C, an old classmate of the fund company, read this news and quickly sent me a WeChat "This is the supervision telling you to correct your attitude of eating S!" I replied with a wry smile: "Well, yes, maybe we should finish eating before making a statement ..."
As a veteran who entered the trust industry on 20 1 1, he witnessed the full implementation of the new asset management regulations, and also felt the biting of the No.64 document. The draft of the new asset management regulations hung over every trustee like the sword of Damocles. Will the trust companies accustomed to making a fortune silently return to mediocrity, and will the trust industry really lose its "money path"? Can trust companies make big money?
1
There is no "money way" for worthless companies, and trust companies must create new value.
Political economy tells us that value determines price, and price fluctuates around value. Isn't that what trust companies do now? After the regulatory arbitrage derived from the cooperation between real estate and bank and trust gradually disappeared, the "arbitrage" value of trust is declining. If trust companies can't make achievements in the creation of new value, there will naturally be no consideration, and difficult days will really come.
At present, what bothers the trustee most is that whether it is a service trust or a standard trust advocated by supervision, it is either living at a high price and not making money, or it is not good at it. The life addicted to money has become a vegetarian dish, let alone eating it, and even thinking about it feels bleak.
Near the end of the year, we will see various research reports of the trust industry, but most of Chen Xiangyin's words are superficial understanding of the regulatory intention and have not really landed. "The wind rises at the end of the Qing Dynasty", I try to talk about my views on trust companies creating value by analyzing the subtle changes that are taking place in the industry and combining the guidance of supervision. In short, it is how trust companies "make big money".
I want to condense the core content into two sentences and put the outline at the beginning of the article. The first half of each sentence is the original words of Vice Chairman Huang, and the second half is my personal extended understanding.
1, give full play to the institutional advantages of trust companies with both investment and financing, provide enterprises with comprehensive financial solutions in different development stages and different financial demand scenarios, and take the road of specialization and refinement-"Trust should make full use of cross-market advantages";
2. We must improve the specialization level of asset management ability-"To win both ends of the smile curve, specialization is the first."
2
How can trust companies "give full play to the institutional advantages that trust companies pay equal attention to investment and financing"?
It has long been suggested by predecessors in the industry that the trust industry spans the currency, industry and capital market and has incomparable special advantages for other financial institutions. If we carefully study Vice Chairman Huang's speech on February 8, 65438, we suddenly find that it says, "Give full play to the institutional advantages of trust companies that pay equal attention to investment and financing, provide enterprises with comprehensive financial solutions in different development stages and different financial demand scenarios, and take the road of specialization and refinement." Although the two statements are different, the core idea is the same, that is, the cross-market solving ability of trust companies will be the basis for the trust industry to continue to stand in the domestic financial circle.
In practice, many companies began to try to solve problems on the concept of "cross-market" and achieved good results. Take convertible bonds as an example. We all know that under the magnificent capital market this year, convertible bonds have become hot, and convertible bonds have become a steady business. But careful friends will find that compared with snowball and multi-strategy FOF, convertible bonds are rarely used in new related products. The reason is very simple, because the wolf has more meat and less meat, and the winning rate is too low, which leads to low comprehensive yield and does not have the ability to produce products. However, some institutions have found a secret door, that is, through the priority placement of existing shareholders to greatly increase the allocation ratio, and through the simple combination of non-standard and standard products to achieve a win-win situation for trust and major shareholders:
(1) Premise: We confirm that the new convertible bonds have stable and universal excess returns;
(2) Mode: Find the major shareholders who lack their own funds, determine the agreed credit enhancement method, fixed interest rate and income sharing mechanism, and invest in them through the way of income rights;
(3) Income: major shareholders participate in the placement of convertible bonds and sell them immediately after listing, realizing income. The trust company gets back the principal and part of the excess income, and the major shareholders also get a share if they have no money.
In fact, this model is a simple organic combination of "industrial credit+capital market". The bank's credit audit is strict+the capital market is lacking, while the securities firm has no credit function. Under the condition that the trust channel business is strictly suppressed, it is difficult for banks and brokers to practice their "cross-market" ability through the "lending channel". In this mode, trust companies have unique competitive advantages. Trust companies use limited non-standard quota and non-standard flexibility to incite capital market business and establish cross-market competitive advantage. I think there is still a lot of room to make money. Similarly, it is also a successful case that trust companies cooperate with major shareholders of listed companies in the main business of industrial funds.
