1. General overview of the asset management industry
In the past ten years, my country's asset management industry has grown by leaps and bounds. The scale of capital-guaranteed plus non-guaranteed asset management has increased from 59 trillion yuan in 2014 to 122 trillion yuan at the end of 2018, with a compound growth rate of 20%. Collectively referred to as the era of "big asset management". At present, almost all financial sub-sectors provide asset management services, including bank wealth management sub/asset management departments, securities companies, foundations, trusts, insurance, and futures. In addition, many non-financial institutions also provide asset management services.
With so many asset management sub-sectors that are both competitive and cooperative, it is really not easy for financial people to master them all. However, within the scope of asset management, in fact, there is a joint relationship between various fields, and there is not much knowledge to learn to find out the context. It's just that in the past, if you look at it separately, you will think it is too many and messy; when you connect it together, the essential content is much less. The asset management industry is not mysterious. Entrusted by others and financial management on behalf of others, it is formed from the mutual complementarity of several basic terms, but changes in regulation drive ever-changing applications.
2. The China Banking and Insurance Regulatory Commission system in the subdivision of asset management
Asset management structure and key points of interbank asset management: In fact, the general framework is built around the new asset management regulations and the central bank’s new asset management regulation notices and their detailed rules. Although there are many documents issued by the regulatory authorities, important decisions There are only a few changes in the direction of asset management in the future, such as bank financial management methods, structured deposit methods, cash management financial management methods, trust rules under the China Banking and Insurance Regulatory System, large-scale asset management and private equity asset management under the China Securities Regulatory System. , and the central bank's identification rules for standardized creditor's rights.
The emergence of wealth management subsidiaries will inevitably cause waves in the asset management field, but several major policy pillars after the management measures of wealth management subsidiaries, such as related party transactions and consignment sales methods, are still unclear, which also reflects the regulatory attitude towards the establishment of rules while piloting wealth management subsidiaries. . For the peers, they are faced with the pressure of meeting the risk exposure standards of anonymous customers; after the Baoshang incident, the central bank’s series of measures to deal with the risks of the peers all reflect the determination to break the rigid exchange;
Bank wealth management business and wealth management subsidiaries: As the largest segment of the asset management industry, bank wealth management has a total scale of nearly 30 trillion yuan. Since the commercial bank itself is already large enough, many of the work of the asset management department needs to be closely connected with the internal departments of the bank. Therefore, the division of labor and characteristics of each department in the bank are introduced one by one, as well as the various risks faced by the commercial bank itself.
Going back to bank wealth management itself, there were wealth management products around 2004 as early as 2004. After experiencing the turning point of tightening interbank business in 2014, and the rapid expansion of various "magic" weapons in 2016, finally in 2018 Ushering in new asset management regulations, new wealth management regulations, and patches to the central bank’s new asset management regulations, bank wealth management has ushered in a directional regulatory framework. At the same time, these game rules require banks to constantly adapt and adjust. On the other hand, the emergence of wealth management subsidiaries also poses new challenges to the future reform of consignment sales channels. As a rookie in asset management, Cai Zizi has not yet introduced many management methods. Although the regulators continue to hope that he can move towards standardized investment, it is still difficult in the short term.
Insurance asset management: For the first time, the new asset management regulations officially include insurance asset management in the asset management industry, requiring insurance asset management institutions to compete fairly with other financial institutions on the same starting point; in terms of the reform direction of insurance asset management, overall It is also heading in the direction of competing on the same stage. But after all, insurance funds are debt funds with low risk appetite. The stricter supervision of other non-standard products is beneficial to insurance asset management products. Insurance asset management products appear to be relatively small in the context of large asset management, about 2.6 trillion.
How to explore the characteristics of insurance asset management, the supervision has given a very clear answer. Because insurance funds can be invested in 4 other financial products of the same industry, including bank wealth management, banking credit asset-backed securities, collective trusts, special asset management for securities companies, and 3 insurance financial products, including infrastructure plans, real estate plans, and project assets support plan.
