Group 1 - Multiple public money market funds have recently reduced fees, indicating a competitive response to declining interest rates [1] - Specific funds that have lowered their management fees include: - Yinhua Duolibao from 0.10% to 0.05% - Hongta Hongtu Renrenbao from 0.30% to 0.14% - Huobi Guanjia from 0.25% - Tianhong Cash Manager from 0.33% to 0.15% [1] - Despite the decline in yields, with over 80 money market funds having a seven-day annualized yield below 1% as of October 16, the total scale of money market funds in China has increased [1] Group 2 - As of the end of August, the total scale of money market funds in China reached approximately 14.81 trillion yuan, an increase of 1.2 trillion yuan from the end of last year [1] - The scale has maintained above 14 trillion yuan for four consecutive months since May [1]

Core Viewpoint - The reduction of custody fees by Tianhong Yuerbao, the largest money market fund in China, is expected to influence the overall fee structure of the money market fund industry, potentially leading to a broader trend of fee reductions among other funds [1][8]. Group 1: Fee Reduction Details - On September 23, Tianhong Fund announced a decrease in the custody fee for Tianhong Yuerbao from 0.08% to 0.07%, effective immediately [1][3]. - As of the second quarter of 2025, Tianhong Yuerbao's management scale reached 793.22 billion yuan, making it the largest money market fund in the public fund market [3]. - The average custody fee for money market funds was approximately 0.06% per year as of September 23, indicating that Tianhong Yuerbao's new fee is slightly above the industry average [3]. Group 2: Industry Impact - The fee reduction by Tianhong Yuerbao may prompt other large and medium-sized money market funds to follow suit, leading to a general decline in fee levels across the industry [1][9]. - The trend of fee reductions has already been observed this year, with 16 money market funds lowering management fees and 11 reducing custody fees [7]. - The competitive landscape in the money market fund sector is expected to intensify as firms strive to enhance management capabilities in response to fee reductions [9]. Group 3: Investor Implications - Lower management and custody fees will directly reduce investment costs for investors, thereby increasing the net returns from money market funds [10]. - The fee reductions are anticipated to enhance the attractiveness of money market funds as a cash management tool, especially in a declining bank deposit interest rate environment [10]. - The adjustments in fees are seen as a move to strengthen the inclusive financial attributes of money market funds, potentially attracting more low-risk preference capital [10].

Core Viewpoint - Tianhong Fund announced a reduction in the custody fee for its Tianhong Yu'ebao money market fund from 0.08% to 0.07%, effective September 23, marking the first fee reduction in the fund's 12-year history [2][5] Group 1: Fee Adjustments - Tianhong Yu'ebao's management fee remains at 0.3% and the service fee at 0.25%, resulting in a total fee rate of 0.62% after the adjustment [5] - Other money market funds, including E Fund and Guoxin Guozheng, have also announced fee reductions, indicating a trend across the industry to lower costs for investors [3][4] Group 2: Market Context - As of June 30, 2025, Tianhong Yu'ebao's total scale reached 793.2 billion, making it the largest public fund in the market [2] - The average 7-day annualized yield for money market funds has declined from approximately 1.35% at the beginning of the year to 1.23% as of September 22, with Tianhong Yu'ebao's yield at 1.02% [4] - The current monetary environment is expected to remain loose, with cash management products continuing to offer advantages despite lower yields compared to bank deposits [4]

Core Viewpoint - The article discusses the recent trend of fee reductions in money market funds, particularly focusing on Tianhong Yuerbao, which has lowered its custody fee for the first time since its inception, reflecting the pressure on fund yields and the competitive landscape in the market [3][4][5]. Fee Reduction in Money Market Funds - Tianhong Yuerbao has reduced its custody fee from 0.08% to 0.07%, which is expected to save investors nearly 80 million yuan annually based on its current scale of 793.219 billion yuan [4][5]. - The average 7-day annualized yield of money market funds has dropped to 1.24%, down 0.38 percentage points from the previous year, with Tianhong Yuerbao's yield hitting a record low of 1.02% [3][8]. - Over 50 money market funds have joined the fee reduction trend, with regulatory bodies also pushing for lower sales service fee caps [3][5]. Reasons for Fee Adjustments - The fee reductions are aimed at better meeting investors' needs and reducing their investment costs, as the overall yield of money market funds has declined [5][6]. - Regulatory guidance has played a significant role in prompting these fee adjustments, with new regulations suggesting a reduction in the maximum sales service fee for money market funds [5][6]. Market Trends and Impacts - There has been a significant decrease in the number of high-yield money market funds, with only 9 funds maintaining yields above 2%, compared to 69 last year [8]. - The decline in yields has led to some funds triggering contractual clauses for automatic fee reductions, impacting their operational strategies [9][10]. - As of June, over 40% of money market funds experienced a decrease in scale, indicating a shift in investor preferences and market dynamics [9][10]. Future Outlook - Analysts predict that the downward trend in money market fund yields may continue, potentially slowing growth in fund sizes as the yield advantage over deposits diminishes [10]. - Fund managers are advised to enhance their research capabilities and improve customer engagement to maintain competitiveness in a challenging market environment [10].

