Economy

The intensive red envelope fund has already distributed nearly 150 billion yuan in dividends this year

2024-10-18   

Public funds are experiencing a resurgence of intensive dividends. On October 16th and 17th alone, over 80 funds announced dividends. Statistics show that since the beginning of this year, the dividend amount of funds has reached nearly 150 billion yuan, among which the dividend amount of E Fund Shanghai and Shenzhen 300 ETF will exceed 5 billion yuan. In the eyes of industry insiders, fund dividends are beneficial for enhancing investors' holding experience and supporting long-term investment. On October 17th, E Fund announced that the E Fund CSI 300 ETF will distribute dividends, marking the first time this year that the E Fund CSI 300 ETF has distributed dividends. However, due to its size exceeding 200 billion yuan, the dividend amount is quite substantial. According to the dividend plan, E Fund Shanghai and Shenzhen 300 ETF plans to distribute 0.804 yuan for every 10 shares. According to calculations, the fund's dividend amount this time is approximately 5.322 billion yuan. The reporter found that this is also the first fund with an annual dividend amount exceeding 5 billion yuan since 2022. Not only E Fund's CSI 300 ETF announced dividends. On October 16th and 17th, 56 and 25 funds respectively issued dividend announcements, making such a dense distribution of dividends relatively rare. From the perspective of overall dividend amount, data shows that as of October 17th, over a thousand funds have distributed dividends this year, with a total dividend amount of 148.301 billion yuan. Bond funds and index funds have become the main dividend recipients. From the perspective of individual fund dividend amounts, in addition to E Fund's CSI 300 ETF dividend amount exceeding 5 billion yuan, Huatai Bairui CSI 300 ETF dividend amount is 2.494 billion yuan, and Jiashi CSI 300 ETF dividend amount is 1.665 billion yuan. In addition, Southern CSI 500 ETF, Bank of China Securities (601696) Anjin Bond, Golden Eagle Tianying Pure Bond, and Honeycomb Fengjia Bond have all received dividends exceeding 1 billion yuan this year. In the eyes of industry insiders, many ETFs have received large dividend amounts since the beginning of this year, mainly due to their rapid growth in scale. According to estimates, as of October 16th, the size of E Fund's CSI 300 ETF was 253.714 billion yuan, Huatai Bairui's CSI 300 ETF was 391.254 billion yuan, and the size of Jiashi CSI 300 ETF and Southern CSI 500 ETF were both over 100 billion yuan. In terms of dividend frequency, multiple funds have distributed dividends up to 10 times this year. Among them, Huatai Bairui CSI Dividend Low Wave ETF Connect and Huatai Zijin Monthly One Month Rolling Bond have all received dividends 10 times this year. According to industry insiders, fund dividends can help enhance investors' holding experience in a volatile market environment. China Europe Fund stated that the fund's distribution of fund returns to investors is temporarily exempt from income tax, and fund dividends are exempt from dividend handling fees. Investors who choose the dividend reinvestment method are exempt from subscription fees for the fund shares obtained from dividend reinvestment. In order to enhance investors' holding experience and meet investment needs in volatile markets, fund companies are also continuously strengthening their dividend models. The fund dividend evaluation mechanism also gives fund managers the opportunity to optimize investment portfolios and control fund size, which has a certain positive significance for fund investment management The China Europe Fund stated. According to the latest trends in the industry, more and more ETFs are actively distributing dividends. Taking the first batch of 10 CSI A500ETFs as an example, 9 of them adopted a regular dividend mechanism, and some fund companies even distributed dividends on excess returns based on monthly evaluations. In addition, Morgan Asset Management, Taikang Fund, Jiashi Fund, and others adopt a mandatory dividend mechanism. Even if the ETF's net asset value has some floating losses, as long as it outperforms the benchmark index and meets the relevant terms of the fund contract, dividends can be distributed. Morgan Asset Management believes that regulatory authorities continue to encourage listed companies to increase the frequency and intensity of dividends, promote the market to pay more attention to dividends and value investing, enhance market stability and investment returns, and the dividend era of A-shares is promising. In this context, dividends from the constituent stocks of the underlying index may become an important source of excess returns for ETFs. By distributing dividends based on the excess returns of the fund, the dividends of listed companies can be effectively transmitted to investors through fund dividends, allowing investors to truly feel the continuous improvement of the A-share market ecology, enhance investment satisfaction, and help achieve long-term investment. Looking at the extension period, since the birth of public funds in 1998, the cumulative dividends have reached trillions of yuan. E Fund stated that the scale of public funds exceeds 30 trillion yuan, serving over 750 million individual investors, and the cumulative dividends of various public funds since 1998 have reached 4.8 trillion yuan. Public funds practicing inclusive finance should be guided by enhancing investors' sense of gain, helping residents share the dividends of economic growth, and expanding channels for residents' property income. (New Society)

Edit:Yao Jue Responsible editor:Xie Tunan

Source:China Economic Net

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