Everbright Wealth Management product experiences massive redemptions, with the annual return rate dropping to -14.27%

Reporter Liu Dajiang, Intern Reporter Peng Fei

Due to the recent adjustments in the stock and bond markets, the bank wealth management market has seen increased volatility, with many medium to low-risk fixed income products experiencing net value declines and falling yields. Among them, a product from Everbright Wealth Management Co., Ltd. (referred to as “Everbright Wealth”) has drawn particular attention, as its net value has significantly adjusted downward over the past three months, and its annualized yield has dropped to -14.27% this year.

Significant Decline in Yield

The reporter found that a product under Everbright Wealth named “Sunshine Jin Zeng Li Stable Daily Purchase Custom (90 Days Minimum Holding) No. 2 A” has recorded three consecutive months of negative net value growth since 2026. Especially since January 20 of this year, the net value has shown a marked downward trend. As of March 24, the net value drawdown of this product has reached 3.2%, ranking among the top in all fixed income products.

In addition to the significant net value decline, this product’s yield has also plummeted recently, resulting in severe losses this year. According to the Everbright Wealth official website, as of March 26, the annualized yield for the last month was -8.35%, with the annualized yield for the last three months dropping to -13.15%. The annualized yield since 2026 has further plunged to -14.27%. In 2025, the product’s annualized yield was 4.73%, but after a significant decline this year, by March 26, its annualized yield since inception has decreased to only 1.15%.

This lower-risk fixed income product from Everbright Wealth was established in December 2024, with an initial fundraising scale of 10 million yuan. The initial performance benchmark was set at 2.05% to 2.55%, but after three adjustments, the latest performance benchmark has been lowered to 1.15% to 2.05%, with a maximum cut of 90 basis points.

The decline in yield of this product this year is uncommon among low-risk public wealth management products in the entire wealth management market. In stark contrast to the sharp drop in product yields, the Everbright Wealth website states in the product introduction that the “Sunshine Jin” series products are part of the company’s “fixed income” product line, primarily positioned for “absolute return” strategies.

If the annualized yield of this product continues to decline this year, its “absolute return” will be difficult to guarantee. Additionally, there is a possibility that the product could be prematurely terminated or liquidated, leaving investors who continue to hold this product facing uncertainty.

The product’s investment report for the fourth quarter of 2025 shows that by the end of the period, the product’s scale has shrunk to approximately 169,800 yuan, with only demand deposits remaining in the top ten holdings, accounting for 37.53%. At the end of June 2025, the product’s scale was still 5.246 million yuan, and in the top ten holdings, besides demand and time deposits, there was also a private equity asset management product. At the end of the first quarter of 2025, the product’s scale was 7.4543 million yuan, with only one demand deposit in the top ten holdings, and the rest being private equity, public equity, and other asset management products and bonds.

Regarding the current operation of this product, the reporter inquired with Everbright Wealth as an investor, and the response indicated that in January 2026, the product scale dropped from rapid redemptions to about 10,000 yuan. Due to the redemption confirmation rules and the accrual of basic product fees, the product’s net value experienced a significant drop. The fluctuations in net value are mainly due to large redemptions, which is considered a normal short-term phenomenon, and the product is currently operating normally.

A fixed income research department insider from a wealth management company told the reporter that the remaining scale of this product is about 10,000 yuan, categorizing it as a typical “mini-liquidation edge product,” with the remaining scale far below the operational threshold of conventional wealth management products, and management costs now exceeding yields, diminishing the commercial value of continued operation. Furthermore, the current asset allocation is extremely singular, only allocating to demand deposits, resulting in a highly concentrated risk exposure and poor volatility resistance.

“Large-scale redemptions by investors also reflect that the product’s yields did not meet expectations, and the decline in net value has led to a loss of trust, resulting in a significant decrease in remaining funds. The product may be prematurely terminated or liquidated, which is also a way for institutions to clear out low-efficiency assets,” the insider believes.

In addition to this “Sunshine Jin Zeng Li Stable Daily Purchase Custom (90 Days Minimum Holding) No. 2 A” product, other products from Everbright Wealth have also experienced net value declines and falling yields recently. The reporter found that a product named “Sunshine Jin Zeng Li Daily Purchase (One Year Minimum Holding) A” has an annualized yield of -1.21% for the last month, with a slight decline in net value since early March, and this is a medium-risk fixed income product. Additionally, a product named “Sunshine Jin Zeng Li Stable Enjoy Daily Purchase No. 5 (7 Days Minimum Holding) A” has an annualized yield of -1.32% for the last month, with a slight decline in net value in March as well.