Core Viewpoint - The recent fee reduction by Tianhong Yuerbao, the largest money market fund in China, marks a response to the ongoing pressure on fund yields, with the average annualized yield for money market funds dropping to 1.24% as of September 23, down 0.38 percentage points from the previous year [1][5]. Fee Reduction Actions - Tianhong Yuerbao has announced a reduction in its custody fee from 0.08% to 0.07%, effective September 23, which is expected to save investors nearly 80 million yuan annually based on its current scale of 793.219 billion yuan [1][2]. - The comprehensive fee rate for Tianhong Yuerbao has decreased from 0.63% to 0.62%, indicating a limited overall reduction [2]. - Over 50 money market funds have joined the fee reduction trend, with regulatory bodies also pushing for lower sales service fee caps [1][3]. Market Context - The average 7-day annualized yield for money market funds has decreased significantly, with only 9 funds maintaining yields above 2%, compared to 69 funds from the previous year [5]. - The decline in yields has led to a larger number of funds experiencing reduced investor interest, with 154 out of 363 funds showing a decrease in scale this year [6]. Regulatory Influence - The recent fee reductions are partly driven by regulatory changes aimed at lowering costs for investors, with new proposals suggesting a cap on sales service fees for money market funds [3][4]. - The ongoing regulatory push is expected to continue influencing fee structures across the industry, with many fund companies indicating they will adjust fees in line with regulatory requirements [4]. Future Outlook - Analysts predict that the trend of declining yields may persist, potentially leading to slower growth in money market fund scales as the yield advantage over deposits diminishes [7]. - Fund managers are advised to enhance their investment research capabilities and improve customer engagement to maintain competitiveness in a challenging market environment [7].

Core Insights - The Tianhong Yu'ebao money market fund has reduced its custody fee from 0.08% to 0.07%, resulting in a comprehensive fee rate decrease from 0.63% to 0.62% [1][3] - Over 40 money market funds have lowered fees this year, indicating a trend towards fee reductions in response to declining yields and regulatory encouragement [1][6][8] Fee Reductions - Tianhong Yu'ebao's fee reduction is part of a broader trend, with other funds like E Fund and Xingsheng Asset Management also announcing fee cuts on the same day [1][6] - E Fund's management fee was reduced from 0.20% to 0.15%, and its custody fee from 0.08% to 0.05% [6] - The average management fee reduction across 15 money market funds this year is 0.1 percentage points, with some funds seeing significant cuts [6][7] Market Context - The decline in money market fund yields, with Tianhong Yu'ebao's seven-day annualized yield hitting a record low of 1.0200%, has prompted these fee reductions [5][6] - Regulatory changes, such as the proposed reduction of sales service fees to 0.15% per year, are also influencing the trend towards lower fees [3][7] Industry Impact - The overall trend of fee reductions is seen as a strategy to enhance competitiveness and provide benefits to investors amid a backdrop of low interest rates [1][3][8] - A total of 48 money market funds have implemented fee reductions this year, with various funds adjusting management, custody, and sales service fees [7][8]

Core Insights - Tianhong Yu'ebao has become the largest public fund in the market with a total scale of 793.2 billion yuan as of June 30, 2025, marking its first fee reduction since its establishment 12 years ago [2] - Multiple money market funds have announced fee reductions, indicating a trend in the industry to enhance competitiveness and benefit investors amid a backdrop of low annualized returns [4] Group 1: Tianhong Yu'ebao - As of June 30, 2025, Tianhong Yu'ebao's total scale reached 793.2 billion yuan, making it the largest public fund in the market [2] - The fund, originally established as Tianhong Zenglibao in May 2013, was renamed Tianhong Yu'ebao in 2015 [2] - The fund's management fee rate has been 0.3%, with a custody fee rate of 0.08%, and this marks the first fee reduction in its 12-year history [2] Group 2: Industry Fee Reductions - On September 23, E Fund announced a reduction in the management fee rate of its E Fund Margin Income Money Market Fund from 0.20% to 0.15% and the custody fee from 0.08% to 0.05% [4] - Guoxin Guozheng Cash Increment Money Market Fund reduced its management fee from 0.30% to 0.20% and custody fee from 0.10% to 0.07% [4] - Over 40 money market funds have reduced fees this year, reflecting a strategy to enhance competitiveness and respond to the high-quality development of public funds [4]

