As of March 30, more than 30 public fund companies have disclosed revenue data for 2021, and the ability of the vast majority of public funds to “absorb money” has been further enhanced. China Merchants Fund’s net profit increased by 77% year-on-year, and small institutions such as Zheshang Fund and China Overseas Fund will turn from losses to profits in 2021. “The strong are always strong” is becoming more and more obvious in the industry, and the survival status of small and medium-sized fund companies is showing a differentiated pattern.
Most of the public offering net profit increased year-on-year
As of March 30, according to incomplete statistics, 27 of the 33 public fund companies that have disclosed their 2021 performance have achieved positive year-on-year growth in net profit. Among them, the net profit of 21 companies increased by more than 20% year-on-year, and the net profit of 9 companies increased by more than 50% year-on-year. As a large public fund company, China Merchants Fund’s net profit in 2021 will increase by 77% year-on-year. Guohai Franklin Fund’s net profit in 2021 will increase by nearly 70% year-on-year.
According to the 2021 annual report of China Merchants Bank, the net profit of China Merchants Fund in 2021 exceeded 1 billion yuan for the first time, reaching 1.603 billion yuan. For public funds, fund management fees are the company’s main source of revenue, and the company’s revenue performance is often closely related to the fund management scale. By the end of 2021, the scale of non-monetary public funds of China Merchants Fund reached 548.345 billion yuan, a year-on-year increase of 55.40%.
On March 29, the 2021 annual report released by Haitong Securities showed that Wells Fargo Fund will achieve revenue of 8.306 billion yuan and net profit of 2.564 billion yuan in 2021, a year-on-year increase of 55.24%. As of the end of 2021, the total asset management scale of Wells Fargo Fund exceeded 1.3 trillion yuan, a record high. Among them, the management scale of public funds was 889.7 billion yuan. At the same time, Wells Fargo Fund has made efforts to innovate its business, and the company has obtained the qualification for fund investment advisory business.
Among small and medium-sized fund companies, Guohai Franklin Fund and Chuangjin Hexin Fund have become the representatives of accelerated growth with high net profit growth rate. On March 17, Guohai Securities released its 2021 annual report showing that in 2021, Guohai Franklin Fund will achieve an operating income of 815 million yuan and a net profit of 267 million yuan, a year-on-year increase of 69.28%. On the evening of March 28, the 2021 annual report released by the first venture shows that the Chuangjin Hexin Fund will achieve a revenue of 897 million yuan and a net profit of 152 million yuan in 2021, a year-on-year increase of 60.11%.
Head public offering “The Strong and the Strong”
Although the vast majority of public offerings will achieve “big strides” in performance in 2021, the industry’s revenue structure has not changed significantly, and the phenomenon of “strong players” in the industry is obvious.
As of March 30, the top ten positions in public offering revenue performance were E Fund Fund, China Universal Fund, ICBC Credit Suisse Fund, GF Fund, Wells Fargo Fund, China Asset Management, Industrial Securities Global Fund, China Southern Asset Management, Bank of Communications Schroders Fund, Bosera Fund occupy.
In 2021, the revenue levels of these top ten companies have reached a new level compared with 2020. In 2020, among the 33 public offerings mentioned above, only E Fund Fund and China Universal Fund have net profits of over 2 billion yuan, and 8 companies including ICBC Credit Suisse Fund and GF Fund have net profits of over 1 billion yuan. In 2021, among the top ten companies, only BOCOM Schroders Fund and Bosera Fund will have a net profit of less than 2 billion yuan. E Fund Fund took the top spot in the industry with a net profit of 4.535 billion yuan, and China Universal Fund ranked second with a net profit of 3.263 billion yuan. The net profit of ICBC Credit Suisse Fund, GF Fund, Wells Fargo Fund, China Asset Management, Industrial Securities Global Fund, and Southern Asset Management all passed the 2 billion yuan mark.
Among the top fund companies, China Merchants Fund has moved up the ranking with a higher net profit growth rate. China Merchants Bank’s 2020 annual report stated that in 2021, in terms of multi-channel customer service, the scale of new products issued by China Merchants Fund exceeded 100 billion yuan during the reporting period, creating China Merchants Fund’s “Rui” series of “fixed income +” brands, and through strengthening The operating advantages of the Internet platform have cultivated a customer base of tens of millions of China Merchants Fund. At the same time, China Merchants Fund has improved the product distribution of public funds, and innovative products such as Science and Technology Innovation and Entrepreneurship 50, public MOM, and enhanced ETFs have been launched.
The division of small and medium-sized institutions
Some small and medium-sized fund companies that have been in a state of loss for a long time will usher in a good opportunity to make profits in 2021. For example, Zheshang Fund has achieved its first profit in nearly four years, and China Overseas Fund has turned losses into profits.
According to the 2021 annual report released by Zheshang Securities, Zheshang Fund will achieve a revenue of 230 million yuan and a net profit of 21.4086 million yuan in 2021. This is the first profit for Zheshang Fund since 2018. According to the 2021 annual report of Guolian Securities, China Overseas Fund will achieve a revenue of 183 million yuan and a net profit of 5.4873 million yuan in 2021, achieving profitability.
However, there are still some small and medium-sized fund companies that are in “poor condition”, such as Nanhua Fund and Founder Fubon Fund in 2021. Not only did they fail to make profits in 2021, but their losses further expanded. On March 30, Founder Securities released its 2021 annual report showing that Founder Fubon Fund will achieve a net profit of -19.9092 million yuan in 2021. The 2021 annual report of Nanhua Futures shows that in 2021, Nanhua Fund will achieve an operating income of 25.8546 million yuan and a net profit of -28.4685 million yuan.
