Closed-end funds belong to trust funds, which means that the fund scale has been determined before issuance, fixed within the specified period after issuance and traded in the securities market.
The main differences between open-end funds and closed-end funds are as follows:
(1) The variability of fund size is different. Closed-end funds have a clear duration (not less than 5 years in China), during which the issued fund shares cannot be redeemed. Although this kind of fund can be raised under special circumstances, it must meet strict legal conditions. So in general, the size of the fund is fixed. The fund shares issued by open-end funds are redeemable, and investors can also buy fund shares at will during the duration of the fund, which leads to the constant change of the total amount of funds in the fund every day. In other words, it is always in an "open" state. This is the fundamental difference between closed-end funds and open-end funds.
(2) There are different ways to buy and sell fund shares. When a closed-end fund is initiated, investors can subscribe to the fund management company or sales organization; When closed-end funds are listed and traded, investors can entrust brokers to buy and sell at market prices on the stock exchange. When investors invest in open-end funds, they can purchase or redeem them from fund management companies or sales organizations at any time.
(3) The buying and selling prices of fund shares are formed in different ways. Because closed-end funds are listed on the exchange, their buying and selling prices are greatly influenced by the relationship between market supply and demand. When the market supply is less than the demand, the buying and selling price of the fund unit may be higher than the net asset value of each fund unit, and then the fund assets owned by investors will increase; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund unit. The transaction price of open-end funds is calculated based on the net asset value of the fund unit, which can directly reflect the level of the net asset value of the fund unit. In terms of fund transaction costs, investors have to pay a certain percentage of securities transaction tax and handling fee in addition to the price when buying and selling closed-end funds, just like buying and selling listed stocks; The related expenses (such as initial subscription fee, redemption fee, etc.) that investors of open-end funds need to pay are included in the fund price. Generally speaking, the transaction cost of closed-end funds is higher than that of open-end funds.
(4) The investment strategies of funds are different. Since closed-end funds cannot be redeemed at any time, all the funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term business performance. On the other hand, open-end funds must keep some cash so that investors can redeem it at any time, but not all of it is used for long-term investment. Generally invest in assets with strong liquidity.
There is no special difference in return between the two.
The main difference between open-end funds and closed-end funds is that the latter has a long closed period and a fixed number of issues. The holder can't redeem it during the closed period and can only buy and sell it in the secondary market. Moreover, open-end funds can be redeemed, and listed open-end funds can also be bought and sold.
Therefore, open-end funds have to "always be ready" for the possible redemption of their holders, and their investment style is relatively stable; Closed-end funds do not have to worry about redemption during their existence.
Everything has its good side and bad side. It is precisely because closed-end funds don't have to worry about redemption, similar to the holder lending money to the fund company for stock trading, and agreeing to pay back the money after 5 years, 10 years and 20 years. I'm not sure if I'm interested In these years, the holder can't ask the fund company to pay back the money in advance. Therefore, fund companies have great autonomy in this money and can even play the trick of "interest transfer".
Of course, there are also well-run fund companies and fund managers, whose closed-end funds are not necessarily worse than open-end funds.
To sum up, the landlord should decide what kind of fund to buy according to his investment preference, risk tolerance, understanding and trust of fund companies and fund managers, and long-term judgment of the market.
Introduction of discount rate of closed-end funds
The connotation of the discount rate is like this. Referring to the net value of the fund, the price of the fund is a kind of depreciation relative to the net value of the fund, so the denominator should be the net value, not the price.
The formula of actual discount and premium is the same:
Premium (discount) rate = (transaction price-fund unit net value)/fund unit net value * 100%
If it is negative, it is the discount rate; If it is positive, it is the premium rate.
Because closed-end funds are listed on the exchange, their buying and selling prices are greatly influenced by the relationship between market supply and demand. When the market supply is less than the demand, the buying and selling price of fund shares may be higher than the net asset value of each fund share, and then the fund assets owned by investors will increase, that is, a premium will be generated; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund unit, which means discount. At present, the discount rate of closed-end funds is still high, mostly between 20% and 40%, among which the discount rate of small and medium-sized funds with short term is low. It is certainly better to buy the same fund when the discount rate is high; However, the choice of funds should not only look at the discount rate, but also choose some small and medium-sized funds with moderate discount rate and short term.
