The difference between an asset management plan and a trust

The difference between an asset management plan and a trust (2015-03-20 09:21:37) reproduced

Category: Investment knowledge editor

Trust scheme: in accordance with the PRC Trust Law, trust refers to the trustee's property rights entrusted to the trustee based on the trust of the trustees, which shall be administered or disposed of by the trustee in his own name, in his own behalf, for the benefit of the beneficiary or for a particular purpose. In short, a trust is a system arrangement for the management of property for the benefit of others or for a specific purpose, that is to be entrusted to the people and to manage the money. Using the principle of trust, a person (principal) may transfer property rights to a person (i.e. a trustee) who trusts and is competent to administer the property without the ability or unwillingness to administer the property in person, and directs the trustee to use the Trust property and its proceeds for the benefit of himself or a third person (beneficiary).

Asset Management plan: Asset Management can be defined as the actual process by which assets collected by institutional investors are invested in capital markets. While conceptually these two aspects are often intertwined, in fact, from a legal point of view, asset managers can or may not be part of institutional investors. In fact, asset management can be an institution's own internal affairs, or it can be external. Thus, asset management refers to the act of entrusting a trustee with his or her own assets and providing financial services to the trustee. Financial institutions are agents of client assets in the financial market to invest in the acquisition of investment income for customers. In the domestic asset management is also called the valet financing.

A Capital Management product is a public fund management company or a securities company approved by a regulatory body to raise funds to a specific client or to accept a specific customer Treasury product Production Commission as an asset manager, and the custodian to act as the asset Trustee for the benefit of the asset holder, A standardized financial product that uses entrusted property for investment. At present, the Capital management business is used to issue fixed income trust products, which is the result of financial innovation advocated by the SFC, and the Future Fund management and brokerage funds to spin off trusts or launch trust products is a trend. The fund management is one of the products regulated by the SFC, and the regulatory products of the SFC require funds to be entrusted to a designated bank, and the fund management and brokerage firms cannot contact clients ' funds to ensure the safety of funds. Since 2012, the relevant departments for the asset Management market intensive issued a series of "New Deal", indicating that " pan-asset Management ERA " has come. And with the steady decline of trust yield, the new project of trust companies is declining, in this era of wealth management chaos, in addition to the continued popularity of trust products, many investors will look to the management of products, capital management products are gradually sought after. With the rapid growth of the trust capital, safe investment products became the mainstream of the market, so, at the end of 2012, China Securities will approve brokers, fund companies to carry out operating trust business, so the management plan appears in our eyes.

compared with other financial products, the project has the following advantages:
(1) Revenue: Management business is the second half of last year to open up business, is the need to vigorously expand the market time, in order to improve competitiveness, the capital Management company to the financing of the charge will be as low as possible, to give customers as far as possible, for example, the same type of product general management products will be higher than trust 0.5%/years.
(2) Safety aspects: Currently doing this kind of project is the asset management company dug trust manager and the company has many years of financial industry wind control personnel, the industry experience is deep, in general, high security products can give the financing costs with the market changes are increasingly low, but also in favor of the management company to do financing, At present, these 32 companies are doing the first wave of projects, the requirements of the election project will be more cautious, the qualification requirements of the project is relatively high, so for the provision of cost-effective fixed income project customers are also a choice of direction.

Same point:

1. Project issuers are financial institutions, all of which belong to the investment and financing platform, and can be cross-related to the capital market, money markets, industrial markets and other fields.

2. Before the project is issued, the relevant supervision units must be reported, the funds supervision, information disclosure and other aspects are strictly stipulated.

3. The distribution of the project is essentially the same channel, the same subscription method, project contracts, manuals and so on.

4. There is no need to withhold personal income tax on investment gains currently obtained through either of these methods.

