"Purchased bank wealth management products are terminated early", "Bank wealth management products performance comparison benchmark has been lowered"... Recently, some investors reported that their bank wealth management products have been adjusted.
The reporter noticed that recently, a number of banks and wealth management companies such as Agricultural Bank of China Wealth Management, CNCB Wealth Management, Shanghai Pudong Development Bank have terminated the operation of some wealth management products in advance, most of which are fixed-income products; A number of bank wealth management subsidiaries have adjusted the benchmark for performance comparison of wealth management products.
Some industry analysts pointed out that it is expected that the early termination of operation of wealth management products will continue to occur, but it will not become a common phenomenon, and the performance comparison benchmark of pure fixed income products may be slightly lowered.
Text and photos/Wang Chuhan and Zhao Fangyuan, all media reporters of Guangzhou Daily
More than 400 wealth management products were terminated early and most of them were fixed income products
Recently, ABC Wealth Management, CNCB Wealth Management, Zhongyuan Bank, Shengjing Bank, Shanghai Pudong Development Bank and many other banks and wealth management companies have terminated the operation of some wealth management products in advance.
Specifically, ABC Financial Management issued an announcement stating that due to the expected strong uncontrollable factors in the follow-up market, the net value of products may fluctuate greatly. In order to better provide product services and protect the rights and interests of investors, it is planned to advance on August 24. The first phase of the “ABC Tongxin Two Years Open” value selection RMB wealth management product (exclusively for new customers and new funds) will be terminated, and the product expiration date will be changed simultaneously.
The announcement issued by CNCB Wealth Management shows that after careful evaluation, the company decided to terminate CNCB Wealth Management Wisdom Elephant Fixed Income Enhanced FOF one-year fixed-opening No. 15 wealth management product on August 9, and closed the subscription and redemption on August 9. back to the transaction.
Regarding the reason for early termination, CNCB Wealth Management stated that in accordance with the relevant provisions of Article 12 of the product specification, in order to protect the interests of investors, the wealth management product manager has the right to voluntarily terminate the wealth management product according to the actual situation of the fund operation of the wealth management product.
Data show that since the beginning of this year, more than 400 wealth management products have been terminated early in the market, accounting for about 1.5% of all wealth management products, most of which are fixed-income products.
Analyst Liu Yinping of Rong 360 Digital Technology Research Institute analyzed that there are usually three reasons for the early termination of wealth management products: first, the product investment performance is not satisfactory, and it will be difficult to achieve the expected investment return for a period of time in the future; second, the product triggers early termination clauses, such as The share of wealth management is lower than the minimum standard; thirdly, during the handover operation of new and old products, the old products are terminated early.
Is it legal to terminate the operation of wealth management products early?
"There is usually such a clause in the financial product specification: Banks and wealth management companies have the right to terminate the product in advance according to the operating conditions or changes in regulatory policies, so the early termination of the operation of the financial product is compliant, but the early termination of the product may harm investors. rights and interests." Liu Yinping pointed out that the early termination of the operation of wealth management products will continue to occur, but from the perspective of the entire wealth management market, the proportion of products terminated early is relatively low and will not become a common phenomenon.
Financial product performance comparison benchmarks are generally lowered
At the same time, a number of bank wealth management subsidiaries have adjusted the performance benchmarks of wealth management products.
Among them, Bank of China Wealth Management recently announced that it will adjust the performance comparison benchmark of the "BOC Wealth Management-Wanfu (Quarterly Gain) 007" (WFJZY007A) product from August 9, 2022, from 2.70%-4.00% (annualized ) is adjusted to 2.50%-3.80% (annualized), which is a 20 basis point reduction from the original performance benchmark.
CMB Wealth Management also announced that it plans to adjust the performance comparison benchmark for the fourth investment cycle of CMB Wealth Management Zhaorui Jinding’s Seven-Month Fixed-income Financial Plan No. 1 on August 17, and the adjusted performance comparison benchmark 2.8%-4.5%.
Zhou Maohua, an analyst at the Financial Market Department of China Everbright Bank, believes that recent market interest rate movements and equity market fluctuations will affect the income level and net worth fluctuations of wealth management products.
Many banks and wealth management subsidiaries lowered their performance comparison benchmarks mainly because after the transformation of wealth management to net value, the net value of wealth management products was greatly affected by the market environment. Institutions adjusted their income benchmarks according to changes in the market environment to guide investors’ reasonable expectations and help reduce individual wealth management. Investors complained about earnings deviating from reference benchmarks.
Regarding the next development of wealth management products, Liu Yinping said that the performance comparison benchmark of wealth management products depends on monetary policy and market liquidity on the one hand, and asset allocation on the other hand. Liquidity will probably remain loose for a period of time in the future. The benchmark for performance comparison of similar products may be slightly lowered.
Investors should purchase wealth management products from the perspective of their own needs and purchase wealth management products that meet their own risk appetite and liquidity needs, and should not excessively pursue high returns on products.
Financial Insurance Tips
Families with high requirements for liquidity are not recommended for large investment
The reporter noticed that there are recent insurance sales suggestions, try to choose products with a longer investment period, lock in income in advance, and avoid the risk of falling interest rates.
"The bank's interest rate is still falling. One of our insurance wealth management products has a fixed 3.5% compound interest, which is suitable for medium and long-term investment. The most important thing is that we also have a life insurance protection function." The sales manager of Pacific Insurance told reporters.
With the recent news of the central bank's interest rate cut, Guangzhou citizen Mr. Chen also began to pay attention to wealth management insurance.
"Now that everyone's investment tends to be stable, they must also ensure a certain amount of cash flow. The central bank has cut interest rates, and the income of fixed-income wealth management products is expected to decline. Compared with some fixed-income wealth management in banks, annuity insurance 'profits roll over', investment The income is relatively high, and it may still be considered." Mr. Chen said.
The reporter learned that wealth management insurance is a new type of insurance product that integrates insurance protection and investment functions, and is a new type of life insurance.
However, industry insiders also reminded that the liquidity of medium and long-term wealth management insurance is poor, and the lock-up period can be as long as several decades. Once purchased, it means that the funds cannot be turned around for a long time.
If you need money urgently in the middle, you can only get the cash value by surrendering the insurance, which is not worth the loss.
For families with high financial liquidity requirements, it is not recommended to invest a lot to avoid affecting the family's financial plan.