1. Losses are counted as investors.
1, investment losses, whether stocks or funds, are borne by investors themselves.
2. Private equity funds have suffered losses, and investors have borne part of the losses. The fund is "at the buyer's own risk", and the fund manager is responsible for the management and investment of products, and draws remuneration according to the investment performance. There is no "risk * *".
Two. Loss measurement of private equity funds
1. For those funds with poor performance rankings, you can consider redemption.
2. The fund manager changes, or the core figures of the investment research team of the fund company leave. In these cases, you can also consider redeeming your funds;
Third, the risk control of private equity funds.
1, manager deposit
The fund manager pays the deposit 10%-30% to work together with the client's assets. Generally, the market value falls to the manager's capital contribution limit to close the position, so as to protect the safety of customers' funds.
2. Income distribution of fund managers
In addition to symbolic management fees, fund managers can also get performance rewards. The income sharing ratio of managers is related to the guaranteed income and the degree of investor's intervention in the operation of fund managers.
3. Direct intervention by investors
Fund managers often let some investors with large funds directly predict the use of funds. Managers' major investment decisions need to be recognized by investors, who have the right to veto managers' investment decisions.
4. Account setting and subdivision
Maintaining the independence of private equity fund property is the basic feature of the fund. Private equity funds should strictly distinguish between private equity fund managers' own assets and private equity fund assets through account setting, division and accounting; When managing several funds at the same time, strictly distinguish different private equity fund assets.
5. Investor withdrawal mechanism.
The establishment of investor withdrawal mechanism actually gives investors the right to "vote with their feet", that is, private equity funds must be allowed to be redeemed after being closed for a period of time. This method is more direct and effective for the constraint of fund managers. The system design to reduce the moral hazard of private fund managers mainly depends on the trust obligation of fund managers, and is completed through the supervision right of fund investors, the supervision obligation of custodians, the preventive mechanism beforehand and the remedial measures afterwards.
What are the risks of buying private equity funds?
1, legal and policy risks
For domestic private equity funds, the main problem at present is the lack of legal basis and policy support, which makes them on the edge of law and policy. So far, the provisions of China's Securities Law, Trust Law and other laws have not clearly defined the meaning, source of funds, organization and operation of private equity funds.
On the surface, many funds seem to have legal status, but if we delve into their business, some of them are easily associated with "underground fund raising" and "illegal fund raising". It is precisely because the legal status of private equity funds is not recognized that their business activities have always been outside the supervision of laws and policies. In the event of default, fund managers and investors are not protected by law, so they face great legal and policy risks, and the larger the fund, the higher the legal and policy risks.
2. Moral hazard
The organizational structure of private equity fund is a typical principal-agent mechanism. Limited partners hand over funds to general partners for operation, and only make general provisions on the use of funds, and usually do not interfere with the specific operation of fund managers.
In the process of operation, both private fund managers and fund holders pursue the expectation of maximizing investment income. The harder the private fund manager works, the greater the income will be. However, in addition to fixed management fees, private fund managers can also get performance commission fees. When the performance commission fee is greater than the management fee, private fund managers will not adopt the investment strategy of maximizing the interests of both parties, because this choice can not maximize their own interests. On the contrary, it may abuse its power to pursue more personal interests and make the assets of fund holders bear greater risks. Therefore, even if private equity funds have superior incentive arrangements, the moral hazard of agents still exists.
3. Operational risk
The investment strategy of private equity funds is hidden, and there are generally no strict restrictions on the information disclosure of private equity funds in the world, which will cause serious information asymmetry and is not conducive to the protection of fund holders' interests. In the absence of external restraint mechanism, the speculative pursuit of interests by private equity funds may make them collude with listed companies, conduct insider trading, manipulate stock prices and other illegal acts to obtain huge profits. These operational risks will bring great harm to investors and the market. The personal integrity of fund managers is difficult to measure. If the manager does not abide by the contract, it will cause losses to investors.
Generally, the liquidity risk of private equity funds has a long lock-up period, during which the funds are not allowed to withdraw, so as to ensure the continuity and stability of fund operation and not affect the investment strategy of fund managers. Private equity funds cannot be listed and traded, and the risk cannot be transferred at any time. The holders can only realize it after the holding period expires. Because it is difficult to realize the funds during the closed period of the fund, the fund holders may have a debt crisis or even bankruptcy.
Private equity funds suffer losses, and the losses are partly borne by investors. The fund is "at the buyer's own risk", and the fund manager is responsible for the management and investment of products, and draws remuneration according to the investment performance. There is no "risk * *".
Legal basis:
Interim Measures for the Administration of Industrial Investment Funds
Article 20 A fund manager shall meet the following conditions:
(1) The paid-in capital of a legally established company or partnership in Chinese mainland shall not be less than RMB100000 yuan;
(2) Having at least three senior managers with more than three years' experience in asset management;
(3) The managers of industrial investment funds and their directors, supervisors, senior managers and other employees have not committed any major illegal acts in the last three years;
(4) Having business premises, safety precautions and other facilities related to the fund management business that meet the requirements;
(5) Having a good internal governance structure and risk control system.