Recently, a money market fund under a public offering institution in Beijing will terminate its fund contract through a shareholders' meeting, making it the first money based product to face liquidation this year. Overall, although the yield of the commodity base has continued to decline in recent years, its overall scale still shows an expansion trend. Industry insiders believe that with the implementation of new asset management regulations, the competitive advantage of commodity based assets over bank wealth management has improved. Moreover, in a volatile market environment, the commodity base known for its low volatility and stability has still gained the favor of some low-risk investors. Some products are facing liquidation. Recently, a public fund company in Beijing announced that in order to better meet the needs of investors and protect the interests of fund share holders, the company has decided to hold a general meeting of fund share holders for a certain currency market fund under its umbrella, proposing to terminate the fund contract of the fund. According to Wind data, as of October 20th, the fund was the first commodity based product in the public offering market this year to hold a shareholders' meeting to consider terminating the fund contract. From past data, it can be seen that the fund was established in December 2013 with a fundraising scale of approximately 500 million yuan; At the end of 2016, the scale exceeded 2 billion yuan; Since then, the scale of the fund has remained low, consistently below 50 million yuan since 2021, with a scale of only over 8 million yuan at the end of the second quarter of this year. Especially since the beginning of this year, both in terms of scale and performance returns, the fund has been in a lower position among similar product rankings. As of October 20th, the fund's annual return was only 0.65%, which is relatively low compared to the average annual return of 1.45% on the stock market. Based on the analysis of the income statement, Liu Yiqian, the business manager of the Shanghai Securities Fund Evaluation and Research Center, stated that the main reason for the poor performance of the fund's returns is the high expense ratio. During the operation of the fund, there are some relatively rigid expenses, such as audit fees and account maintenance fees. However, since 2021, the scale of the fund has been under 50 million yuan for a long time, resulting in the proportion of expenses to income being much higher than similar levels, seriously eroding the fund's returns. Another public fundraiser stated that due to the long-term small scale of the fund and the high overall operating costs of the product, it may cause harm to the interests of the holders, so they chose to liquidate it. The average yield has continued to decline in recent years, and the overall yield on a commodity basis is in a downward range. According to Wind data, from 2018 to 2022, the average annual return rate of the cargo base was 3.51%, 2.46%, 2.00%, 2.13%, and 1.72%, respectively. Liu Zhenjie, Quantitative Director of the Owl Fund Research Institute, analyzed that in the environment of declining global potential economic growth rate and long-term loose domestic monetary environment, the space for returns has been gradually compressed to this day. The commodity base mainly invests in fixed income securities, money market instruments, etc. with short remaining maturities, and its yield level is mainly determined by the level of short-term interest rates. In recent years, China has implemented a prudent monetary policy, with loose funding and low short-term interest rates. Liu Yiqian stated that the overall performance of risky assets is poor, and funds prefer low-risk assets, which further lowers short-term returns. In addition, a third-party organization