Since its initial sale on October 20, the first internet big data index fund based on equity in China “GF CSI Baidu BAIFA Strategy 100 Index Fund”, for which Industrial Bank (IB) serves as the custodian bank and a lead agency, has started a “blowout” pomp in the fund sale market which has been drowsy for a long time. According to the statistics of IB, the sales volume in the channel of the bank hit RMB 704 million (accounting for 39% of the total sales volume registered in all channels) only in the two days from October 20 to 21. In addition, the funds raised in all channels have outrun the preset scale (RMB 1.8 billion) for the first stage of the initial raising period. Thus, the fund started the “Last-Day Proportionate Allotment” plan, which could be hardly seen in recent years, namely, on the October 21 the subscription shares of subscribers in all channels should be allotted according to the last-day allotment principle.
As learnt by the reporter, GF BAIFA 100 Index Fund is to be issued in two stages. The first stage extends from October 20 to 27, 2014. Besides the direct sale outlets of GF Fund, IB serves as the lead agency, and the upper raising limit is RMB 1.8 billion within the preset one-week issue time. In the second stage, the fund will be sold exclusively at official website of Baidu Finance from October 28, with an upper raising limit of RMB 1.2 billion. Nonetheless, on the first day of initial sale, October 20, in the first stage, only the sales volume registered by the channel of IB hit RMB 517 million, which accounted for 38% of all agency channels. On October 21, the sales volume via the channel of the bank reached RMB 187 million (the allotment amount based on the last-day allotment proportion), accounting for 43% of all agency channels.
“In fact, after the sale finished in the morning of the second day, the funds raised in all channels outran the upper raising limit. So the fund must be allotted according to the last-day allotment principle.” said the relevant person-in-charge of IB Retail Banking Headquarters.
We can see from the sales performance of open-end funds in recent years that few witnessed such an exceptionally hot sale situation like that of GF BAIFA 100 Index Fund. Why the fund is so popular in the market, the above person-in-charge of IB analyzed, mainly lies in that the power of return of “Baifa 100 Index” has far outperformed conventional indexes since this year. From the beginning of this year to September 30, it has witnessed an increase of 51.25%. Against the backdrop of long downturn in the stock market and emerging fall in the real estate market, GF CSI Baidu BAIFA Strategy 100 Index Fund, which takes the “Baifa 100 Index” constituent stocks and optional constituent stocks as the main investment targets, are consequently very popular among investors.
In recent years, depending on its advantages in integrated business operation, IB has kept improving its capacity in asset management, channel building and customer services, boasting increasingly outstanding wealth management level. In particular, in the area of selection of wealth management products including fund, it can adhere to the principle of prudence, bring into play its professional judgment and risk control capability, and balance risks and returns in a proper manner, thus offering preferred products which enable investors to “buy products free of worries and gain returns happily”.
It is learnt that, since 2014, IB has served as a lead agency for the initial issue of 5 funds. Of them, IB Fixed-term Open-end Bond Fund, China Post Core Competitiveness Flexible Allocation Composite Fund, IB Monetary Fund, and Harfor Monetary Fund witnessed an accumulative sales volume of RMB 8.76 billion. Now, all of them are operating in good performance. In particular, the net value of China Post Core Competitiveness Flexible Allocation Composite Fund hit 1.2520 by October 22, witnessing an increase of 25.2% after its establishment.