Over 1.12 Trillion Yuan! Profitable Across the Board
With the disclosure of the third-quarter reports of funds, the overall profit situation of public funds has also emerged.
The data shows that in the third quarter of this year, the overall profit of public funds exceeded 1.12 trillion yuan. With the launch of the 9·24 market, the net value of public funds quickly "recovered," with equity funds and mixed funds contributing more than 80% of the profits, bond funds and money market funds maintaining stable profits, and FOF, REITs, and alternative investment funds also delivering relatively satisfactory results. Among the first-level classifications of public funds, all types of products achieved full-line profits.
Industry insiders said that since its establishment 26 years ago, the public fund industry has undertaken multiple missions in serving residents' wealth management, promoting the healthy development of the market, and creating long-term value for investors. Relying on its professional capabilities, the public fund has strongly promoted the high-quality development of the industry, helping China's economy to transform and achieve high-quality development, and there is still a broad development prospect in the future.
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Public funds earned more than 1.12 trillion yuan for fund holders in the third quarter
The data shows that in the third quarter of 2024, the total profit of all fund products under public fund managers was 1.12 trillion yuan, which is a leap in profit for the public fund industry in the third quarter compared to the profit of about 20 billion yuan in the first and second quarters of 2024.
Looking at the structure of fund profits, according to the first-level classification of funds, the products that contributed the vast majority of profits in the third quarter were equity funds and mixed funds, contributing profits of 633.9 billion yuan and 306.1 billion yuan, respectively, quickly reversing the "loss-making" situation. QDII fund products followed with a profit of 67.5 billion yuan, including the synchronous recovery of the Hong Kong stock market.
Industry insiders analyzed that since the launch of the 9·24 market, the A-share market has ended the shock and started a rapid upward trend. At the same time, the bond market has also shown a certain stability. Under this background, the net value of public funds quickly "recovered," and public funds quickly made profits, once again showing a good "profit effect."
The data shows that since the 9·24 market, the CSI 300 index has once risen by nearly 30%, and the ChiNext index has reached a maximum increase of 68%. The single-day transaction volume of the two cities has reached nearly 3.5 trillion, which is also the first time in history that the transaction volume has broken through the 3 trillion yuan mark. The rapid recovery of the stock market has made a significant contribution to the profits of public funds.
While equity funds are profitable, bond funds and money market funds have maintained stable profit contributions, with profits of 49.2 billion yuan and 53.5 billion yuan in the third quarter, respectively. Of course, compared to the first and second quarters, profits have decreased. In the context of the low-interest-rate era and the emergence of the "policy bottom," the market has begun to test the money-making ability of bond funds.
In addition, FOF, REITs, and alternative investment funds have also delivered relatively satisfactory results, especially FOF funds, which have turned losses into profits, with a single-quarter profit of 7 billion yuan.
Passive index funds contribute nearly half of the profits
Looking further at the second-level classification of funds, passive index funds have become the benchmark for profits in the third quarter, with profits reaching 547.9 billion yuan, accounting for 49% of all public fund profits.
At the same time, active equity funds are also "catching up," with mixed stock funds ranking second in the second-level classification of funds with profits of 217.8 billion yuan.
With the rise in fund net value, the management scale of public funds has once again set a new historical high, breaking through 32 trillion yuan.
The latest public fund market data released by the China Securities Investment Fund Industry Association shows that as of the end of September 2024, there are 163 public fund management institutions in China, including 148 fund management companies and 15 asset management institutions with public qualification. The net value of public fund assets managed by the above institutions is 32.07 trillion yuan, an increase of 1.16 trillion yuan from the end of August, an increase of 3.77%.
A large public fund company said that as a professional asset management institution, the public fund industry has fully exerted its professional advantages in the 26 years since its establishment, and is committed to creating long-term sustainable value for investors, playing an important role in serving residents' wealth management and promoting the healthy development of the market.
At the same time, as a typical representative of inclusive finance, public funds have always adhered to the principle of putting investors' interests first, guided by enhancing investors' sense of gain and experience, and bearing the high expectations of the majority of investors for the preservation and appreciation of wealth.
Looking forward, as China's economy transforms towards high-quality development, the public fund industry is expected to usher in a broader development prospect.
The above fund company said that the public fund industry will rely on its professional capabilities in asset management, continue to promote product innovation, optimize investment strategies, and provide investors with higher quality and more efficient services. At the same time, as the market continues to change and investor needs become more diversified, the public fund industry will also actively explore new business areas and development models to better meet investor needs and promote the high-quality development of the industry.