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 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]

Core Insights - Tianhong Yu'ebao Money Market Fund has announced a reduction in its custody fee from 0.08% to 0.07%, resulting in a decrease in the overall fee rate from 0.63% to 0.62% [1][4] - This fee reduction is part of a broader trend in the industry, with over 40 money market funds lowering fees this year, driven by a combination of declining yields and regulatory encouragement [1][4][9] Fee Reduction Details - The adjustment in Tianhong Yu'ebao's custody fee is effective from September 23, following discussions with the custodian, CITIC Bank [2][4] - Other funds, such as E Fund and Guoxin Guozheng, have also announced fee reductions, with some management fees dropping significantly [8][9] Market Context - The seven-day annualized yield of Tianhong Yu'ebao has reached a historical low of 1.0200% as of September 22, 2023, reflecting a downward trend in yields across the market [7][10] - The average seven-day annualized yield for all money market funds is currently at 1.12%, with a notable number of funds yielding below 1% [10] Regulatory Influence - Regulatory bodies are pushing for fee reductions in large-scale index and money market funds, which is expected to lead to further adjustments in management and custody fees [4][11] - The China Securities Regulatory Commission has proposed lowering the sales service fee for money market funds, indicating a trend towards reduced costs for investors [4][11] Future Yield Outlook - The current monetary policy is expected to remain accommodative, limiting the potential for significant increases in money market fund yields in the near term [11] - Future yield movements will likely depend on central bank actions regarding key policy rates, with limited room for downward adjustments in short-term asset yields [11]

Group 1 - Multiple money market funds have announced fee reductions to lower investment costs for investors [3] - E Fund has reduced the management fee from 0.20% to 0.15% and the custody fee from 0.08% to 0.05% for its money market fund starting September 26 [3] - Guoxin Guozheng has adjusted its management fee from 0.30% to 0.20% and custody fee from 0.10% to 0.07% effective September 23 [3] - Huabao Fund is offering a promotional service fee reduction from 0.25% to 0.20% for its cash management fund from September 23 to December 23 [3] Group 2 - The average 7-day annualized yield of 358 money market funds is 1.12%, with 22% of funds yielding below 1% [4] - Funds with yields below 1% are primarily those with assets under 10 billion, but there are also 21 funds exceeding 10 billion in this category [4] - The demand for cash management is shifting towards low-risk and flexible options due to declining deposit rates and increased market volatility [4] - Money market funds remain a key choice for cash management due to their low risk, high liquidity, and convenience [4]

Group 1 - The core viewpoint of the article highlights the recent fee reductions by various fund companies in response to declining yields in cash management tools, aiming to lower investment costs for investors [3] Group 2 - E Fund announced a reduction in the management fee rate of its money market fund from 0.20% to 0.15% and the custody fee from 0.08% to 0.05%, effective September 26 [3] - Guoxin Guozheng Cash Increase Money Market Fund adjusted its management fee from 0.30% to 0.20% and custody fee from 0.10% to 0.07%, effective September 23 [3] - Huabao Fund is offering a promotional sales service fee reduction for its cash-enhanced money market fund A class, lowering the fee from 0.25% to 0.20% from September 23 to December 23 [3] - The article notes that due to the ongoing loose monetary policy, cash asset yields in China are generally declining, with money market fund yields approaching or even falling below 1%, becoming a market norm [3] - Multiple fund companies indicated that the fee reductions are intended to better meet investors' financial needs and reduce their investment costs [3]