202111On October 20th, CCB Fund will issue its first MOM, named CCB Zhihui Preferred One-year Holding Period Mixed Manager (MOM). Since then, the domestic public offering MOM business has officially set sail.
What exactly is a mother fund? What are the characteristics of such a fund?
MOM fund literally means manager among managers. In overseas markets, such funds have developed very well. In the domestic market, it is still a new continent.
Simply put, MOM funds entrust the assets of the fund to multiple fund managers or these fund managers provide investment advice.
Here we should distinguish between mom and FOF. FOF is a fund in a fund, which is equivalent to a fund portfolio. It invests the fund assets in other funds, and MOM entrusts the fund assets to different fund managers for management.
However, MOM is not as simple as a portfolio manager, but improves the rate of return on the basis of diversifying risks as much as possible.
For example, a manager's stock investment strategy and a manager's futures investment strategy have the same rate of return and volatility. If the two strategies are combined, because the correlation between the two strategies is relatively low, the risks are dispersed, and the result is to make the same money and reduce the risks.
The first approved MOMs in the market are:
China Merchants Huirun regularly opens a hybrid initiative manager (MOM) for one year.
Penghua Select Qunying Flexible Configuration Mixed Manager (MOM) with one-year holding period.
Jianxin Zhihui Select Mixed Manager (MOM) with a holding period of one year.
Huaxia Borui One-year Holding Period Mixed Manager (MOM)
Jinchuang Hexin Group regularly opens a one-year mixed manager (MOM).
All five funds have set a closed period or holding period, which is also to avoid investors' intraday trading and to enable fund managers to better implement their investment strategies.