Fund subsidiaries and trusts belong to the trust relationship in law, and can invest in the form of raising single funds and pooled funds. Funds can be invested in various assets (including varieties traded on exchanges or assets such as equity bonds and rights that have not been transferred through exchanges); In some respects, fund subsidiaries are similar to securities companies in asset management. They can raise a single fund to invest in various assets, or they can raise collective funds to participate in the products transferred by exchanges and collective trusts. However, there are still significant differences in investment restrictions, investor restrictions, investment efficiency and regulatory constraints among trust, brokerage asset management and fund subsidiaries.

First, the difference between a fund subsidiary and a trust.

1, investment restriction

The trust plan cannot invest in the bill assets in the bank-trust cooperation; Fund subsidiaries are not restricted in various investment targets. Legal basis: The CBRC issued the Notice on Bill Trust Business of Trust Companies at the beginning of 20 12. According to the requirements of the Notice, trust companies are not allowed to carry out various forms of bill asset transfer/transferee business with commercial banks. At the same time, for the existing bill trust business, the trust company should strengthen risk management, and no new bill business should be carried out during the duration of the trust project, and it should be terminated immediately after the expiration and cannot be extended.

2. The number of investors is limited

No more than 50 natural person investors with a trust plan of less than 3 million, and no more than 200 natural person investors with a fund subsidiary of less than 3 million. Legal basis: The Administrative Measures for Collective Fund Trust Plans of Trust Companies stipulates that "there is no limit to the number of natural persons and qualified institutional investors with a single collective fund trust plan but a single entrusted amount of more than 3 million yuan." ; The Pilot Measures for Asset Management Business of Specific Clients of Fund Management Companies stipulates that "the number of clients of a single asset management plan shall not exceed 200, but the number of investors with a single entrusted amount of more than RMB 3 million is not limited".

3. Investment efficiency

Trust plans to invest in real estate projects need to be approved in advance, and fund subsidiaries do not need to approve real estate projects. Legal basis: The Measures for the Pilot Management of Real Estate Investment Trust Plans of Trust Companies stipulates that "when a trust company applies for establishing a real estate investment trust plan, it shall submit the following documents to the China Banking Regulatory Commission" and "apply for issuing a real estate investment trust plan". After approval, the trust unit can be sold. "

4. Regulatory constraints

There are many regulatory constraints on trusts, and relevant departments have successively issued documents to restrict and prohibit trust companies from carrying out bill business, real estate business and government platform business (such as "Document No.462" of four ministries and commissions); At present, there are few restrictions on fund subsidiaries.

5. Net capital constraint

Trust companies issue collective fund trust plans, which occupy more net capital; There is no net capital limit for fund subsidiaries at present. Legal basis: Provisions in the Measures for the Administration of Net Capital of Trust Companies.

6. Investment ability

Trust companies' investment ability in the capital market is generally weak; Relying on the investment research team and investment management experience of the parent company, the fund subsidiaries have advantages in investing in financial products traded on the exchange.

7. Payment rules

In practice, the current collective fund trust plan will abide by the agreement of "rigid redemption" by default; However, the special asset management plan of the fund subsidiary does not do this. The so-called "rigid redemption" means that after the trust expires, the trust company must distribute the principal and income to the investors. When the trust plan can't be paid as scheduled or it is difficult to pay, the trust company needs to handle it at the bottom. In fact, there is no legal requirement for trust companies to make rigid payment in China, which is just an unwritten rule in the trust industry.

8. Collective financing capacity

Some large trust companies have special direct sales teams and stable fund-raising ability, and some can invest with their own funds or trust fund pools, which is relatively safe when operating large-scale fund-raising projects; However, the fund subsidiaries have been established for a short time, and the fundraising channels are limited, so the sales pressure of collective products is greater. However, if the shareholders of fund subsidiaries have strong sales strength (for example, shareholders are third-party sales organizations or shareholders are trust companies with strong self-sales strength), some sales problems can also be solved.