Mom, what does the product mean?
MOM products refer to Public Offering of Fund or private asset management products managed by securities and futures institutions (i.e. managers), which are in line with multiple assets and investors. This is the English word for Managerofmanagers, and is often called "the manager's manager". MOM fund focuses on selecting people, and the fund manager entrusts the investment sub-account to the selected investment manager to help customers obtain long-term preservation and appreciation of assets.
Generally, the MOM products we see have two obvious characteristics. The first is to entrust some or all assets to two or more qualified third-party asset management institutions (namely investment consultants) to provide investment consulting services. The second is to divide assets into two or more asset units, and each asset unit opens a separate securities and futures account. In this way, MOM products can realize the combination of multi-assets, multi-strategies and multi-managers, and achieve the purpose of stabilizing risks and improving returns.
On the surface, this fund is very good. Basically, its scope of operation is extremely extensive, and it can obtain huge benefits. However, in practice, we should also pay attention to the fact that most of the information of private placement managers invested by MOM is opaque, so the callback is very important, especially the evaluation of past performance and risk control will be extremely difficult, and the ability requirements for the main managers will be higher.
From the above, we can find that MOM products are similar to FOF funds in many characteristics, so is it different from FOF funds?
1 Different investment methods. FOF realizes asset allocation by selecting high-quality sub-funds, while MOM chooses the best managers to manage the funds in blocks.
The two are different in nature. FOF fund is the investment sub-fund of the parent fund, while MOM determines the investment direction of the parent fund, and then gives the money to the relevant managers for independent management.
They communicate in different ways. FOF funds are similar to the relationship between companies, while MOM products are equivalent to the relationship between bosses and subordinates.
4 The approval methods of the two are different. FOF funds need to be approved by the CSRC, and MOM products can be filed with the association.
The two levels are different. MOM products have only one product structure, allowing investment in another asset management product, while FOF products cannot.
In a word, MOM products are essentially for bank wealth management, so we can obviously notice the difference between it and other wealth management products.