Core Points - Tianhong Yu'ebao, the largest money market fund in the market, announced a fee reduction for the first time since its establishment in 2013, lowering its custody fee from 0.08% to 0.07% [1][2] - Other money market funds, including Guoxin Guozheng Cash Increase and E Fund Margin, also announced fee reductions on the same day, indicating a broader trend in the industry [3] - The average management fee for money market funds is currently 0.24%, while the average custody fee is 0.06%, suggesting that Tianhong Yu'ebao's fees remain above industry averages [3][4] Fund Performance - As of September 23, 2023, the average 7-day annualized yield for over 900 money market funds is 1.24%, with some funds yielding below 0.5% [4] - Only one fund, Taiping Daily Gold A, exceeded a 7-day annualized yield of 2%, indicating overall poor performance in the sector [4] Industry Trends - The fee reduction trend in the public fund industry has been ongoing for the past two to three years, with over a thousand public funds announcing fee cuts in 2023 [7] - The China Securities Regulatory Commission (CSRC) has initiated a three-phase fee reform plan aimed at reducing costs for investors, with an estimated annual savings of approximately 510 billion yuan [8] - Fund companies are facing challenges due to declining management fees, prompting them to optimize business structures and diversify income sources to maintain profitability [9]

Core Viewpoint - The largest money market fund, Tianhong Yu'ebao, announced a fee reduction for the first time since its establishment in 2013, lowering its custody fee from 0.08% to 0.07% annually, reflecting a broader trend of fee reductions in the money market fund sector due to declining market interest rates and regulatory guidance [1][2][7]. Group 1: Fee Reductions - Tianhong Yu'ebao's custody fee is reduced from 0.08% to 0.07%, while its management fee remains at 0.30% and sales service fee at 0.25% [2][3]. - Other funds, such as Guoxin Guozheng Cash Increase and E Fund Margin, also announced fee reductions, with Guoxin reducing its management fee from 0.30% to 0.20% and custody fee from 0.10% to 0.07%, and E Fund reducing its management fee from 0.20% to 0.15% and custody fee from 0.08% to 0.05% [3]. - The average management fee for money market funds is currently 0.24%, and the average custody fee is 0.06%, indicating that Tianhong Yu'ebao's fees are still above the industry average [3]. Group 2: Market Context - The overall trend of fee reductions in the public fund industry has been driven by a combination of declining market interest rates and regulatory encouragement for public funds to lower fees for investors [3][7]. - As of September 23, 2023, the average 7-day annualized yield for over 900 money market funds is 1.24%, with some funds yielding below 0.5%, highlighting the need for fee reductions to enhance investor returns [4][5]. Group 3: Regulatory Environment - The China Securities Regulatory Commission (CSRC) has initiated a three-phase fee reform plan for public funds, with the first phase focusing on reducing management and custody fees for actively managed equity funds [7]. - The third phase of the reform aims to reduce sales-related fees, potentially saving investors approximately 30 billion yuan annually, with an overall expected reduction of 51 billion yuan across all phases [7][8]. Group 4: Industry Challenges - The fee reduction trend poses challenges for fund companies, as their management fees are decreasing while the total scale of public funds continues to grow [8]. - To adapt, fund companies are encouraged to optimize their business structures, diversify income sources, and enhance operational efficiency through digital transformation [8].

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 - 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].

（原标题：余额宝12年来首次降费，即日生效） 公开资料显示，天弘余额宝的前身天弘增利宝在2013年5月成立，2015年更名为天弘余额宝。而早在成 立之初，该基金的托管年费率即为0.08%；管理年费率和销售服务年费率也分别为0.3%、0.25%。这也 意味着，此次降费，是该基金成立12年以来首次降费。 9月23日，天弘基金公告表示，天弘余额宝货币市场基金托管费将由0.08%年费率调低至0.07%年费率， 自9月23日起生效。 ...

