Banks Start The First Sale Of Fund Consignment "Price War"

When we get used to buying 90 percent off of the purchase fee of the fund on the Internet platform, banks with high fees have also "relaxed".

In twenty-first Century, business reporter reported that China Merchants Bank, which has the title of "retail king", launched the first part of the index fund subscription fee / subscription fee 90 percent off discount.

For example, the Boshi Fund recently announced that since June 1st, individual investors have subscribed to or invested in the Shanghai and Shenzhen 300 index funds by the mobile banking, online banking and network outlets of the Bank of China, the enhanced index of the 500 index of the time of the CSI, the ETF connection fund of the gem, the Shanghai Stock Exchange 50ETF connection fund, and the 90 percent off discount of the purchase price.

This is not an isolated phenomenon.

It is reported that as early as April 10th, China Merchants Bank carried out subscription, purchase, and subscription rate premium activities for some of the index funds. Individual investors who subscribe to the index funds participating in the discount through the Bank of China Mobile Bank, online banking and network outlets can enjoy the 90 percent off discount rate of subscription or purchase procedures.

According to the respondents, the decline in subscription and purchase fees of public funds has been a trend. After the sale of ants on behalf of the public, the fund's selling rate has dropped to 90 percent off. At present, the three party platforms are basically 90 percent off, and the banks will continue to decrease in the future.

Sales Account

The first fund companies to participate in the purchase of premium rates include ICBC Credit Suisse, Bo Shi, Chuang Jin and so on.

It is understood that the purchase price of each index company linked to the fund is 90 percent off, ICBC Credit Suisse 50ETF connection A purchase rate from 1% to 0.1%, when the gold ETF connection A purchase rate from 0.6% to 0.06%, Chuang Jin Tong letter certificate dividend low volatility index launched fund from 1.5 to 0.15%. Since April 13th, Yi Fang Da Shanghai and Shenzhen 300ETF have joined A, huitianfu, the Central Bank of China and ETF have joined A, and have announced 90 percent off of the subscription fee.

"China Merchants Bank is mainly targeting the online sales index fund, which has lowered the subscription fee, and there has been no change in the general fund of regular consignment." A fund company responsible for the CMB channel said.

Another fund company's channel people further pointed out: "the discount rate of the consignment fund is not a universal behavior. The selection of which company and which fund is selected by the China Merchants Bank is similar to the key pool, and the fund that is included in this key pool will have a premium discount, not every fund is involved, and is currently limited to some index funds."

Although the scope of the discount is still small, the head of a Southern China sales company appreciates the fund's sales rate concessions.

"This is a good phenomenon. The sales rate of the Internet platform fund has already hit 90 percent off, and now many brokerages are playing 90 percent off, but the banks haven't had any discount. The discount is to give profits to consumers, and more importantly, when the purchase fee is hit to 90 percent off, banks will not have the power to frequently turn customer assets into account, which will improve the phenomenon of "fund making money, and the foundation people do not make money" in the past. The general manager of the above sales company said.

Then, how are the costs of the channel constituted?

A fund company official gave the reporter an account. The expenses of the fund's affiliate include: the subscription / subscription fee, the redemption fee, the sales service charge and the management fee.

Among them, the purchase fee / subscription fee and sales service fee are 100% of the sales channels, and the redemption fee deducts the statutory part of the assets belonging to the fund. The rest of the large banks generally take 100% of them, while the proportion of small and medium-sized banks or brokerages is generally between 50%-100%.

It is worth mentioning that management fees are divided into fund sales. This part of each fund is different, and each product may be different. In the general industry, the banking channel is divided into a higher level, followed by the Internet three party platform, and finally a brokerage firm.

Among them, the six largest banks have the highest proportion. The management fees of some big fund companies may even reach about 80%, but if they are large fund companies, the bank share will be reduced.

According to the introduction, shareholding system and city commercial bank in recent years, the level of management fee sharing is almost 20%~50%, the three party platform of the Internet is almost 40%-50%, and the channel of brokerages is often 0~10%.

In fact, it is a buyer's market or a seller's market. For example, the big fund has a high reputation, and the management fee allocated by the channel is relatively small. The small fund companies have no right to speak to the channels, and the fees collected by the channels are very high. Above fund company personage expresses.

