Ant Group’s money market fund BalancePay released its Q1 earnings report on 22nd, with net asset value of RMB 972.4 billion, down 18.3% from RMB 1.19 trillion in the same period last year.
Reuters reported that Ant Group was interviewed again by mainland financial regulators this month, mainly to ask Ant to align with the rectification plan for in-depth and effective rectification. The rectification plan requires Ant to correct unfair competition in its payment business, disconnect Alipay from other financial products such as “chanting” and “borrowing”, and take the initiative to reduce the balance of BalancePay.
The decline in balance funds’ net assets may also be related to the rise in the stock market, as the mainland’s blue-chip stock index hit a record high in mid-February, weakening the appeal of money market funds and prompting more retail investors to shift funds from balance funds to the stock market.
CSI reported that the size of the BalancePay fund fell to RMB 972.4 billion in 1Q from RMB 1 trillion 190.8 billion at the end of 2020, and was the first time since 1Q 2017 that the size fell below a trillion yuan.
In this regard, experts say that scale changes are a normal phenomenon for fund products, and for a fund as large as BalanceBuy, scale changes of hundreds of billions of dollars are really normal and have happened many times in the past. The decline in the size of the balance may be related to the adjustment of asset allocation behavior of investors, and will not have an impact on the operation of the fund.
In terms of yield, as of 1Q 2021, BalancePay has outperformed its performance benchmark every quarter since its launch in June 2013, generating a cumulative return of RMB 218 billion for holders, which is equivalent to RMB 315.9 per user based on 690 million users at the end of 2020.
BalancePay is a value-added balance service and demand fund management service product of Ant Financial Services, and Tianhong Fund is the fund manager of BalancePay. BalancePay money fund, features easy operation, low threshold, zero commission and can be withdrawn as you like.
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