Core Insights - The public fund management industry is experiencing a fee reduction trend, yet over half of the fund managers achieved year-on-year growth in management fee income in the first half of 2025, indicating a robust performance amidst challenges [1][2][8] - Leading institutions like GF Fund and Fortune Fund have diversified their product offerings and optimized their product structures, resulting in significant scale highlights across various business types [1][3][4] - The success of certain flagship products, such as ETFs and actively managed funds, has contributed to substantial increases in management fees for these institutions [3][6][7] Group 1: Performance and Growth - In the first half of 2025, GF Fund's management fee income from various products, including ETFs and fixed income, increased by over 10 million yuan year-on-year [2][3] - GF Fund's ETFs, such as the GF Nasdaq 100 ETF and GF Hong Kong Innovation Drug ETF, saw significant scale increases, with the latter achieving a return rate close to 90% and a scale increase of over 8.4 billion yuan [3][4] - Fortune Fund's products also performed well, with its Hong Kong Stock Connect Internet ETF becoming the largest in the market, and its management fee income also increasing by over 10 million yuan [4][5] Group 2: Market Trends and Strategies - The trend of multi-point development is evident, with major public fund managers leveraging their diverse product structures to withstand the pressures of fee reductions [2][3] - The rise of passive investment strategies, particularly through ETFs, has allowed fund managers to enhance their competitive edge while maintaining fee income despite overall fee reductions [8][9] - Institutions are advised to enhance their research capabilities, optimize product structures, and improve customer service to strengthen their core competitiveness and achieve sustainable development [1][8][9] Group 3: Product Highlights - Notable products like the Huaan Gold ETF and Tianhong Yu'ebao have attracted significant investor interest, with the former seeing a holder increase of over 210,000 and a scale nearing 60 billion yuan [6][7] - The actively managed funds, such as Yongying Advanced Manufacturing and Penghua Carbon Neutrality, have also seen rapid growth, with both funds surpassing the 10 billion yuan mark in scale [7][8] - The diversification of product offerings and the ability to capitalize on market trends have been crucial for fund managers in maintaining and growing their market positions [5][6][7]

Core Insights - The public fund industry is experiencing a fee reduction trend, yet over half of the fund managers achieved year-on-year growth in management fee income in the first half of 2025, indicating resilience and adaptation to market pressures [1][2][7] - Leading institutions like GF Fund and Fortune Fund have diversified their product offerings and optimized their product structures, resulting in significant scale highlights across various business types [2][3][4] - The success of specific products, such as ETFs and actively managed funds, has been pivotal in driving growth, with notable increases in assets under management and management fees [3][5][6] Group 1: Fund Performance and Growth - More than half of public fund managers reported a year-on-year increase in management fee income, particularly GF Fund and Fortune Fund, which leveraged their diverse product structures to withstand fee reduction pressures [2][3] - GF Fund's ETFs, including the GF Nasdaq 100 ETF and GF Hong Kong Innovation Drug ETF, saw substantial growth, with the latter achieving a nearly 90% return rate and increasing its scale by over 84 billion [3][4] - Fortune Fund's products, such as the Fortune China Securities Hong Kong Internet ETF, also experienced significant growth, with management fee income increasing by over 10 million [4][5] Group 2: Market Trends and Strategies - The trend of multi-asset allocation is gaining traction, with gold ETFs like Huaan Gold ETF seeing a surge in popularity, contributing significantly to management fee income [5][6] - Active equity funds are also finding success, with products like Yongying Advanced Manufacturing and Penghua Carbon Neutrality achieving remarkable performance and attracting a large number of new investors [6][7] - Industry experts suggest that public fund managers need to enhance their research capabilities, optimize product structures, and improve customer service to maintain competitiveness in a changing market [7][8]

Core Viewpoint - The shift of deposits from traditional banks to money market funds (MMFs) may not yield the expected higher returns due to increasing fee rates that significantly reduce actual earnings [1][2][3]. Group 1: Market Trends - In May 2023, several major state-owned banks lowered deposit rates, with three-year fixed deposit rates dropping to the "1" range, prompting a "deposit migration" trend among savers towards MMFs, bond funds, and bank wealth management products [1]. - The total scale of MMFs increased from 13.32 trillion yuan at the end of March to 14.40 trillion yuan by the end of May 2023, reflecting a growth of over 1 trillion yuan in just two months [4][8]. Group 2: Fee Structures - Many MMFs have high fee rates, with nearly 30% of MMFs having management fees of 0.3% or higher, and almost 40% charging sales service fees of 0.25% or more, leading to comprehensive operational fee rates exceeding 0.6% for numerous funds [2][3]. - The average operational comprehensive fee rate for MMFs has surpassed 0.4%, while some funds, particularly those transitioning from brokerage margin products, maintain management fees above 0.7%, with the highest reaching 0.9% [3][4]. Group 3: Impact on Returns - For ordinary investors seeking low-risk and flexible liquidity, high-fee MMFs can significantly diminish net returns, with operational fees potentially consuming nearly 30% of total earnings in some cases [3][6]. - The largest MMF, Tianhong Yu'ebao, has an operational comprehensive fee rate of 0.63%, which, when factored into its net yield of 1.5867% for 2024, indicates that fees substantially impact investor returns [4][6]. Group 4: Challenges in Fee Reduction - The high fee structure of MMFs poses challenges for fee reductions, as they are a crucial revenue source for asset management companies and distribution channels [7]. - The need for fee reductions is acknowledged, especially as MMF fees currently exceed those of index funds, but actual reductions depend on negotiations among asset management firms, banks, and distribution platforms [7][8]. Group 5: Future Considerations - Asset management firms are encouraged to optimize operational costs through improved transaction systems and the use of technology to enhance efficiency, which could create opportunities for lowering management fees [8]. - The balance between operational sustainability and investor experience remains a long-term challenge for asset management institutions in the MMF sector [9].