When the Yongmei incident continued to ferment, many enterprises with acceptable quality were killed by mistake in the panic of the market. Can the trust company transfuse the high-quality target that was killed by mistake through the trust plan? The funds are used to buy low-priced bonds and maintain the issuer's market reputation. Compared with direct crisis investment, more risk control measures can be set at the level of trust plan, with slightly lower returns but better security. Of course, the above model is just a personal idea, and there are still many places that need to be further improved in details. However, I think trust companies have a lot of room to play in the fields of private placement and bulk reduction.
In essence, there are three key points to bring the divergent views back and give play to the cross-market advantages of trust companies:
1, establish a business idea with the capital market as the core: the economic structure has undergone fundamental changes, and trust companies can only walk out of a new world by abandoning the past and conforming to the trend;
2. The core of non-standard bidding is not to deliberately make standard products. Trust companies must give full play to their advantages in the field of non-standard products, so as to radiate the business of standard products and win their own living space in the battle with brokers and funds. Trust companies that cling to non-standard products can only die of thirst in the arid desert. Without non-standard products, it is passive water for trust companies!
3. The creation of any new model is not a whimsical product, but comes from the deep excavation and personalized customization of customer needs. Using the combination of "non-standard+standard", under the premise of meeting the individual needs of financiers, trust companies will certainly develop more interesting new models and create new values different from banks and brokers.
three
Continue to tap the value from both ends of the smile curve and get more profits in the traditional standard business.
If we pay attention to the recruitment information of trust companies, the debt standard team is the focus of human resources, and the debt standard business seems to be easy to scale, which is directly beneficial to solving the problem of high proportion of non-standard trust companies, but the question is, where does the money come from? We all saw the tens of billions of cash profits of Shanghai Trust, but ignored the reputation and customer base formed by the stable operation of this product for more than ten years.
In the transition period of the industry, companies are eager to achieve their goals in one step, but they always ignore some basic common sense. The industry is moving, but it is more blind and restless. I think that if the trust wants to make a pattern on the traditional standard, it must find a way out along the two ends of the smile curve, either to improve its wealth management ability or to be an investment manager to test the water, whether it is to replace the non-standard with multi-strategy FOF or to follow the model of Yunguotou in those years and cultivate its own equity investment team. I think any exploration is valuable.
Let's talk about wealth management ability first. Vice Chairman Huang spent a lot of time on this, but I think most trust companies don't have a good understanding of wealth management capabilities. Many trust companies are still intoxicated with the direct sales scale of tens of billions or even hundreds of billions in the non-standard era. But I don't know, in the future of drastic changes in the industry, when non-standard products are becoming more and more scarce, and when trust wealth needs standard products as its main products, does the account manager of trust wealth center have the strength to fight against the people of banks, brokers and tripartite wealth?
Non-standard is the root of the rapid development of trust wealth in the past, but it has also become the shackles of trust wealth. Products with the general secrets of the Dragon Slayer make marketing invincible, and customers can be happy without spending too much effort, but it has limited the capacity building of account managers for a long time. If the trust company's wealth center can't get rid of the dependence on non-standard, embrace the standard and the equity market, and win the trust of customers with its own professional ability, what is the difference between the trust company and the three-party financial management in the future?
On the asset side, the trust company focuses on the front desk team and hopes to set up an independent department outside the non-standard team to promote the development of the standard letter. However, I think it is difficult for trust companies to have real bidding business without improving the overall cognitive ability of the company's bidding business, especially the attention of the management, and without building a special risk control team for bidding business. For trust companies, standardizing business is not a partial transformation, but an overall thinking reconstruction.
The concept of smile curve is easy to understand, but the capacity building of trust companies is a systematic project, which starts with the change of ideas, ends with the reconstruction of organizations and ends with the construction of professional capabilities. As a bystander, we will find that this professional ability is not only projected on the investment management ability of the asset side, but also mapped on the asset allocation ability of the wealth center marketing, just like the supervision mentioned "improving the professional asset management ability" and "improving the comprehensive management service ability".
Write it at the end and send a message to the future.
Returning to this seemingly desperate reality, the possible truth is that the overall opportunity of the trust industry has gradually drifted away, but I am not particularly pessimistic about this. Sometimes, the downturn in the industry just gives practitioners more time to think. In the cold and silent environment, the insights gained by thinking hard may play a greater role when the wind is surging. This is what history tells us.
For the changes in the industry, I think this is an opportunity for many excellent companies or individuals to overtake in corners. When the overall β of the industry is gone, α is the decisive force of this market performance. Under the severe environment of economic transformation and stricter supervision, excellent companies and people will stand out at a faster speed, and the gap between action and inaction will become more prominent. This situation may be more worthy of our embrace.
As for trust companies, can they still make a lot of money? I think it depends on how much real value the trust company has created, and it is also true for individuals.
Don't waste a good crisis!
This article comes from people in the circle of trust.