Core Viewpoint - Tianhong Fund has announced a reduction in the management fee for its Tianhong Yu'ebao money market fund, lowering the custody fee from 0.08% to 0.07%, which is a decrease of 0.01% [1] Summary by Relevant Sections Fee Adjustment - The comprehensive operating fee rate for Tianhong Yu'ebao is now 0.62%, with the management fee remaining at 0.3% and the sales service fee at 0.25% [1][2] - The fee reduction aims to better meet investor needs, especially as the fund's yield has decreased due to lower interest rates, with the seven-day annualized yield currently at 1.02% [1][3] Fund Performance and Market Position - Tianhong Yu'ebao's scale is currently at 793.22 billion, down from a peak of nearly 1.7 trillion, but it still remains one of the largest money market funds [3][4] - The fee reduction is expected to save investors approximately 80 million annually based on the current scale [3] Industry Context - The reduction in fees is part of a broader trend in the industry, with regulatory bodies encouraging lower management and custody fees for large-scale index and money market funds [3][5] - Other funds have also begun to lower their management fees, indicating a competitive environment where fee reductions are becoming common practice [5][6] Financial Impact on Tianhong Fund - The management fee from Tianhong Yu'ebao accounted for 42.48% of Tianhong Fund's total revenue in the first half of 2025, highlighting the fund's significance to the company's financial health [4] - Despite the fee reduction, the impact on Tianhong Fund's overall revenue is expected to be minimal since only the custody fee was adjusted [3][4]

Core Points - A new wave of fee reductions has emerged in the money market fund sector, with Tianhong Yu'ebao reducing its custody fee from 0.08% to 0.07%, resulting in a comprehensive fee rate decrease from 0.63% to 0.62% [1][5][3] - Over 40 money market funds have lowered fees this year, driven by a backdrop of moderately loose monetary policy and declining seven-day annualized yields [1][5][12] - The seven-day annualized yield of Tianhong Yu'ebao has reached a historical low of 1.0200% as of September 22, 2023, marking a significant decline since its inception [9][6] Fee Reductions - Tianhong Yu'ebao's fee reduction is part of a broader trend, with other funds like E Fund and Huabao also announcing fee cuts on the same day [11][1] - The average management fee reduction across 15 money market funds has been 0.1 percentage points, with some funds reducing fees by as much as 0.65 percentage points [11][12] - A total of 48 money market funds have implemented fee reductions this year, with 12 funds lowering custody fees and 27 funds reducing sales service fees [12][11] Market Context - The decline in fees is attributed to the overall decrease in market interest rates, which has negatively impacted the yields of money market funds [5][16] - Regulatory guidance is pushing for lower management and custody fees in large-scale index and money market funds, indicating a trend towards fee reductions in the industry [5][12] - The current average seven-day annualized yield for the entire market of money market funds is 1.12%, with 78 funds yielding below 1% [14][12] Future Yield Outlook - Short-term yields for money market funds are expected to remain low, with limited potential for significant upward or downward movement [15][16] - The central bank is likely to maintain a moderately loose monetary policy, which will keep liquidity conditions favorable for the time being [16][15] - Future reductions in yields may require adjustments in key policy rates by the central bank, which currently stands at 1.4% for the seven-day reverse repurchase rate [16][15]

Core Points - Public funds are experiencing a wave of fee reductions, with a significant move from Tianhong Yu'ebao money market fund, which lowered its custody fee from 0.08% to 0.07%, resulting in a comprehensive fee rate decrease from 0.63% to 0.62% [1][5][3] - Over 40 money market funds have reduced fees this year, driven by a backdrop of moderately loose monetary policy and declining seven-day annualized yields [1][5][11] Fee Reduction Details - Tianhong Yu'ebao's fee reduction is part of a broader trend, with other funds like E Fund and Xingsheng Asset Management also announcing fee cuts on the same day [1][10] - The average management fee reduction across 15 money market funds this year is 0.1 percentage points, with some funds like Guolian Cash Adding benefiting from a significant cut of 0.65 percentage points [10][11] Yield Trends - The seven-day annualized yield of Tianhong Yu'ebao has reached a historical low of 1.0200% as of September 22, 2023, marking a continuous decline over the past year [8][6] - The overall average seven-day annualized yield for the market is 1.12%, with 78 funds reporting yields below 1% [13][11] Regulatory Influence - Regulatory guidance is pushing for fee reductions in large-scale index and money market funds, with potential adjustments to sales service fees as well [5][11] - The China Securities Regulatory Commission has proposed a draft regulation that may lower the sales service fee rate for money market funds to 0.15% per year [5][11] Future Outlook - The short-term outlook for money market fund yields is expected to remain low, with limited potential for significant increases or decreases [14] - Current monetary policy is likely to remain moderately loose, reducing the likelihood of tightening liquidity in the near future [14]