Core Viewpoint - The recent trend of major banks in China, including Industrial and Commercial Bank of China, Agricultural Bank of China, and others, has been to phase out long-term large-denomination certificates of deposit (CDs) in response to the ongoing narrowing of net interest margins, indicating a strategic shift towards more sustainable liability structures [1][4]. Group 1: Market Changes - Many banks have removed five-year and even three-year large-denomination CDs from their offerings, with some banks now only providing products with a maximum term of two years [1][2]. - The average interest rate for three-year large-denomination CDs has dropped significantly from 2.197% to 1.55%, leading to a reduction in interest income for depositors [2][3]. Group 2: Interest Rate Trends - The interest rates for large-denomination CDs have entered a "1 era," with rates for two-year and one-year CDs generally around 1.20% and 1.55% for three-year CDs, reflecting a broader trend of declining rates [3][4]. - The current interest rates for two-year and shorter large-denomination CDs are concentrated between 0.9% and 1.4%, while five-year products have largely disappeared from the market [3]. Group 3: Strategic Responses - Banks are actively reducing the scale of long-term liabilities to avoid the risk of cost-revenue inversion, which is a direct response to the pressure on net interest margins [1][4]. - The net interest margin for Chinese commercial banks is projected to decline further, with a reported drop to 1.43% in the first quarter of 2025, highlighting the ongoing challenges faced by the banking sector [4].

Core Viewpoint - The trend of major banks in China, including Industrial and Commercial Bank of China, China Merchants Bank, and CITIC Bank, is to withdraw five-year large denomination certificates of deposit (CDs) and shorten the maximum term of available CDs to two years, in response to declining interest margins [1][3]. Group 1: Bank Actions - Major banks are actively reducing long-term liabilities by lowering the interest rates on long-term large denomination CDs or even suspending the issuance of three and five-year products to mitigate the risk of future cost-revenue inversion [1][4]. - As of recent searches, five-year large denomination CDs are no longer available on the apps of major state-owned banks, with the longest available term being three years at a rate of 1.55% [1]. - China Merchants Bank has also removed three and five-year large denomination CDs from sale, currently offering only products with terms of two years or less, with rates below 2.15% [3]. Group 2: Interest Rate Trends - The average interest rates for one-year, two-year, three-year, and five-year large denomination CDs are reported as 1.719%, 1.867%, 2.197%, and 2.038% respectively, indicating a general decline in rates [4]. - The interest rates for three-year large denomination CDs have decreased by approximately 80 basis points compared to the same period in 2024, with current rates concentrated between 1.55% and 1.8% [3]. - The latest seven-day annualized yield for Tianhong Yu'ebao has reached 1.18%, which is close to the one-year large denomination CD rate of 1.2%, highlighting the diminishing advantage of large denomination CDs in terms of interest rates [3]. Group 3: Industry Context - The banking sector is currently facing low net interest margins, with the net interest margin further declining to 1.43% in the first quarter of 2025, down 9 basis points from the end of 2024 [4]. - The pressure on net interest margins is exacerbated by the continuous decline in loan yields due to multiple reductions in the Loan Prime Rate (LPR), while the trend of increasing fixed-term deposits intensifies the burden of high-interest liabilities [4][5]. - The suspension of five-year large denomination CDs and the reduction of medium to long-term deposit products are necessary measures for banks to lower funding costs and stabilize net interest margins [5].