3. Objectives of asset management companies
The goal of asset management companies Asset management companies, as the name implies, are to manage clients’ assets, preserve and increase their value, which leads to its core of acquiring sufficient clients and earning profits that satisfy clients. The original asset management company = public offering fund (requires a license) + private equity fund (equity + secondary market) + trust company (doing non-standard business) + channel (being restricted), the business of asset management companies is mainly divided into three types: One is called special asset management. This kind of business is actually partial to investment banking business, and securities companies mainly focus on asset securitization;
Asset securitization is a form of financing that issues tradable securities backed by specific asset portfolios or specific cash flows. More generally speaking, it is to isolate an asset that can independently generate cash flow from the original subject, carry out structural and cash flow restructuring, and then divide it into individual securities and sell them to investors. Features: 1. Risk isolation: The above-mentioned isolated assets for securitization must be real and completely transferred and completely isolated from the original subject. If the original subject goes bankrupt or has any legal disputes, it cannot be involved in this block of assets. 2. Cash flow reorganization: The frequency of cash flow generated by the isolated asset may be irregular, but the time for repayment of interest and principal for securities sold to investors is fixed, so there is a time difference in cash flow. For example, the time for asset cash flow to flow back is January, April, August, and September each year, and securities investors are required to pay interest at the end of each quarter. In this way, the cash flow of assets must be measured, and then designed and arranged. 3. Structural arrangement: Securities sold to investors are usually graded. The simplest is two grades: priority and inferior grade. Some, but the security is lower. If there is a problem with the cash flow of the asset, the priority interest must be paid first, and the investors of the lower level may not even get the principal. This design is also to meet the needs of investors with different risk and return preferences.
Based on the separate supervision of the domestic financial system, my country's asset securitization business is divided into three major markets, namely credit asset securitization (credit ABS) and asset-backed notes (ABN) under the supervision of the Central Bank and the China Banking Regulatory Commission; corporate asset securitization under the supervision of the China Securities Regulatory Commission Securitization (corporate ABS); asset-backed schemes under the supervision of China Insurance Regulatory Commission. The second is called collective asset management, which provides many-to-one services for multiple customers, and is realized through a product called "collective asset management plan" (more than 200 people are equivalent to public funds, less than 200 People are equivalent to private equity, and more than 200 people have been spun off to public equity funds. Asset management is mainly the function of small private equity). Its goal is to invest for customers. The third is called directional asset management, which is for specific purposes, mostly channel business. Targeted asset management is mainly engaged in channel business, that is, a certain institution such as a bank, due to regulatory factors, in order to release assets from the balance sheet, because usually only capital-guaranteed wealth management products are recorded in the balance sheet for the bank's financial balance sheet processing , and non-principal-guaranteed wealth management products that do not formally assume credit risk are recorded in the off-balance sheet wealth management account for customers. Its essence is that companies that need financing package their financing needs into a product through securities companies or trusts or other qualified institutions, and raise funds through product sales. Since the bank issues investment instructions to the securities company to invest, the securities company is passively managed and does not issue instructions, so it only plays the role of a channel.
4. The structure and business content of the asset management company
Like a normal company, an asset management company also has a marketing planning department responsible for marketing and promotion; a comprehensive management department responsible for financial and administrative matters; an operation management department responsible for specific transactions and execution; responsible for risk control, compliance, etc. The management department and the information technology department that maintains the normal operation of the system. Of course, these departments are the middle and back office departments of asset management companies. I will briefly mention them here, and I will mainly talk about the front office business department in detail.
(a) Marketing business departments: Market Development Department, Financial Interbank Department, and Institutional Finance Department Market Development Department: Mainly responsible for connecting with high-net-worth individual customers, that is, as the main source of private equity customers in the business sector, there will be investment consultants, marketing Consultants specialize in marketing to high-net-worth clients. Generally, the employees of the business department of a securities firm will develop low-end retail investors. However, due to limited personnel, asset management companies will focus on developing high-quality clients, because the profits brought by these clients are relatively low. higher.
