Core Viewpoint - Recent fee reductions by multiple public money market funds indicate a response to declining yields and competitive pressures in the market [1][2][3][4] Group 1: Fee Reductions - Yinhua Duolibao Money Market Fund announced a reduction in the custodian fee from 0.10% to 0.05% effective October 18 [1] - Hongta Hongtu Renrenbao Money Market Fund reduced its management fee from 0.30% to 0.14% on October 13 [1] - Changjiang Money Manager Money Market Fund lowered its management fee to 0.25% on the same day [1] - Tianhong Cash Manager Money Market Fund cut its management fee from 0.33% to 0.15% on October 10 [1] Group 2: Market Trends - As of October 16, over 80 money market funds had a seven-day annualized yield below 1% [2] - Despite declining yields, the total scale of money market funds in China grew to approximately 14.81 trillion yuan by the end of August, up from 13.61 trillion yuan at the end of last year, marking an increase of 1.2 trillion yuan [2] - The growth in money market fund scale is attributed to their liquidity advantages compared to bank deposits, especially amid volatility in equity markets [2] Group 3: Monetary Policy Impact - The People's Bank of China has reiterated its commitment to a moderately loose monetary policy, which has led to a downward trend in yields of money market fund investment targets such as bank deposits and short-term government bonds [3] - The recent interest rate cuts by small and medium-sized banks have made money market funds more attractive due to their flexibility and lower risk profile [3] Group 4: Industry Response - Fund managers are adopting various strategies to cope with scale pressures, including fee reductions and enhancing asset quality [3] - Fee reductions may compress profit margins for fund companies in the short term but can enhance industry professionalism and management efficiency in the long run [4] - Lower fees directly reduce investment costs for investors, which is particularly beneficial in a low-yield environment [4]

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 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 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]