Industry insiders believe that for Everbright Wealth, the decline in net value and yield falling into negative territory for its low-risk fixed income products this year mainly stems from a lack of flexible volatility control mechanisms. As a medium to low-risk product, the Sunshine Jin series should focus on high liquidity and low volatility fixed income assets, yet one product has shown a maximum drawdown exceeding 3.2% in the past three months. This indicates that the company has not established a robust net value fluctuation warning mechanism during product operations and has insufficient foresight regarding potential risks such as market interest rate changes and credit bond fluctuations, failing to adjust the holding structure in a timely manner to hedge risks.

Everbright Wealth indicated that for the Zeng Li Stable series and Zeng Li Stable Enjoy series, the short-term net value drawdown was mainly affected by fluctuations in bond market interest rates and changes in market liquidity, representing a normal phase of volatility following the transformation to net value and not stemming from credit risk of the product or abnormal risk rating of underlying assets.

In response to the multiple products experiencing net value drawdowns, Everbright Wealth stated that the company will subsequently enhance its diversified allocation capabilities, strengthen risk control discipline, and deepen investor engagement to optimize product performance in a complex market environment, striving to create sustainable and stable returns for investors in the long term.

Adjustment of Multiple Product Performance Benchmarks

Everbright Wealth is a wholly-owned subsidiary of Everbright Bank (601818.SH) and one of the 32 licensed wealth management subsidiaries. As of the end of 2025, Everbright Wealth’s wealth management products had a remaining scale of approximately 1.95 trillion yuan, ranking among the top in wealth management subsidiaries.

In light of the current macro background of continuously declining deposit rates and falling bond yields, leading wealth management subsidiaries including Everbright Wealth, Xingyin Wealth, Zhaoyin Wealth, and Zhongyou Wealth have recently made significant downward adjustments to the performance benchmarks of multiple wealth management products.

In the past two months, Everbright Wealth has already adjusted its “Sunshine Jin Zeng Li Stable Daily Purchase” series products, with fixed interval products generally reduced by 30-80 basis points, while some products have directly eliminated fixed values and are now fully linked to the China Bond Index. Industry insiders believe that these adjustments are partly aimed at aligning with the new regulations on information disclosure for asset management products that will be implemented in September 2026 (which require benchmark continuity and prohibit arbitrary adjustments), while also cleaning up the high-yield burden of existing products to match the current market yield center of 2.1% to 2.5%.

Since the beginning of this year, yields for various wealth management products in the market have generally declined. Data from Puyi Standard shows that as of the end of February 2026, the annualized yield for cash management products over the past month was 1.25%, slightly down from the previous month; the average annualized yield for fixed income products was 2.16%, which marked a significant decline of 146 basis points; the average annualized yields for mixed products and equity products were 1.30% and 5.83%, respectively, also showing a downward trend.

Huabao Securities stated in a recent research report that the performance benchmarks of wealth management subsidiaries must disclose detailed measurement bases, which are strongly correlated with investment strategies, underlying assets, and market performance, and in principle, should not be adjusted arbitrarily. Traditional fixed benchmarks face compliance pressures due to a lack of market logic and susceptibility to frequent adjustments. Meanwhile, as the yields on fixed income assets continue to decline, wealth management assets are unable to support the previously high fixed benchmarks, compounded by regulatory clean-ups of “yield rankings” and other irregularities, collectively forcing the industry to shift towards more prudent and realistic disclosures of yield expectations.

In addition to requirements from regulatory authorities, industry insiders also believe that Everbright Wealth’s recent frequent downward adjustments to product performance benchmarks reflect that the company has not truly achieved a risk-reward match during its net value transformation process. Moving forward, it will need to strengthen its analysis and investment capabilities in areas such as risk forecasting, volatility response, and refined asset allocation to better meet investors’ needs for stable wealth management.

Everbright Wealth responded that concerning position control, the company will strictly manage duration and leverage, shorten portfolio duration, reduce interest rate risk, and maintain leverage within regulatory compliance; secondly, it will enhance credit screening, prioritize allocation of high-rated, high-liquidity assets, and strictly control the proportion of low-quality credit bonds; thirdly, it will dynamically adjust positions to hedge risks by flexibly adjusting positions according to the market, increasing allocations to certificates of deposit, short-term bonds, and other stable assets to smooth out volatility.

(Edited by Wenjing)

Keywords:
Everbright Wealth