Li Shuchao, a reporter from China Fund News.
The competition in the fund industry is increasing.CandycrushjellysagaPersonnel change frequently. Moreover, the number of changes in executives tends to be higher than that of fund managers, as it has been so far this year.
Industry insiders interviewed said that frequent changes in fund managers' executives had an impact on both companies and investors. The industry needs to include the appointment of senior executives in the long-term development plan, establish an effective incentive mechanism, ensure the reserve of talents in key positions, and enhance the stability of the management team of fund companies.
Senior executives change 116
Number of fund managers leaving over the same period
As of May 25, 116 senior executives from 62 fund managers have changed so far this year, up from 115 fund managers over the same period, according to Wind.
In recent years, the trend that the number of senior executives changes exceeds the number of fund managers leaving is becoming more and more obvious. At present, there are 962 senior executives in the industry, 116 of which have changed so far this year, accounting for 12 per cent; the total number of fund managers is 3777, 115 people have left, accounting for 3 per cent.
With the rapid development of the fund industry, the team of fund managers is expanding rapidly, at the same time, the number of departures remains high. In recent years, the stability of fund managers has been improved by means of equity incentive, salary deferred, cultural construction and so on. According to Wind data, the turnover rate of public offering funds fell from more than 10% to 8% from 2021 to 2023.Candycrushjellysaga.59%.
Talking about the phenomenon of the increase in the change rate of senior executives of fund companies, Wang Tieniu, director of Ji'an Jinxin Fund Evaluation Center, analyzed that the changes of senior executives are mainly due to the change of shareholders or the adjustment of the board of directors of the fund company. If the senior executives of the fund company are inconsistent with the company's development strategy in terms of development direction, management model, governance system and so on, there will be adjustments. Secondly, if the performance indicators and scale indicators of fund companies do not meet the requirements of the board of directors, or if there are problems such as risk control compliance, it will also lead to changes in fund executives; third, for the sake of personal career development, some executives choose to go to other platforms such as private equity, bank planner, insurance asset management and so on.
"the market has fluctuated greatly in the past two years, and active equity funds have been greatly affected. More executives have left because of performance indicators and other reasons, which may be one of the main reasons why the number of senior executives leaving fund companies has exceeded that of fund managers this year." Wang Tieniu said.
A person from a fund sales organization mentioned the following reasons: first, the poor market performance in the past two years has greatly increased the difficulty for company managers to complete their performance, and under the trend of public offering and fee reduction, the company's profits have been compressed, resulting in greater assessment pressure on senior executives; second, potential policies such as salary restrictions have reduced the income expectations of public offering executives and reduced the cost-effectiveness of public offering executive positions.
Or have a negative impact on the development of the company.
A number of industry insiders said that, as a key figure of the company, senior executives change frequently, which may have a negative impact on the fund company's strategy, management, investment and research system construction, business stability and so on.
Chi Yunfei, a senior analyst at the Shanghai Securities Fund Evaluation and Research Center, also believes that an excessively high rate of change is likely to adversely affect fund companies. For example, new executives will have different strategic directions or business priorities, which may lead to frequent adjustments to the company's overall strategy, making it difficult to achieve the company's long-term goals.
Wang Tieniu said that the change of fund executives will first affect the stability of the investment research system and model of fund companies, which may lead to team instability and problems in team cooperation; moreover, the departure of senior executives may affect investor confidence, especially institutional investors, who are more concerned about the stability of the management and governance structure of fund companies.
Improve the stability of the senior management team
In the context of fee reduction and commission reduction of public offering funds, people in the industry interviewed suggested to strengthen the stability of the senior management team of fund companies from the perspective of improving internal governance, lengthening the assessment cycle and improving the incentive mechanism.
Wang Tieniu believes that fund companies should respond to the new "National Nine articles" and other policy requirements, and more effectively protect the rights and interests of investors, especially medium and small investors. At the same time, in the performance appraisal, compensation system, management mechanism and other aspects of continuous optimization, not only to cultivate long-term investment, value investment, but also to take into account the stability of fund executives and personal career development.
Chi Yunfei suggested that fund companies can strengthen and improve management systems and processes to ensure the smooth operation of the company when senior executives change; in addition, from the perspective of market supervision, fund companies can be guided to adhere to long-term development thinking and lengthen the assessment cycle to provide a realistic basis for the company's sound operation.
The above-mentioned fund sales agency also mentioned that the fund company needs a succession plan to ensure a talent reserve for key positions and reduce senior management changes caused by emergencies.
Wang Tieniu believes that public offering funds should not simply rely on a small number of core personnel to build an investment and research system, but to build a team, platform, integrated investment and research system to achieve balanced coverage in macro, industry, credit risk and other aspects.
(article source: China Fund Daily)
(original title: 116 senior executives change more than fund managers quit this year)
(responsible Editor: 43)
