What is the difference between an asset management program and a financial product?

The biggest difference between asset management plan and financial management business is:

(1) Traditional bank financial products are generally given an expected rate of return, and through the management of the bank are able to achieve the expected rate of return, and gradually in the minds of depositors or investors, bank financial products are guaranteed capital guaranteed income, although the sales staff of the bank financial management of the risk of the warning book to the customer expressly states that "Financial management is not a deposit, investment must be cautious", but in the minds of customers bank financial products is essentially a special type of capital guaranteed return deposit.

And from the bank's own financial investment operation, due to the investment in bond assets can be discounted amortized yield to financial products and lock; non-standard assets, and not exchange or inter-bank market transactions, the net price does not fluctuate, only in accordance with the time of holding the rate of return, and therefore the net value of the unit of financial products 1 yuan is constant, with the continuation of the period of financial management, the net value of the unit are to rise. The net value per unit is going up.

When the financial products are due for payment, the principal and earnings can be realized by renewing the financial products or transferring them back to the proprietary account, and the earnings can actually be locked in.

In terms of management fees, in addition to deducting a certain amount of custodian fees and earnings that should be allocated to customers, the remaining part of the bank's traditional financial products are included in the management fee, which is also the place where the bank's financial products have been criticized the most because many scholars and experts believe that as a valet financial management, which is essentially a wealth management process for the customers, the bank should be charging a fixed fee for the management of the bank's financial products, and the rest of the earnings should be allocated to the customers.

(2) The newly launched bank asset management program, on the other hand, does not set the expected rate of return. Like the ICBC issued asset management plan is to set a rate of return threshold, beyond the threshold to charge a certain percentage of the management fee, if the threshold is not reached to set the management fee back to compensate for the customer's investment income mechanism. The management fee is fundamentally different from that of traditional bank financial products.

As for the specific operation, I personally believe that there is no essential difference, the investment of assets should not be a big change, in addition to the introduction of financial direct financing tools. In fact, the first batch of asset management plan pilot scale of a mere 20 billion, wealth management direct financing tools 12 billion (impression seems to be), on the 10 trillion scale of the bank wealth management market is in fact only a drop in the bucket, wealth management direct financing wages compared to the wealth management account asset investment in credit assets is also a very small amount of the brokerage and other channels of the compression of the effect of the business is very small. But the launch of the bank asset management program policy significance is greater, right, a very good policy orientation, the road is long, right.

Capital management does not set the expected maximum annualized rate of return. Previously, the bank's (self-selling) wealth management business income in addition to custodian fees and sales commissions, the bank will be in the name of investment management fees to obtain for the wealth management investment after maturity exceeds the maximum expected annualized rate of return of the excess. Asset management business also charges custodian fees and sales commissions, but management fees are not charged as an excess of investment income, but as a proportion of size and/or a proportion of income.

To put it bluntly, the excess return of wealth management goes all to the bank, and most of the excess return of asset management goes to the investor. Some people on the Internet mentioned that the management of financial management compared to the abolition of the "rigid cash", in fact, this can not be considered the difference between the two, because before the phenomenon of financial management can not reach the expected return also happened, but most consumers still can not understand the concept of financial management is not the concept of deposits, so this is the degree of financial popularity of the problem.