Different points:

1. Trust companies shall be supervised by the CBRC and the asset management company shall be supervised by the SFC;

2. At present, there are 68 trust licenses issued by the CBRC, and asset management companies (all subsidiaries of the fund companies, licensed by the SFC) currently have more than 40;

3. The end of the Trust collection, the funds handed over to the custodian bank can be set up, after the completion of the Capital Management scheme, the SFC will be required to verify the capital, the capital verification will be completed; 4. The future share of the asset control plan can be transferred to other investors through the exchange; the transfer of trust shares must be handled by the trust

51,000-3 million individual investors, each trust plan only 50, the Capital management plan can have 200.

6. The Capital Management scheme is a newly emerging product of the market, so the channel fees charged by the brand are lower than that of trust, so the yield to investors is higher than that of trust products.

7. The Trust Company has existed since the 80 's, and after several rounds of capital increase, it is currently registered at about 1 billion. Asset management companies have received business licences from the end of 2012 to the beginning of 2013, and asset management companies registered about 20 million to 50 million of the capital.

Questions and answers on special Plan for Fund subsidiaries :

1. How to understand the "rigid honour" of the trust business of the Fund's subsidiaries?

First, the "rigid honour" is an attitude of the supervisory layer. The trust business of the Fund's subsidiaries, his "rigid honour" is expected to be strong, mainly from the following aspects of understanding.

Regulatory level : The trust industry's "rigid honour" is an attitude of the CBRC, which is not expressly stated. The SFC and the CBRC belong to one level, and the regulatory style of the SFC is more robust. The CBRC is the total amount of control, the SFC is pre-control, we through the Fund subsidiary of the number of reports can be seen, although the SFC has liberalized the Fund's subsidiaries of the trust business, but it is still a prudent regulatory attitude, through the collection of pre-filing, the full after the completion of the report, the SFC maintains its strict regulatory style.

Second, the industry development level : The Fund subsidiary has just begun to develop, its initial business guidelines for the development of the industry, so the industry's companies are very cautious in the operation of the business, which also explains why there are 34 fund subsidiaries established, but currently only 19 are doing business, and most are "One-on-one special capital management business".

Third, the fund subsidiary level : The Fund subsidiary backs strong shareholder background, his risk resolution ability is also very strong, does not compare with the trust difference (mainly includes the product own wind control system to dissolve, the big shareholder, the four asset management, the private equity organization, the insurance Fund and so on). Fund subsidiaries of the class Trust business team are almost all digging trust talent, his management style, the wind control system continues the trust industry rigorous style.

Iv. License Level : Class Trust licences are still valuable, which is why after the policy liberalisation, all fund subsidiaries swarmed to compete for the licence, and no fund subsidiary dares to first break the "rigid honour", thus being inspected by the regulators and even suspending or stopping the special business (i.e., the trust business).

v. Personnel, business level : The fund subsidiaries are through the excavation of trust industry talent, but also are the backbone of trust business, wind control backbone, senior leadership, are the elite of the trust industry, their business standards can be said to be higher than the trust industry average many many, they are high-quality trust projects to obtain , financing design, risk control more handy, so as to protect the "rigid honour."

2, the Fund subsidiary is the SFC regulation, the stock market fluctuation, the public fund's product lets the shareholder is injured, the fund subsidiary's type Trust product always lets the person feel the high risk, how to do?

Target Client : The subscription starting point for the public fund is 1000 yuan, and the majority of his client base is not our high net worth clients.

Product level : China's stock market, biased fund is largely speculative, which is the behavior of investors, speculators, he is willing to take high risk, to obtain high returns, and the type of trust business has an essential difference.

Comparison Trust : Securities Investment-type collective Funds Trust scheme is also non-capital preservation, this is not the issue of the Fund subsidiary, which is the subject of the underlying and investors risk appetite, and regulators, design and distribution agencies have no relationship. What we mean by "rigid payment" mainly refers to the collection type of creditor's right products.

Product level : The trust products of the Fund subsidiaries, whether from the strength of the financier, the structure of the transaction, the collateral guarantee, the risk control level are very perfect, not the type of speculation can not be controlled, and there is an essential difference.

