This is also why in June, when the money fund is redeemed by the institution, it must carry US dollars. The absolute deviation of Tianzhi Li Tiande Monetary Fund exceeds 0.5%, reaching -0.5243%. The negative deviation is 0.5%, which means that the net value has actually reached 0.995 yuan, but the fund company can continue to give annualized income of one yuan between 1.005 yuan and 0.995 yuan.
Fortunately, most of the large redemptions encountered by the Monetary Fund at present are carried out by institutional investors and have not caused panic among individual investors. If the "money shortage" continues to ferment, causing panic among individual investors and a run on money funds, it will be difficult to clean up.
Looking back on the past year, domestic money market funds have been innovating constantly and their scale has increased substantially, playing an increasingly important role in the market. Fund companies take higher returns as their selling point, and individual investors are also keen to pursue higher returns. The liquidity crisis of the money fund has undoubtedly taught investors a vivid lesson.
It should be noted that the money fund is a low-risk, high-liquidity "quasi-savings" financial management method, and its risks cannot be exaggerated, but investors should also be aware that the "black swan" incident may bring liquidity risks to the money fund and even cause losses.
In the face of centralized and unexpected large-scale redemption, the money fund had to passively sell bonds to deal with redemption. When the yield curve of spot bonds keeps rising under the impact of liquidity, this is tantamount to cashing in and floating losses, thus increasing the deviation of the money fund.
The liquidity crisis encountered by the money fund is undoubtedly an event that can go down in history, but the net value of the fund fell below 1 yuan, which is the first time in the history of domestic funds. In mid-2006, many money market funds in the market lost net income per 10,000 funds in a single day.
The main reason is that the fund manager excessively pursues the high return of the fund and ignores the existence of risks. At the same time, there are some potential fund irregularities during this period. Money market funds that excessively pursue high returns and hold varieties with poor liquidity will gradually expose risks to investors through negative returns.
Since 20 12, the regulatory authorities have named the liquidity risk of domestic monetary funds. On July 20 12, Shanghai Securities Regulatory Bureau warned three kinds of problems in the operation of monetary funds.