According to the experience at home and abroad, it is normal for closed-end funds to discount their trading prices. Discount will affect the investment value of closed-end funds. In addition to investment objectives and management level, discount rate is an important factor in evaluating closed-end funds, and investors with high discount rate have certain investment opportunities.
Because closed-end funds should be paid or liquidated according to their net value after the operation expires, the higher the discount rate, the greater the potential investment value.
A brief history of development
In the early 1990s, the establishment of Zhuxin Fund marked the beginning of China Investment Fund (the embryonic form of closed-end fund). Later, Tianji, Lantian, Zibo and other investment funds were listed on the Shenzhen and Shanghai stock exchanges as the first batch of funds, marking the birth of China's national investment fund market. Judging from the development of closed-end funds for more than ten years, closed-end funds have gone through several stages: starting, standardizing and developing.
1. Start time
199 1 In July, Zhuxin Fund (formerly known as Zhuxin 1 Trust) was established, which is the earliest fund in China. Later, Wuhan Fund (Phase I) and Nanshan Fund were established one after another.
(For the above development process, please refer to the article "Closed-end Fund-History and Present Situation")
1In August 1992, the "Jin Xin Fund" founded by Jinhua Trust and Investment Company was listed in the securities department of Zhejiang Jinhua Trust and Investment Company. At the same time, Shenzhen Investment Fund Management Company was established, which is the first professional fund management company established in China mainland investment fund industry.
165438+ 10 In October, Shenzhen Special Economic Zone Branch of the People's Bank of China approved Shenzhen Investment Fund Management Company to issue space-based funds with a scale of 58 1 100 million yuan. Tianji Fund was the largest fund in China at that time. Since then, many funds have been issued, including Zibo Fund.
1In June 1992, Shenzhen Special Economic Zone Branch of the People's Bank of China promulgated the Interim Provisions on the Administration of Investment Trust Funds in Shenzhen, which was the only local regulation on the supervision of investment funds at that time.
1In March 1993, Shenzhen Special Economic Zone Branch of the People's Bank of China approved Tianji Investment Fund and Blue Sky Fund to be listed on Shenzhen Stock Exchange as the first batch of funds.
On August 20th of the same year, the People's Bank of China approved the listing of Zibo Fund on the Shanghai Stock Exchange, marking the birth of China's national investment fund market. Since then, several funds have been listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange, and traded with the fund markets of other securities trading centers on the Internet, and the national fund trading market has initially taken shape.
According to statistics, from 1993 10 to May, Guangdong, Shenzhen and Sichuan branches of the People's Bank of China approved the establishment of 12 funds, with a scale of1800 million yuan, and the domestic fund industry entered a stage of rapid expansion.
From 1992 to 1993, many investment funds were established. By the end of 1993, * * had established nearly 50 funds of various types, mainly distributed in Guangdong, Heilongjiang, Shenzhen, Shenyang, Dalian, Hainan, Jiangsu and other provinces and cities. Among them, Shenzhen's fund issuance scale is the largest, reaching 65.438+37 billion yuan. However, the rapid expansion has brought great difficulties to the unified supervision of funds.
1993On May 9, 2009/kloc-0, the People's Bank of China made a regulation to stop the irregular issuance of investment funds, in which the issuance and listing of investment funds, the establishment of investment fund management companies and the establishment of investment funds and investment fund management companies by China financial institutions abroad must be approved by the head office of the People's Bank of China, and no department shall exceed its authority.
Since then, with the exception of Jinlong Fund, Baoding Fund and Jianye Fund approved by the head office of the People's Bank of China in September 1993, the establishment of various funds has not been approved for a long time (until the first half of 1998), and the issuance of domestic funds has come to a standstill.
1996 18 The Shenzhen Stock Exchange Fund Index was compiled on March 8, with the benchmark index of 1000 points, and all 10 funds directly traded or networked in the Shenzhen Stock Exchange at that time were included in the calculation.
