Subsequently, Yu’ebao’s annualized yield rebounded slightly on the 7th. As of August 31, the 7-day annualized yield rose to 1.4110%. Today, Yu’e Bao’s yield has fallen again to 1.392%, while the one-year fixed deposit rate of my country’s four major commercial banks is 1.75%.
Yu’e Bao’s seven-day annualized rate of return once reached about 6% during the peak period, with low risk, good liquidity, and high rate of return, attracting a lot of funds. Many middle-class families transferred their bank deposits to Yu’e Bao for wealth management. This money fund, which was born in 2013, has over 700 million users by the end of 2021. In 2013 and 2014, Yu’e Bao’s 7th annualized rate of return has remained at 6%. However, since 2015, Yu’e Bao’s rate of return has continued to decline, falling to 3.5%; it continued to fall from 2016 to 2019. to around 2.5%, then fell below 2% for the first time, until today’s 1.392%.
Increase in bank deposits, decrease in bond investment
Yu’e Bao’s annualized rate of return is also related to its investment strategy. A reporter from Beijing Youth Daily combed the balance sheet of Tianhong Fund’s Yu’ebao semi-annual report and found that in the Yu’ebao asset project, bank deposits were 533.565 billion yuan as of June 30, compared with 488.265 billion yuan on December 31 last year, and bank deposits increased. 45.3 billion yuan. Bond investment decreased from 92.78 billion yuan on December 31 last year to 88.67 billion yuan on June 30 this year, a decrease of nearly 4.1 billion yuan.
Yu’ebao explained its investment strategy in its semi-annual report: In the first half of 2022, the Russian-Ukrainian conflict broke out overseas, high commodity prices drove inflation at a high level, the Federal Reserve started to raise interest rates, the epidemic in some parts of the country repeated, and economic growth faced shrinking demand and supply. The three pressures of shock and weakening of expectations, macro policies are balanced between epidemic prevention and control and stabilizing economic growth, the real estate industry has experienced marginal relief after experiencing a low point, and other major economic indicators fell sharply in April and May, and June accompanied the epidemic situation. Marginal improvement, the economy began to show a weak recovery trend. The overall trend of the bond market is related to the repeated domestic epidemics, epidemic prevention and control policies, and macro-policy hedging efforts. Long-term interest rates fluctuate within a narrow range around macro fundamentals, while short-term interest rates benefit from loose monetary policy and fiscal spending in the second quarter. , there is a clear downward trend. During the reporting period, Tianhong Yu’ebao made the optimal allocation of assets within the scope of risk control indicators and guaranteed liquidity requirements, and re-allocated assets mainly in inter-bank deposits, inter-bank certificates of deposit, reverse repurchase and credit bond allocation. . During the reporting period, the Fund created returns matching the risks for the holders.
There are still advantages in spare money management
A public fund manager in Beijing analyzed that the continued decline in the yield of monetary funds is directly related to my country’s current looser monetary policy. It is expected that the liquidity of the money market will remain loose for a long time, and the market interest rate will gradually move closer to the policy interest rate, but the overall operation will remain low. The yield of currency funds will not increase significantly in the short term, and investors may be disappointed if they go with the goal of high yield.
Although Yu’ebao has low returns, as a currency fund, stability is its advantage. According to data from Tianxiang Investment Consulting, as of August 31, 2022, a total of 149 public fund managers have disclosed the 2022 interim report. According to statistics, the total loss of public funds in this period is 635.632 billion yuan, which is the first loss in the same period of data in the past three years. . From the perspective of fund types, in the 2022 interim report, only the total profit of money market funds will exceed 100 billion yuan, the total loss of mixed funds will exceed 500 billion yuan, and the average loss of each product of stock funds will be nearly 100 million yuan. That is to say, in addition to currency funds that can provide stable returns, there is a high probability that buying other funds will lose money.
A Yu’e Bao investor told the Beiqing Daily reporter that Yu’e Bao still has advantages in managing spare money and will not give up in the short term. He said that although the income from investing in Yu’e Bao is already very low, it is more convenient to use and can be directly used for consumption and can be quickly redeemed on the same day. Earnings are low but stable and don’t have to worry about plummeting like a stock fund.
Text/Reporter Zhu Kaiyun