With the departure of many fund managers, many researchers and fund manager assistants have begun to “post”, and whether this can stabilize the style of fund companies and fund products remains to be tested by the market.
Editor’s note: This article comes from WeChat public account “ Economic Observation Network ” (ID: eeojjgcw), author Hong Xiaotang.
“There is a lot of pressure. Although this year’s performance is not bad, it may not have such a good performance next year. I want to take a break and move to private equity next year.” A fund manager who has left this year frankly told the Economic Observer.
Facing the company ’s performance rankings and last elimination, the fund manager felt very anxious, “This kind of pressure is not as good as running away, but also adjusting the rhythm by myself”.
This situation also occurred to another fund manager interviewed by the reporter. A fund manager who left in a small and medium-sized public equity institution in East China stated that his performance ranking among similar fund managers was not high, mainly due to his own style. It has always been on the blue-chip market, and this year there is no wave of quasi-tech stocks. The year-end award assessment is calculated based on the annual performance rankings. In fact, it can not get much. At the same time, there are new opportunities. Year-end award resolutely left.
Many fund managers have chosen to resign in 2019. Statistics from reporters found that the number of fund managers who have left during the year has exceeded 200, involving nearly a hundred fund companies; while many fund managers have left, many researchers and fund manager assistants Began to “post”, and whether this can stabilize the style of fund companies and fund products remains to be tested by the market.
Resignation wave
Although this year’s market is volatile and rising, consumption and technology growth can support the year-round growth, but the statistics of reporters found that the number of fund managers leaving this year is higher than in previous years. According to wind data statistics, as of December 19, 2019, the number of fund managers who have left the company during the year was 227, involving 94 fund companies, and the rate of change in the entire public market of 2048 fund managers exceeded 11%.
Among them, Guangfa Fund has the largest number of departures, with 7 leaving fund managers; Huitianfu Fund, Penghua Fund, Ping An Fund, TEDA Manulife Fund, Chuangjin Hexin Fund and Oriental Fund all have 6 baseManager Kim chose to resign during the year.
The above figures have increased to varying degrees from the 194 departing fund managers in 2018 and 170 in 2017.
Why are there more fund managers than previous years who choose to leave when the A-share market has a high profit effect? Reporters learned from multiple interviews that although some fund companies have adjusted their assessment systems to varying degrees. The adjustment direction is mainly focused on long-term performance of three to five years, but short-term performance during the year cannot be completely ignored, and in practical operations such as the end of year award In the assessment, short-term performance is also one of the assessment factors, and most institutions still implement the last elimination mechanism, which makes fund managers that are not outstanding in long-term performance but short-term performance are not ideal, and will choose when there is a new opportunity “Restart”.
“There are still some fund managers who take advantage of this year’s good performance and can talk to other agencies about a higher salary and choose to leave.” A person in charge of a large fund company said.
However, the reporter was informed that some fund managers were also issued a “customer order” because of poor performance. For example, a fund manager of a public equity institution in South China was fired by the company in July this year.
According to public data, several funds it has managed since 2016 have generally shown losses during the three years in charge, and most funds have lost more than 10%, although the announcement shows that they have “The reason” resigned, but the reporter learned from the affiliated fund company that the fund manager was indeed forced to leave because of poor performance.
Coincidentally, among the fund companies that have left the most this year, some fund managers have also left due to their performance returns failing to outperform similar funds.
For this phenomenon, from the perspective of the fund industry, the survival of the fittest should be a normal phenomenon of the development of the industry, and it is also the industry’s normal for fund managers to leave due to poor performance.
However, some public fund practitioners also said that although the company always says to look at long-term performance, it will still make short-term performance rankings public internally. The fund manager ’s psychological pressure is too high, and some will depart from their previous insistence and choose Respond to aggressive tactics.
The newcomer is waiting to be tested
It is worth noting that according to reporter statistics, as of December 19, the number of newly hired fund managers in 2019 far exceeded the number of departing fund managers, reaching 443, and with the addition of new fund managers, the composition of the public fundraising team presents The trend of youth, according to Wind data, the average tenure of fund managers is only 3.42 years.
At present, the fund company with the largest number of fund managers is Harvest Fund. The company has a total of 59 fund managers. Reporters have found that there are 7 fund companies with more than 50 fund managers. In addition to Harvest Fund, there are Boshi Fund, Huaxia Fund, ICBC Credit Suisse Fund, E Fund Fund, Wells Fargo Fund, South Fund.
Among newly hired fund managers, the number of new fund managers hired by Harvest Fund and E Fund in the yearAt most, it reached 12; followed by Wells Fargo Fund, Southern Fund, Tianhong Fund, Guolianan Fund, and the number of newly hired fund managers of the four fund companies reached 9.
In terms of tenure, with the continuous influx of young fund managers, the proportion of fund managers with less than three years is the highest, and in terms of quantity, there are 1,112 of them accounting for over 53%. In addition, fund managers who have served less than one year account for nearly 20% of all fund managers.
The reporter reviewed the data and found that most of the new fund managers have been promoted within the company, basically from fund company industry researchers to fund manager assistants, to “single choice” to manage their own products, and from researchers to fund managers. The transfer time is generally more than 4 years. “With the departure of the original fund manager, new researcher posts and further younger fund managers may become a trend, but investment often has higher requirements for experience. Can new fund managers let fund companies in terms of long-term performance? The investment research line of the company continues, and it still needs to be verified by the market. “Products from a public offering agency in Beijing said.
In fact, the frequent departure of public fund managers has also allowed more industry talents to gradually flow to private equity or other fields. Some analysts believe that the public offering industry should strengthen the construction of talent mechanisms through multiple methods such as equity incentives.
“The key to the asset management industry is people, but due to industry incentives, insufficient product innovation, etc., more and more publicly-funded investment and research talents are transitioning to the private equity sector, which will make private products more competitive. Strong, while public fundraising talents are constantly drained. “A public fundraising agency official said,” The public fundraising industry should reflect on talent building and mechanism evaluation issues, and retain excellent fund managers. “