3, the Fund subsidiary registered Capital Low, the risk of weak resolution ability, his fund subsidiary trust products of the risk-resolving capacity?

The ability of the trust to dissolve: the ability of the trust to dissolve mainly includes product risk control measures, large shareholder reimbursement, own funds, funds pool product transition, asset management companies, insurance funds, private placement and so on.

The capacity of the Fund's subsidiaries is also very rich, including product risk control measures, major shareholder reimbursement, asset management companies, insurance funds, private equity organizations and so on. Only less than the trust of free funds, and funds pool product transition two means.

Give you a detailed account of the difference between the two less:

own funds , so-called own funds, but also large shareholder capital injection only, because the Fund subsidiary of the provisions of the registered capital of 20 million, the majority of shareholders can spend less money to improve his efficiency in the use of funds, then the major shareholders why to increase the registered capital? When there are risk events, the fund subsidiaries of the large shareholder background strength are very strong, are some large-scale central enterprises, China's top 500, the world's top 500 enterprises, not less than the trust weak, the fund subsidiary of the major shareholder solvency is very good. And, why is the SFC's requirement that the registration threshold be 20 million? We feel that this is an attitude of the regulators, who believe that the trust business is still safe for a certain period of time, and that regulators encourage the institutions it manages to do the kind of trust business. Otherwise, he will not make such a provision in a prudent regulatory style that the SFC has previously controlled.

Funds Pool Product transition : Fund subsidiaries of the type of trust business, although currently not in the market to see funds pool products, we believe that the future must have, because the funds pool products are reflected in the Fund's independent management capacity of the performance of the company. With the fund subsidiaries of the business team, the wind control team are the elite in the trust industry, their asset management capabilities, they bring the operating system, the wind control system is very strong, they will also launch funds pool products, and rely on the past public funds to raise channels, can quickly build a huge pool of funds products. And now the type of trust products, the term is one year, two years, therefore, the Fund subsidiary of the funds pool products after rigorous planning and design (should still be in strict planning) timely launch, the Fund's subsidiaries of the active management capabilities, as well as its high-quality trust products are very good protection.

4. How do trust products in the Fund's subsidiaries protect themselves from the risks associated with their lack of personnel?

Personnel structure : first, the fund subsidiaries are through the excavation of trust industry talent, but also are the backbone of trust business, wind control backbone, senior leadership, are the elite of the trust industry, their business level can be said that the trust industry average many many, they are high-quality trust projects to obtain, Financing design, risk control more handy, so as to ensure the security of trust products.

Quantitative Analysis : Secondly, we do a quantitative analysis, in the market to do a better, with a certain reputation of the founder East Asia Trust to do an analogy. In 2012, founder East Asia Trust's asset management scale is petabyte level, we calculate according to 100 billion, his staff quantity is about 200 people (the above data can be found on the Internet). On average, each employee's asset is 100 billion/200=5 billion, which means that founder East Asia Trust has an average of 500 million assets per employee. And we look at the Fund subsidiary, as of the first half of 2013, the fund subsidiary of the size of the asset management is 60 billion, the actual business is 19 companies, the average size of each company's asset management is 60 billion/19=32 billion. Each Fund subsidiary employs about dozens of people, and we calculate the average of 20 people, so the average employee of a fund subsidiary manages 3.2 billion/20=1.6, far less than the average amount of assets managed by each employee in the trust industry.

personnel and Business Scale development : The foundation of the Fund subsidiary, is all elite team, with the development of business scale, it will establish the size of the business with the number of teams to adapt. A company's excellent business management, but also to ensure that the company's healthy and sustainable development of one of the important conditions, therefore, the Fund subsidiaries of the personnel relative to its asset management scale, business development speed and many, and can be said, than trust more protection, because they are elite, asset management ability is very strong, And on average, fewer assets are managed by employees per fund subsidiary than in the year before.

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The difference between an asset management plan and a trust