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 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 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]

Group 1 - 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 [1] - The management fee remains unchanged at 0.3%, and the sales service fee is still 0.25%, resulting in a total operating fee of 0.62% for the fund [1] - This is the first fee reduction since the fund's inception over 10 years ago, with an estimated cost saving of nearly 80 million yuan for investors due to the 0.01% reduction in custody fees [1] Group 2 - Two other money market funds also announced fee reductions, with Guoxin Guozheng Cash Income reducing its management fee from 0.3% to 0.2% and its custody fee from 0.1% to 0.07%, totaling a fee reduction of 0.13% [2] - E Fund's Guarantee Fund lowered its management fee from 0.2% to 0.15% and its custody fee from 0.08% to 0.05% [2] - The trend of fee reductions has become a prevailing theme in the public fund industry, driven by the low interest rate environment and regulatory changes aimed at reducing sales service fees for money market funds [2]