News summary
Fund executive changes hit new high in recent yearsambassadeurc3, 116 senior executives moved more than the number of fund managers resigned, and intensified industry competition and shareholder changes were key influencing factors. Experts suggest establishing a long-term incentive mechanism to stabilize the senior management team is crucial to the stability of fund company strategies and investment research systems.
Newsletter text
[The number of changes in public offering executives exceeds the number of resignations of fund managers, highlighting intensified competition in the industry]
Recent industry trends show that senior executives in the public fund field change increasingly frequently. According to Wind data, as of May 25, a total of 116 senior executives of 62 fund management companies had undergone job changes, exceeding the number of resignations of 115 fund managers during the same period.
The unusually high rate of executive turnover reflects the fierce competition in the fund management industry. At present, the total number of fund managers and senior executives is 962, with a rate of change reaching 12ambassadeurc3.06%, relatively speaking, the total number of fund managers is 3777, and the turnover rate is only 3.04%.
[Measures such as equity incentives and salary deferral may help improve the career stability of fund managers]
Wind data also revealed that between 2021 and 2023, the number of people leaving public funds exceeded 300 annually, but the turnover rate showed a downward trend year by year, from 10% to 8.59%.
The analysis of the Ji 'an Jinxin Fund Evaluation Center pointed out that the changes in senior management of fund companies are mostly driven by factors such as shareholder changes and substandard performance.
Increased market volatility and performance pressure are the main incentives for executives to leave, especially for active equity funds.
[Misguided executive changes may have a negative impact on the strategic development of the fund company]
Industry experts generally believe that high turnover rates at senior management may pose challenges to fund companies 'strategic execution, management and investment research systems.
Wang Tieniu pointed out that executive changes may affect the consistency of investment decisions, team stability, and even investor confidence.
[Fund companies need to take a variety of measures to increase the stability of their senior management teams]
Against the background of reducing fees and commissions, fund companies need to enhance the stability of their senior management teams by improving internal governance, extending assessment cycles and improving incentive mechanisms.
Chi Yunfei suggested that fund companies strengthen internal governance, optimize decision-making transparency, establish a positive corporate culture, and enhance compliance awareness to reduce the loss of senior management.
At the same time, establishing a team-based investment research system and improving the executive appointment system and successor planning are also the key to ensuring the implementation of the company's long-term development strategy.
