Recently, at the themed forum "2023 Jointly Building a New Platform for SCO International Capital and Creating a New Paradigm for Wealth Management" hosted by Guolian Securities, Chen Yibin, General Manager of Shanghai Lujinsuo Fund Sales Co., Ltd., gave a wonderful speech titled "Reflections on the Transformation of Consignment Platforms by Fund Investment Advisors".
The full name of Lu Fund is Lu Jinsuo Fund, which is an independent third-party sales agency wholly-owned by Ping An Group. The company mainly provides online fund sales services to retail customers. Chen Yibin stated that the value proposition of Land Fund is to create a market image of "fund buyers who obtain positive returns for customers", and to deepen cooperation with fund investment advisory pilot institutions, as well as the future development of this business, which is particularly important for the Land Fund platform.
Chen Yibin stated in his speech that in recent years, there have been 18 fund investment advisory pilot institutions cooperated with Land Fund. On the one hand, during the pilot period, different business models have been tried, and on the other hand, the proportion of investment advisory scale in the public offering of non stock is also increasing year by year. Currently, it has a scale of approximately 3 billion yuan, accounting for nearly 15%, which is relatively high in third-party industries. In the form of business cooperation with investment advisors, Land Fund also tries to differentiate according to the different resources and ability endowments of each investment advisor, in order to find the most suitable model for key development during the pilot period of this business.
Differences in service between fund investment advisory institutions and fund sales agencies
Chen Yibin stated in his speech that Guolian Securities is the first pilot agency for securities firms to cooperate with the company. Considering that nearly half of Lujin's customer base comes from offline channels, customers are more accustomed to participating in offline salons. Therefore, the company provides offline services to customers through regular events, and several other securities firms also participate.
In addition to the salon model, for investment advisors with distinctive accompanying content, the company will more often use the service content as "value information" to create APPPUSH, push touch reach customers, and track customer clicks and views. There are also institutions that provide remote wealth managers, and the company will provide investment advisors with a WeChat account for onshore funds, facilitating investment advisors to answer customers' post investment questions at all times within the WeChat domain. In addition, targeting strategies that focus on target returns, combined with market thermometers and strategy selection indicators provided by investment advisors, we provide customers with platform based timing services. As well as investment advisors who excel in financial planning and asset allocation capabilities, more targeted investment and education services are provided based on customer position diagnosis. The services that investment advisors can provide to customers from pre investment to post investment are basically upgraded versions of traditional sales agencies. Investment advisory institutions can provide clear participation opinions to contracted clients; The investment gap is even greater because investment advisors can not only provide advice but also directly manage wealth on behalf of clients. In the post investment stage, investment advisors can provide independent production suggestions and solutions tailored to their differentiated needs for the market, products, and customers. In the future, in addition to traffic platforms, non licensed sales agencies and licensed sales agencies will be two heavyweight competitors. So applying for an investment advisory license by a sales agency is definitely a trend in the industry. But this trend does not conflict with the company's continued strengthening of cooperation with investment advisory agencies, as the company hopes to continue introducing more distinctive and excellent investment advisory strategies.
Customer investment advisory positions have a better experience than traditional single base positions
Chen Yibin introduced that Lu Fund has been conducting investment advisory platform business for three years, with 50000 clients participating in investment advisory. Among these 50000 clients, 36000 have participated in at least two strategies, totaling 4.5 billion yuan. Although the number of 50000 clients is not large, in terms of scale, each of them is close to 100000 yuan, so they are all super traditional fund sales business. At the same time, there will be more significant differences in the holding time of these participating clients. Generally, the average holding time of clients on land fund platforms is around 7 months. However, although the investment advisory strategy has been launched for a relatively short time, the average holding time of clients is approaching 1 year, and this trend is still continuing to rise. The company believes that only by prolonging the holding time of customers can we fundamentally solve the problem of funds making money and customers not making money in the market.
Regarding the reinvestment ratio, Chen Yibin stated that, excluding the situation of placing orders for fixed investments, the reinvestment ratio of fund advisors is significantly higher than that of individual funds. This reinvestment refers to customers continuing to increase their holdings of the original target based on their existing holdings. There are about 30% of customers in the investment advisory strategy, while the reinvestment of individual funds has been very low in recent years. The company implemented a feature in June last year that allows customers to directly transfer their funds into investment advisory accounts. Approximately 30000 of these customers participated in the investment advisory strategy through fund transfer. It has been more than a year now, and the company compares the performance of 30000 customers who transferred out funds through custody transfer with the current investment advisory strategy, The investment advisory strategy is significantly better than the original position. So, from a comprehensive perspective, the customer holding experience for investment advisory strategies will be better than the traditional experience of customer participation in individual products.
Enhancing Customers' Perception of Investment Advisory Services and Exploring the 'Full Commission Account'
Chen Yibin stated that currently, the vast majority of clients still understand fund advisors with a product oriented mindset, only making choices based on the returns and pullbacks of the strategy, which leads to misunderstandings; Secondly, investment advisory clients do not have a deep understanding and feeling of 'Gu', and the proportion of participating in any form of services such as live streaming communication, accompanying content viewing, and one-on-one service based investment advisory communication in the post investment stage is relatively low; Finally, platform customers have a strong willingness to invest independently. If investment advisory strategies are displayed in the form of shelves, fewer customers will choose to participate in investment advisory services independently.
Based on the discovered data and phenomena, the company has optimized the fund investment advisory business. Firstly, this business still requires a large amount of manual service investment, and it is necessary to strengthen the customer's significantly differentiated service perception of pre investment, mid investment, and post investment through manual (service-oriented investment advisors); The second is to provide personalized services through accounts, change customers' perception of fund investment advisors' productization, continuously create value for customers, and win their trust.
Chen Yibin introduced that Lu Fund is currently working on creating a customer committee account based on investment advisory services. This account is independent of the customer's personal holding account, but product shares can be transferred to each other. The assets that are transferred or recharged into the entire committee account will be adjusted by licensed investment advisors who have successfully matched through KYC in the early stage according to the customer's configuration needs. During this period, advisory investment advisors will provide full guidance and customers will customize their future position services to ensure that customers have a comprehensive understanding of the fund investment advisory business during the service stage. In the post investment stage, the company, as a platform, will also cooperate with investment advisors to conduct research on customer service every six months, continuously adjust service strategies, and improve customer satisfaction. The company hopes to extend the investment cycle of customers, stabilize their investment returns, and ultimately improve their investment experience through such full committee account services.
At the end of the speech, Chen Yibin stated that the Chinese wealth management market has come to a true crossroads and hopes that the company can seize industry opportunities with various professional institutions to jointly promote the creation of a new path for wealth management services based on a buyer's perspective.