On October 25th, 20 funds related to the CSI A500 Index will be issued simultaneously, marking a new heated phase in this competitive field. Just earlier, on October 18th, approvals were given for 25 CSI A500 Index Funds, including 10 feeder funds, 11 index funds, and 4 index enhancement funds. Remarkably, just one working day later, announcements for the issuance of 20 products swiftly followed, indicating one of the fastest paces of fund issuance.
A large array of companies is participating in this issuance spree, with 10 fund companies such as Guotai, Morgan Asset Management, Invesco Great Wall, Southern Asset, Yin Hua, and Harvest pioneering the launch of CSI A500 ETF Linked Funds. In addition, fund companies like Hua Xia, E Fund, Guang Fa, and Wan Jia are also releasing their own CSI A500 Index Funds. Only Huashang Fund Company is involved in the issuance of the index enhancement fund.
Although some fund companies have opted for initiated funds to avoid the fierce initial fundraising competition, custodians and e-commerce channels remain the core battlegrounds for this sales war. Large banks such as Industrial and Commercial Bank of China (ICBC) and China Merchants Bank have taken leading positions in this issuance, especially in the custody segment, where companies rely on robust banking networks for product promotion and sales.
Beyond the competition in sales channels, a fee war is also intensifying. The Huatai-Pinebridge CSI A500 Linked Fund has set the lowest fee rate in this issuance, with its A-share subscription rate at 0.5%, significantly lower than the 0.8% to 1% of other companies. At the same time, Huatai-Pinebridge has also adopted a "monthly dividend evaluation" strategy in its dividend assessment mechanism, with fund managers conducting monthly performance evaluations for potential income distribution when conditions are met.
The dividend mechanism of the CSI A500 Index Fund has emerged as a highlight in the market, extending the dividend "popularity" from ETFs to off-site products. Numerous fund companies such as Huatai-Pinebridge, Fullgoal, and Harvest have implemented quarterly or monthly dividend evaluation mechanisms, further catering to investors' demand for cash flow and asset allocation.
Since the listing of the CSI A500 ETF on October 15th, these products have seen rapid scale growth, attracting market attention. On the first day, Guotai CSI A500 ETF's transaction amount exceeded 3.1 billion yuan, setting a new high for ETF listings this year. In just five trading days, the total share of the 10 CSI A500 ETFs reached 35.394 billion, with the scale rising to 34.443 billion yuan, indicating strong market demand for these products.
Overall, the simultaneous issuance of 20 CSI A500 Index Funds is not only a speed challenge for the fund industry but also a comprehensive competition of fee rates, dividend mechanisms, and sales channels. Against the backdrop of the continued popularity of CSI A500 ETF products, fund companies are striving to capture the attention of institutional and individual investors, pushing the industry into a new phase of development.