According to statistics, as of the beginning of 1998, China * * * has set up 78 investment funds of various types, raising a total of RMB 7.6 billion, and 27 funds are listed (networked) in Shanghai and Shenzhen stock markets. During this period, there were few professional fund management companies (less than 10), and the funds were generally small in scale and operated irregularly, which was also called the "old fund" period.
2. During the period of standardization and development, the article comes from the meaning of what is a closed-end fund and what is a closed-end fund.
1997165438+10/4 The Interim Measures for the Administration of Securities Investment Funds was officially promulgated. At the same time, China Securities Regulatory Commission replaced the People's Bank of China as the competent authority of fund management. Since then, China's securities investment fund industry has entered a new stage of standardized development.
1Since March 1998, a number of large funds, such as Kaiyuan Securities Investment Fund and Jintai Securities Investment Fund, have been listed one after another, which are much larger than those established in 1992 and 1993, and most of them are 65,438 billion yuan to 3 billion yuan.
1999 is a year of great development in the fund industry, with 22 funds increasing rapidly and the asset scale jumping to 48.42 billion yuan. At the same time, these funds have made great progress in standardization. According to the Interim Measures for the Administration of Securities Investment Funds, the investment scope of the funds is limited to government bonds and stocks publicly issued and listed in China according to law. 80% of the portfolios of these funds are invested in stocks and 20% in government bonds. There are also relatively strict and detailed regulations on the initiation, collection and later operation of funds. For example, holding shares of a listed company shall not exceed 65,438+00% of the fund's net asset value; The total of the securities issued by a company held by the Fund and other funds managed by the fund manager shall not exceed10% of the securities; Mutual investment between funds is prohibited; It is forbidden to mortgage, guarantee, borrow money or lend money with fund assets; Prohibit funds from engaging in securities credit transactions and so on.
1In March, 1999, the CSRC issued a notice to clean up and standardize the original investment funds, and the funds traded in various securities exchange centers were gradually delisted, and the funds listed on the exchanges were also cleaned up and standardized. After a series of fund merger and asset reorganization, all the bad assets of the old fund were replaced by stocks, government bonds or cash assets of listed companies with strong liquidity, and on this basis, the fund was expanded and renewed, and finally the historical transformation between the old and new funds was realized. For example, the current "Jingbo Securities Investment Fund" is formed by the merger of Xiang Jianxin Fund and Xiang Rural Credit Fund; Tongzhi Securities Investment Fund was reorganized from Gulf Fund, Wuhan Fund, Ganzhong Fund, Zhongsheng Fund, Xin Kai Fund and Changjiang Fund.
As of September 2002, there are 18 fund management companies in China, among which 1 has been approved for establishment and is waiting for opening, and another 14 (excluding Sino-foreign joint venture fund management companies) are in the application preparation stage; In China, 54 closed-end funds have been raised and listed, raising a total of 80.7 billion yuan.
Since the second half of 2002, the situation of closed-end funds has gone from bad to worse. Since September 2002, no closed-end fund has been issued in the investment fund market. The phenomenon of "stagnation" encountered by closed-end funds this time is different from that before 1998. At that time, the "stagnation" was due to the need to rectify norms (actively), but today's "stagnation" occurred in the era of great reform and development of the fund industry (passively), and the reasons are worth pondering.
From several closed-end funds issued in the second half of 2002, we have already felt the crisis of closed-end fund issuance. Although these funds are nominally successful, in fact, the market has refused to pay the bill. For example, the balance of the fund Kerry is 439 million shares (Yinfeng also has 65.438+300 million shares) underwritten by the lead underwriter. Thanks to the rebound of the market, the fund was successfully issued, but due to the sudden withdrawal of Xinjiang Securities, one of the original sponsors, it was forced to postpone its listing for 40 days. The collection of small-cap restructuring funds is also quite bad. For example, the abandonment rates of Fund, Fund Tianhua, Fund Anjiu and Fund Wealth Management Xin are as high as 98.47%, 90.4%, 94.44% and 95.27% respectively. Small-cap funds that once enjoyed unlimited scenery have been abandoned by the market.