Yesterday, Guoyuan Securities issued an announcement stating that a holders' meeting is about to be convened to deliberate on the proposal to transform the Guoyuan Yuanying Four-Month Regularly Open Bond Type Collective Asset Management Plan into the Changsheng Yuanying Four-Month Regularly Open Bond Type Securities Investment Fund.

This also implies that the manager of the Guoyuan Yuanying Four-Month Fixed-Open Bond Product will change to Changsheng Fund. Guoyuan Securities is the largest shareholder of Changsheng Fund, holding 41% of the shares.

Another collective asset management plan is planned to be "handed over" to a public fund subsidiary.

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On the evening of October 14, Guoyuan Securities announced that, considering the needs of the shareholders and the long-term development of this collective plan, to fully protect the interests of the shareholders, the manager decided to hold a collective plan shareholders' meeting by correspondence, deliberating on the proposal to change the product manager to our public fund subsidiary in which we have a stake, Changsheng Fund, and the corresponding transformation of the Guoyuan Yuanying Four-Month Regularly Open Bond Type Collective Asset Management Plan into the Changsheng Yuanying Four-Month Regularly Open Bond Type Securities Investment Fund.

According to the announcement, the Guoyuan Yuanying Four-Month Fixed-Open Bond Collective Asset Management Plan came into effect on October 28, 2021, with Guoyuan Securities as the collective manager and China Merchants Bank as the custodian. According to the contract, the original plan was to expire on October 27, 2024.

The announcement shows that after the change, the product investment manager will change from "investment managers Li Yating and Xia Zhenhui under Guoyuan Securities" to "fund manager Zhang Jian under Changsheng Fund". At the same time, there is also a reduction in fees, with the product management fee rate adjusted from "0.50%" to "0.30%"; the custody fee rate is adjusted from "0.15%" to "0.10%", but a new sales service fee is added, with an annual rate of "0.15%". The product's "active investment in credit bonds with a credit rating range of AA and above" is also adjusted to "active investment in credit bonds with a credit rating range of AA+ and above". In addition, there are corresponding adjustments to the product's accounting firm, valuation method, performance comparison benchmark, etc.

Wind data shows that as of the end of the first half of this year, the scale of the Guoyuan Yuanying Four-Month Fixed-Open Bond Collective Asset Management Plan was 1.247 billion yuan. As of October 14, the return of the product since its establishment was 12.03%, with a net value increase of 2.13% within the year.

Public information shows that Guoyuan Securities is the largest shareholder of Changsheng Fund, with a shareholding ratio of 41%. As of the end of the first half of this year, Changsheng Fund's managed public fund scale was 92.575 billion yuan, a year-on-year increase of 25.96%; in terms of product types, bond funds accounted for the majority, with a scale of 57.045 billion yuan, accounting for more than 60%.

Large collective product transformation is underway.Industry insiders have informed journalists that, in addition to Guoyuan Securities, currently, Dongzheng Ronghui Asset Management Company is actively communicating with Oriental Fund regarding the upcoming maturity of large collective products and negotiating changes.

Last August, Founder Securities announced that for the collective asset management plan of Founder Securities Jinlifang One-Year Holding Period Mixed Type, which was about to reach its three-year maturity, to fully protect the interests of share holders, the company submitted an application for change of registration to the China Securities Regulatory Commission (CSRC), changing the plan's manager to its holding subsidiary, Founder Fubon Fund. This became the first product in the industry where a large collective product managed by a securities company was changed to be managed by its public fund subsidiary.

Several industry insiders have indicated that for large collective products under the public offering reform of securities companies, where the manager itself does not yet have the qualification of a public fund manager, transferring the collective asset management plan to its public fund subsidiary ensures the continuity of the product's operation. This provides a more reasonable arrangement for investors who wish to continue holding and also explores a new direction for some securities company asset management public offering reform products facing "liquidation."

In addition to changing managers, there are still some collective public offering products of securities company asset management within the year, as the three-year reform period "expires," either transforming into private products or "liquidating."

In mid-September of this year, Tianfeng Securities Asset Management announced that its Tianfeng Six-Month Rolling Holding Bond Type Collective Asset Management Plan, effective from September 22, 2021, will reach its three-year maturity. Due to the large number of investors in this collective plan, in line with the principle of protecting the legitimate rights and interests of investors, Tianfeng Asset Management decided to transform this collective plan into a private collective asset management plan. Investors who meet the suitability requirements of private asset management plans can choose to convert their Tianfeng Six-Month Rolling Holding collective plan shares into private asset management plan shares. After the transformation, the remaining investors should be qualified investors and not exceed 200 in number, with a minimum initial participation amount of RMB 300,000.

In the same month, Founder Securities Xinyue One-Year Holding Period Bond Type Collective Asset Management Plan, First Capital Chuangxiang Pure Bond Bond Type Collective Asset Management Plan, and others were liquidated. The reason was the expiration of the存续期限, triggering the termination conditions stipulated in the "Asset Management Contract," which should be terminated, and the collective plan entered the liquidation process.

In early October, Donghai Securities issued a prompt announcement regarding the convening of the Donghai Securities Haiying Six-Month Holding Period Mixed Type Collective Asset Management Plan shareholders' meeting via communication. This collective asset management plan will reach its three-year term in December this year. In response to changes in the market environment and to better protect the interests of the collective plan shareholders, Donghai Securities decided to convene a shareholders' meeting to review the termination proposal of the plan.

Wind data shows that the number of large collective public offering reform products (calculated by combining different shares) totals 190, with a combined management scale of 352.045 billion yuan as of the end of the first half of this year. Among them, 11 products have a scale exceeding 10 billion yuan, with the largest scale being China Merchants Asset Management Zhiyuan Tian Tian Li, reaching 38.537 billion yuan. It is worth noting that among the above 11 products, the vast majority are money market funds, with only 2 bond funds.

An industry insider in Shanghai stated that with the advancement of regulatory provisions and an increasing number of securities firms obtaining public offering licenses, in the future, it is likely that more securities company collective asset management plans will change to be managed by securities public offering subsidiaries after their maturity.