WHAT IS THE DOLLAR FUND OF FUNDS
The US dollar fund of funds is a new investment model of "dollar fund" + "fund of funds (FOF)";
U.S. dollar fund
Investment funds that originate from foreign investors and invest in the U.S. dollar market;
USD Fund of Funds
That is, foreign investors provide funds, set up FOF funds with U.S. dollars, and invest in different investment models of sub-funds.
Fund of Funds (FOF)
With funds as the investment target, the fund manager selects “sub-funds” with excellent performance from the funds issued by the company or other companies, and constructs a fund investment portfolio according to the investment objectives and the different attributes of the sub-funds;
The development history of the US dollar fund of funds
1. The birth of the FOF fund
In the 1970s and 1980s, FOF funds began to be issued sporadically.
3.Large-scale entry of foreign PE
A number of Internet companies such as BAT, JD.com, Ctrip and Mobike have benefited from USD funds; after China’s accession to the WTO, with the opening of the financial industry, foreign PE/VCs have entered the Chinese market on a large scale, and USD funds have become corporate financing. Important way.
2.The rapid development of FOF funds
As of September 21, 2011 Global FOF: The total amount reached more than 8,000; the total scale reached 1.67 trillion US dollars; FOF accounted for close to 10% of global mutual funds.
4.USD FOF status
Market-based FOFs are in a difficult situation. Only two market-based FOFs will be established in 2020; USD FOFs have bucked the trend. Incomplete statistics. From September to November 2020, only two months, public reports are in China The size of the US dollar fund established has exceeded US$4.3 billion.
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Advantages of USD Fund of Funds
Compared with RMB funds, USD funds of funds generally have a duration of 10 years and have long-term investment intentions.
Compared with smaller RMB funds, USD funds of funds usually have a scale of more than USD 1 billion, and they have strong investment capabilities.
On the one hand, the private equity industry in North America and Europe and the United States has a long history; on the other hand, the penetration rate of China's RMB FOF in 2018 was about 2.6%, and the penetration rate of USD funds was about 10% to 13%. U.S. dollar funds have more experience in FOF projects.
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