Which channels do fund companies prefer to cooperate with?

The fund companies said: "in fact, it is not entirely proportional to the cost, because we have to see how big the channel contributes to us, so it is hard to say who is more willing to cooperate with them. The three channels of banks, Internet third party platforms and brokers will be coexisting for a long time. There is no substitute for anyone. They are different in terms of target groups, and their contributions to fund companies are different.

However, people who sell funds say that when banks have been charging higher subscription / subscription fees, in order to obtain more redemption fees, bank staff have the power to persuade customers to make working capital, and the turnover of funds several times a year is a common phenomenon for two or three times a year. This made the base people often make money because they kept paying their service charges.

For example, the purchase price / subscription rate of stock funds is generally 1.5%, and the redemption rate is 0.5%. A round-trip is 2% of the cost. Most of the cost is returned to the channel, and the fund turnover is three times a year. The purchase fee is only 6%.

"The fees for bank consignment funds are too expensive, and it keeps the capital's capital flowing, because the fund can only earn money by reducing turnover and holding for a long period of time. Customers can't earn money when they buy and sell frequently. Those who sell the Fund said.

Once the subscription fee / subscription fee is reduced to 90 percent off, the bank staff will not have the urge to persuade customers to frequent the trading fund. Instead, the management can be divided by long-term customers, so that the fund can earn money by holding a fund for a long time.

"The bank purchase fee is 90 percent off, which is a good phenomenon for the development of the industry and for the people." The fund sales people said.

Increasing competition?

Liu Wenhong, vice president of Ying Mi fund, believes that there will be two considerations in the attitude of banks to the public offering fund. One is to expand more young customers through the Internet. These customers are already familiar with the Internet platform and take the same price and Internet channels to win customers and customers. Two, in recent years, banks have also actively reduced the number of outlets and labor costs through intelligent intervention and human-machine interaction to cover high-end customers who are more sensitive to price in the past.

In fact, the daily fund of Orient fortune net achieved 658 billion 910 million yuan in 2019, and the annual income of financial e-commerce services was 1 billion 236 million yuan, an increase of 15.98% over the same period last year.

In contrast, as the king of fund consignment, ICBC has surpassed the sales fund in 2019 by 589 billion 200 million yuan, a decrease of 178 billion 900 million yuan compared with 2018 and a decrease of 23.29%. This has enabled the fund to surpass ICBC every day.

At present, the channel competition of fund consignment is increasing.

      Zhang Ting, a senior macroeconomic analyst at the grid, pointed out that "the decline in subscription and purchase fees of public funds is already a trend. The rate of index funds is very low and continues to show downward trend. For our country, the rate of fund consignment has dropped to 90 percent off after the sale of ants and public offerings, and the third party platforms are basically 90 percent off and future banks. It will continue to decrease. "

"Generally speaking, the fund company will give the purchase fee to the sales agency. If the cost of affiliate sales falls, the profits of the corresponding agencies will be diluted. This is also the reason why the bank has not substantially reduced the purchase fee, but the future reduction of the rate is a major trend. Investors will surely choose low rate platforms and institutions gradually." Zhang Ting said.

As for why merchants choose index funds to make concessions, a salesperson pointed out that the rate of passive index funds was relatively low, subscription fees, redemption fees and management fees were relatively low, and the losses of banks after discount were relatively small.

It is not surprising that the bank is the first to eat crabs. "In the bank, China Merchants Bank is a special one. The turnover rate of the industry customers is relatively low, and the turnover rate of other banks is two to three times a year."

Will other banks follow up the discount of fund sales?

It has been reported that the Bank of communications has followed up with a low profile of 90 percent off. According to the fund's announcement, Fu Guo Mei China mixed fund and some funds of Bodao road account for 90 percent off of the bank's mobile banking in May 22nd to June 30th.

However, a fund industry believes that "young customers will value discounts, convenience and heavy services, but banks have many older customers who value the endorsement of banks and rarely use the Internet to purchase funds. At present, banks want to keep customers. The focus of competition is to give customers a better experience. They will find more competitive fund companies, and more reliable fund products cooperation. As far as the price war is concerned, it may not be very likely.