Four classic models of trust funds

Twentieth Century Trust researcher Zeng Chung

Intern Sheng Yan Ying / text

For the first time in the implementation details of Circular 99, regulators for the first time define a "non-benchmark financial pool": trust funds invest in capital markets, there is no open market price outside the interbank market, and liquidity is poor, leading to financial products and tools The sources of funds and the use of funds can not correspond one by one, the source of funds and the funds do not match the deadline for the business.

By definition, this rectification is aimed at cash management products that have an open redemption period and a maturity mismatch; more broadly, the capital pool business also includes types such as many-to-one and TOT. Different business logic and market demand, gave birth to a wealth of financial pool trust map.

Class currency fund type

Shanghai Trust's "Cash Feng Li" series is indeed the ancestor of the trust fund pool. It was born in 2005 and operates in exactly the same way as the Monetary Fund. Each working day can be bought and redeemed. The scope of investment includes negotiable deposits, bonds, Monetary Fund, etc. , With the general public offering of funds generally coincide, the difference is that before the 99th text can also be issued for enterprises within 6 months of short-term loans, as well as bank assets package, the trust beneficiary rights and other non-standard assets.

However, the liquidity of assets is relatively weak. In addition, it faces the problem of redemption at any time. It is the most difficult issue of market liquidity management Products, "money shortage" is also considered to be under tremendous pressure.

"Cash Feng Li," the first investment threshold is only 200,000 yuan, additional investment starting 50,000 yuan. In accordance with the "Trust Company Settlement Fund Trust Plan Management Measures", when investors have documented that they are qualified investors, the product investment threshold can be less than 1 million. Cash Feng Li and later appeared in China Railway TOT are using the provisions of low threshold.

Short-term financial management

In 2009, Ping An Trust launched the "Jijin Gold" product and opened up a short-term financial capital pool model. The period for raising funds was distributed in 1, 2, 3, 4, 6, 9 and 12 months with investment including non-standard assets A basket of financial instruments (mainly trust beneficiaries). As there is no need to prepare for redemption at any time, outflow of funds has a certain degree of predictability, "Poly Jin" can configure a larger proportion of non-standard assets to profit.

The model has been widely replicated to become the mainstream of the trust fund pool, and according to the deadline, the investment scope of differentiation more complete "spectrum."

For example, the two products "cash bonus" and "steady profit increase" launched by Fortune Trust, the former is perpetual and open on Tuesdays; the latter can be redeemed every six months. Zhongrong Trust is the main "long-end market", the convergence of gold, Longsheng series of shortest term are more than six months, higher yield; CITIC Trust's "letter of cash management financial investment pooling fund trust plan" closed period Also up to one year.

21st Century Business Herald reporter learned that most of the trust companies have only one pool of funds. A few such as Zhongrong and the operation of multiple pools, belonging to different teams, have strong independence and few cross-pool related party transactions.

Multi-phase connection type

Both the monetary funds and the short-term financial management are narrowly defined pool trusts, with many-to-many correspondence between funds and assets. The core of the operation is the maturity mismatch, which is very sensitive to the liquidity risk.

The CITIC Trust "Hongdao" as the representative of the multi-phase follow-up, although with a certain period of mismatch features, but the funds and assets have a clear one-to-one correspondence, according to the "implementation details" definition without rectification. One of its models is: a 6-month rolling issue of trust products, a total of four issues for a period of two years of business, real estate project financing. Continued use of funds or bridge funds, or raise funds in advance next period.

Insiders said that the initial controversy of such business, because the "trust company collective funds trust plan management approach" provides that the same company managed by the different trust plans to invest in the same project, but the issuer "with the same trust plan installment" to avoid This clause

TOT type

TOT (Trust's Trust) model is derived from "short-term financial management", raising funds for a fixed period of time for the benefit of investing in multiple trust plans. Chinatrust Trust is well known under the TOT model and has a series of "poly gold", "Jinfeng" and "Zhongyi". CNAC also developed "Tianfu" and "Tianxin" series.

As the assets of 100% of the "non-standard assets," TOT end of funds for more than two years, higher capital costs. Many practitioners think that TOT can not be regarded as a capital pool because there is usually no period mismatch or even a negative term mismatch (ie, the asset end-time is less than the capital end).

The main function of this model is "fund zero". General trust fund-raising large, limited to "300 million less than 50 investors," to set a higher threshold; to take TOT can reduce the investment threshold, such as the TTC threshold of China Railway Trust is generally 500,000 yuan. From the compliance point of view, investors under 1 million yuan must issue proof of property.