News summary
Frequent debt-based redemptionsunchartedlegacyofthievescollectionpccrash, there were 25 announcements in May. Institutional motivations were diverse, not only due to performance, but also involving asset allocation adjustments and fund assessments.
Newsletter text
Debt-based redemption has increased significantly recently. Industry insiders pointed out that redemption motives are complex, not just due to poor performance.
Recently, debt-based redemptions have become frequent, especially when transactions are activeunchartedlegacyofthievescollectionpccrashin the context. Statistics show that in May alone, as of the 24th, fund companies had issued 25 announcements on improving the accuracy of debt-based net worth to deal with redemptions. Market analysts explained that there are many reasons for institutions to redeem debt bases, which may involve needs such as asset allocation adjustments or internal fund assessments. For example, for some fixed-open debt bases with long closed periods, after the closed period ends, the funds will usually be reconfigured according to the allocation period and then choose to be redeemed. In addition, when the single holder's share exceeds 20%, redemption is more likely. For institutional customized products, the fund company is usually communicated before redemption.