On the evening of June 8, 2006, TEDA ABN Amro Monetary Fund's net income per 10,000 funds on that day was -0.2566 yuan, and the annualized rate of return on the 7th fell to 1.6260%, making it the first fund with negative income on that day in the year.
On June 9 of the same year, the daily income of E Fund also showed a negative value. On that day, E Fund's income per 10,000 shares was -0.0409 yuan, and the annualized rate of return on the 7th was 2.2280%. On the 9th, TEDA ABN Amro's earnings per 10,000 shares returned to positive value, and the earnings per 10,000 shares returned to 0.9088 yuan on that day.
According to the analysis, there are only two sources of negative daily income of the money fund. One is the investment operation error, and the other is the active operation to cash out the floating loss.
Crucially, some money funds have an investment orientation of excessively pursuing the rate of return. As a tool of liquidity management, monetary fund should take liquidity management as its primary goal. However, due to the "short-sightedness" of pursuing market scale, some fund managers regard short-term return as the first consideration and ignore liquidity, and even adopt irregular operation methods, further increasing liquidity risk and interest rate risk.