to meet two conditions: no less than 200 million yuan will be raised during the fund raising period and no less than 200 fund share holders.

Judging from the funds that failed in the past, almost all of them did not raise 200 million yuan during the fund-raising period. The Agricultural Bank of China Huili MSCI China A-share Climate change Index Fund probably did not raise 200 million yuan.

Data show that Agricultural Bank of China Huili MSCI China A-share Climate change Index Fund was approved by the regulatory authorities on November 7, 2022. The Agricultural Bank of China Fund began to issue the product on February 1, 2024, and the offering date is from February 1 to April 30, 2024, with veteran Song Yongan as the fund manager.

Combing the announcement issued by the Agricultural Bank of China Fund, on April 13, 2024, the Agricultural Bank of China Fund issued an announcement on the adjustment and raising period of the Agricultural Bank of China MSCI China A-share Climate change Index Fund. The announcement shows that the fund's raising deadline has been adjusted to April 26, four days ahead of schedule.

According to wind data, as of April 29, 2024, only two products have failed in the public offering market since 2024. AgBank Huili MSCI China A-share Climate change Index is the second failed product on the market and the first failed index product of the year.

The issuance of public market index products has been relatively hot since 2024. According to wind data, as of April 29, 2024, there have been 170 public index products launched since 2024 (including passive index funds, passive index bond funds, index enhanced funds, ETF). Judging from the number of subscription days, 16 of the products that have been closed for subscription have been raised in only one day.

Why did AgBank Huili MSCI China A-share Climate change Index fail when the issuance of index products is relatively hot?

On the one hand, it may have something to do with the index targets tracked by fund products.

The data show that the index tracked by AgBank Huili MSCI China A-share Climate change Index is "MSCI China A Climate Change Index" (MSCI China A-share Climate change Index). The index, released by MSCI in August 2020, aims to measure the opportunities and risks associated with the transition to a low-carbon economy, enabling institutional investors and wealth managers to incorporate climate risk considerations into their investment processes.

This index is an unpopular index, although the index has been released, but there are very few products tracked by this index. According to the approval progress announced by regulators, there are only two public offering companies that track the MSCI China A-share climate change index, one is Agricultural Bank of China Fund, the other is Warburg Fund.

Judging from the results, the Agricultural Bank of China Huili MSCI China A-share Climate change Index declared by the Agricultural Bank Fund has failed, and the products declared by the Warburg Fund have not made any new progress.

According to media reports, some people in the market said that the popularity of tracking public offerings is not high for minority and unpopular theme indices. On the one hand, the degree of identification is not high, on the other hand, the constituent stocks dabbled in in its index are also involved in other highly identified theme indexes, and investors are not enthusiastic about fresh and unpopular.

Combing the release situation, it is found that the index products that are sold out in one day or sold out in advance are almost all products that track the index with high recognition. For example, tracking the products of the CSI A50 index, the products issued by a number of public offering companies have sold out in advance. Dacheng Fund issued Dacheng CSC A50ETFJR sold 2 billion of its shares in 10 days.

On the other hand, Agricultural Bank of China Fund has insufficient competitive advantage in the field of index products.

Combing the situation of Agricultural Bank of China Fund, from the point of view of products, as of the end of March 31, 2024, there are only 5 index products (combined calculation of multiple shares) under Agricultural Bank of China Fund, there is no ETF product under it, and the scale of index products is only 18.Tikimegaways.98 billion yuan.

Data from Tiantian Fund Network show that at the end of March 31, 2024, the total scale of public offering management of Agricultural Bank of China Fund was 168.195 billion yuan, with index products accounting for only 1.13%.

Observing the changes of the index products of the Agricultural Bank of China Fund, from the end of 2019 to the first quarter of 2021, the index products of the Agricultural Bank of China Fund exceeded 10 billion yuan. From the second quarter of 2021, the size of the index products of the Agricultural Bank of China Fund began to decline, falling all the way to less than 2 billion yuan at the end of the first quarter of 2024.

In the past two years, many companies in the public offering market rely on index products, especially ETF products to improve their scale. For example, Huatai Perry Fund relies on the growth of ETF products and the total management scale increases significantly. On the other hand, the Agricultural Bank of China Fund has very few index products.

In addition to the lack of index products, there are not many talents in the index products of the Agricultural Bank of China Fund. Data show that the Agricultural Bank of China Fund currently has 24 fund managers, while only one veteran Song Yongan is the full-time fund manager of index products.

Song Yongan worked as a fund manager in the Agricultural Bank of China Fund for 11 years and currently manages four stock index products of the Agricultural Bank of China Fund. Another bond index product is managed by Guo Zhenyu, a fixed income fund manager.

Among the four products managed by Song Yongan, Song Yongan was responsible for issuing the Agricultural Bank of China 1000 Index Enhancement product in 2023, which has been in operation for less than a year and issued a notice in December 2023 saying that it was at risk of liquidation.

As of the end of the first quarter of 2024, the net asset value of the fund is 47 million yuan, less than 50 million yuan, and may still face the risk of liquidation.

Looking at the reserve products of Agricultural Bank of China Fund, there are no index products at present, all of them are bond type and mixed type.

From this point of view, due to the shortage of talents in their own index products, Agricultural Bank of China Fund appears to be weak in the layout of index products. At a time when other fund companies are scrambling to increase their size, Agricultural Bank of China Fund missed the opportunity instead.

For the Agricultural Bank of China Fund, it is necessary to introduce index product management personnel in the later stage to improve its layout in the field of index products, so as to enhance the development of the company.

What do you think of the failure of the Agricultural Bank of China Fund's index products?