yield, product term, transaction structure, risk control measures and liquidity.

rate of return:

rate of return is the basic element of trust products, and the rate of return of trust products refers to the expected rate of return that the beneficiaries of the trust products may obtain as agreed in the trust contract.

Because trust products can't guarantee guaranteed income, trust companies usually show investors the income level of products in the form of expected return.

Take the financing collective fund trust plan as an example. Generally, the sum of investors' expected income plus trust fees such as trustee's trust remuneration, bank custody fee and financial consultant fee is the total financing cost borne by the financier.

product term:

product term is another basic element of trust products. The term of trust products refers to the length of time between the trust establishment date and the trust termination date stipulated in the trust contract, which is generally reflected as a fixed term in the trust contract.

some terms appear in the form of "m years +N years", which usually means that when the duration of the trust reaches m years, if the extension conditions agreed in the trust contract are met (such as the trust property is not fully realized), the trust can be extended for n years.

The term of trust products and the investment term are two different concepts. In general, the investment term of investors is the trust term of trust products. However, for trust products that are open and can be purchased and redeemed during the open period, the investment term may be shorter than the trust term.

for example, the trust period of a trust project is 3 years, and the investment period of investors who invest in the trust plan may be 1 year, 2 years or 3 years.

transaction structure:

transaction structure is the structure and combination of various trust product elements such as trust term, yield, capital utilization mode, investment field and risk control measures.

We can visually understand the transaction structure as a mechanism that connects the "people, things and things" of trust products.

"person" refers to the parties to a trust, including the trustor, trustee and beneficiary; The "thing" is the trust property, which has different forms of expression at different stages, and at the same time, it is different because of different ways of using funds.

"event" refers to a series of behaviors that the trustor entrusts his legally owned property (such as funds or property rights) to the trustee, and the trustee manages and uses the trust property according to the wishes of the trustor and realizes the trust interests of the beneficiaries.

risk control measures:

risk control measures are the core of trust product design, and the risk control of trust projects runs through all stages from project screening to project termination, such as project review, product design and due payment.

In the project review stage, risk control is carried out through counterparty selection, due diligence and independent review between China and Taiwan; In product design, risk control is carried out by means of mortgage pledge guarantee and transaction structure design.

after the trust expires, measures such as asset management company takeover and shareholder coordination should be taken to deal with possible risks.

liquidity:

the liquidity of trust products can be understood as the degree of difficulty for investors to convert their trust beneficial rights into cash assets, which can be measured by the maximum loss when realizing. The greater the loss when realizing, the more difficult it is to realize and the weaker its liquidity.

from the establishment to termination of trust products, in theory, the beneficial right of trust can be converted into cash assets by means of transfer, redemption, termination of distribution or pledge of loans, so as to meet the liquidity needs of investors.

Reference:

Trust product refers to a financial management product that provides investors with low risk and stable income return. Trust varieties are very diverse in product design, and each will have different characteristics. There may be great differences in risk and income potential among various trust varieties.

loan trust refers to the trust method that absorbs funds through trust to issue loans. This type of trust product is the largest one.

As a traditional business, loan has relatively simple business process and mature risk control methods, so it is logical for trust companies to choose this way to enter the market and establish their brand in the early stage of exhibition industry.

Investment by means of loans makes this kind of trust products have the following characteristics in terms of income risk:

First, the income of the project is capped. The income comes from loan interest, and the relevant interest rate standards of the People's Bank of China are implemented. This means that the client's income limit is the loan interest rate, and he is faced with the management fee of the trust company, which may deduct this income.

Different ways of accruing management fees mean that the degree of income deduction is different, which directly affects investors' income.

Secondly, although the trust company has selected relevant projects for loans based on its own professional skills, it can only rely on the trust of the trust company due to asymmetric information.

However, after the reorganization of trust companies, their own credit mechanism has not been established, and the credit risk of loans must be controlled through external mechanisms.

Therefore, the risk control of trust is important for investors. First of all, it is necessary to understand and judge whether to invest in it.

Equity Trust:

This type of trust product raises funds by setting up trust for the equity that can bring cash flow. Its outstanding advantage is that it realizes the realization of intangible assets of the company, thus speeding up the capital turnover of the equity-owned company.

The replacement of different growth assets is realized, which is beneficial for the company to grasp favorable investment opportunities, quickly intervene and maximize the company's value.

financial leasing trust:

trust companies raise trust funds by setting up trust plans and apply them to financial leasing business. Through strict professional and procedural management, they can realize trust income and provide social investors with safe and stable financial returns.

Real estate trust:

Land and all kinds of building facilities above or underground are collectively called real estate. At present, there are many enterprises that generally invest in real estate development.

since the measures for the administration of trust companies and the measures for the administration of trust plans of trust companies (hereinafter referred to as the "new measures") were implemented on March 1, 27, China's trust industry has embarked on the road of standardized development.

The outstanding performance is that the innovation of trust products is very active. It can be said that the development of trust industry has entered the fast lane, and trust products have a relatively single variety in the past, moving towards the road of innovation.

Baidu Encyclopedia: Trust Products