Financial interbank department: mainly responsible for docking with financial institutions, including banks, insurance companies, securities companies, etc. At present, it is mainly based on banking institutions. When the channel business is prevalent, the daily duty of the employees of the financial interbank department is to contact various bank employees and search for opportunities for cooperation. For example, the stock pledge business, the bank thinks that the risk of this equity pledge business is controllable, and wants to do this business, but its own funds cannot be directly invested in the financing target, so it needs to be packaged into related management products at this time, and the bank can purchase it. The name of the asset management product is indirectly invested in the financing target.
Institutional Finance Department: Mainly responsible for connecting with non-financial institutions, starting from consulting or financing services, researching the development of specific industries, such as general health, biomedicine, intelligent manufacturing, etc., providing development suggestions for entity enterprises, and also connecting with private equity institutions, Venture capital, industrial funds, etc., serve as a capital bridge between them. Of course, there are very good projects that often get a share of it.
(b) Investment business departments: Innovative Investment Banking Department, Institutional Finance Department, Fixed Income Department, Equity Investment Department, Quantitative Investment Department Innovative Investment Banking Department: mainly responsible for primary market equity investment. Equity investment in the primary market will be divided into angel investment, venture capital (A, B, C rounds), PE investment, etc. according to the stage of investment. At present, the Innovation Investment Banking Department is mainly engaged in Pre-IPO projects, that is, those companies that are about to enter the IPO stage. These companies have often gone through the stage of barbaric growth, and are only waiting to prepare for listing. Due to the difference in valuation between the primary market and the secondary market, as long as the company can be listed, the profits that the innovative investment banking department can obtain are considerable.
Fixed Income Department: mainly responsible for bond investment in the secondary market. The fixed income department of asset management is different from the fixed income department of banks and traditional securities firms. The fixed income department of traditional securities firms is mainly responsible for the four major one-stop services of bonds-contracting, sales, trading, and investment. The asset management company, because of its purpose of "financial management on behalf of others", currently focuses on research and investment in bonds, and is a real party A.
Equity Investment Department: mainly responsible for stock investment in the secondary market. Basically, each department arranges investment managers according to the scale of management. This department generally does not recruit many people, and it is useless if there are too many people. Generally, only 5-10 people are needed to manage assets of 2 billion to 5 billion. Most of them are research posts and trading posts (of course, trading can also be placed in the operation management department). In addition to the daily research on stocks, what I know now is that their main concern is how to get tickets through fixed increase, firstly, the large amount is obtained, and secondly, the cost of buying in the secondary market is generally higher.
Quantitative Investment Department: Mainly responsible for secondary market investment, but the main difference from the Equity Investment Department is that the Equity Investment Department invests through fundamental research and analysis of listed companies, while the Quantitative Investment Department mainly invests through financial engineering, computers and other mathematical and physical tools . Examples include utilizing market-neutral strategies (pairs trading and statistical arbitrage). Friends who are interested can go to study financial engineering, which will open up a new world. In addition, some quantitative investment departments also deal in futures and options.
(c) Investment banking business departments: Asset Securitization Department and Structured Finance Department
Asset Securitization Department: What is asset securitization? Refer to the above explanation. Simply put, it is to provide various parts of a pig to people who want to eat meat from different places. Some meat is cheap but unpalatable, and some meat is expensive , but very delicious.
The ability of a securities company to do ABS has little to do with the size of the company. In the case of corporate ABS projects, in most cases, the securities company is the leader. From contracting to underwriting to underwriting, it is basically the job of the securities company. Although the professionalism is not as deep as financial engineering, because it does not use complex technologies such as financial engineering, it is not simple. In fact, the complexity of ABS is far beyond the imagination of ordinary people, because there are too many details that need to be considered. . The main test is whether you are familiar with the relevant rules, how well you communicate with various organizations, and how to bring everyone together.
Add
