Read the first book to understand investment and financial management

Chapter 26 Trust investment, a money game with credit as a bargaining chip (1)
what is a trust
Theoretically speaking, trusts can manage, use and dispose of various properties and property rights such as funds, securities, movables, real estates, and intellectual property rights, and can also engage in investment, loans, leases, sales, interbank lending, and project financing. , corporate finance, financial advisory and many other businesses.Therefore, trust is a comprehensive financial management tool.

Since the promulgation of my country's Trust Law, trust products developed by trust companies have sprung up like mushrooms after rain, becoming a bright spot in the investment and wealth management market. Most of these trust products are investment-type self-benefit trust products (that is, the trustor and People are the same person), mainly including the following.

[-]. Fund trust

Fund trust means that the trustor entrusts the funds he legally owns to the trust company based on his trust in the trust investment company, and the trust company manages and uses them for the benefit of the beneficiary or for a specific purpose in his own name according to the wishes of the trustor. punishing behavior.Fund trust business also includes: single fund trust business (i.e. a trust investment company accepts the entrustment of a single client, independently manages and uses trust funds according to the management method determined by the client) and collective fund trust business (i.e. trust investment company accepts two or two More than one settlor entrusts, manages and uses trust funds according to the management method determined by the settlor or the management method determined by the trust investment company).

At present, the trust products issued by domestic trust and investment companies are collective fund trusts.The operation process of this fund trust is as follows:

(1) Trust companies (trustees) formulate trust plans and sell them to investors (trustors) to collect trust funds, and investors are beneficiaries of trust properties;

(2) The trust company, as the trustee, invests the trust funds in the projects described in the trust plan, and the trust property is transformed from cash form into equity (equity investment) or creditor's right (loan to the project), that is, the funds are entrusted to the trust investment company, and the trust The company invests in the name of the company according to the wishes of the client.

For example, the "Shanghai Outer Ring Tunnel Project Fund Trust Plan" launched by Shanghai Aijian Trust and Investment Co., Ltd. is to gather the idle funds of many individuals and institutions to form a certain investment scale and strength. Ring tunnel construction and operation.As the trustee of funds, Aijian Trust Co., Ltd. obtains the dividends of Shanghai Outer Ring Tunnel Construction and Development Co., Ltd. through the transfer of the equity of Shanghai Outer Ring Tunnel Construction and Development Co., Ltd., and then pays the trust income to the beneficiary.

[-]. Securities investment funds

Securities investment fund, also known as mutual fund, is a financial management method that brings together the funds of many investors and is managed by professional institutions.Compared with other financial management tools, the biggest feature of the fund is that it has the dual characteristics of both savings and investment.Generally speaking, the biggest expectation of investment is the accumulation of wealth, and the last thing you want to happen is the loss of principal. The fund is based on the principle of stable investment to create profits, and it is specially designed for people who have no money or no time to manage money. financial products.Of course, funds, like other financial management tools, have different degrees of influencing factors such as risk, profit and realization.

[-]. Real Estate Trust
A real estate trust is a trust that mainly sells and manages real estate, and its income mainly comes from house rent or ground rent.Investing in real estate such as real estate has become the third largest investment area familiar to ordinary people after depositing money in banks and buying stocks.The newly-emerged "housing bank" in Shanghai is a typical real estate trust business - "deposit" excess real estate in the bank, and the institution is responsible for its leasing and daily maintenance, and pays benefits to depositors.

[-]. Valuables Trust

Valuables trust is an additional business of trust investment companies. Because trust companies generally have good security measures, such as solid and reliable vaults and safes, trust companies can keep valuables for customers upon request.

[-]. Intellectual property trust

Not only the property legally owned by an individual can be trusted, but also the expected property rights can be trusted. For example, the property rights part of intellectual property rights can be entrusted with mortgage financing and other related management and disposal activities.

In addition to the personal trust products introduced above, there are also life insurance trusts, testament trusts, children’s education trusts, and retirement protection trusts. Bring more choices.

Understanding the basic knowledge of trust will help to deepen the understanding of trust, lay the foundation for the next step of financial management, and entrust property rights to the trustee for management or disposal, so as to be prepared.

Irreplaceable advantages of trust financial management

The unique system design of the trust makes it possible to balance the relationship between property security and financial management efficiency. While providing sufficient protection for the settlor, it facilitates the trustee to manage property, so it has other advantages in personal financial management. Incomparable advantages of financial planning tools.This advantage is mainly reflected in the following aspects.

[-]. Professional property management and flexible financial planning
Compared with personal financial management alone, expert financial management saves time and worry, with low risk and high return.Personal funds collected through trusts are operated by professionals, who can use their professional knowledge and experience to make portfolio investments, thereby avoiding the blindness of personal investment, so as to reduce investment risks and increase investment returns.At the same time, trust companies can also customize non-standard products according to the preferences and characteristics of customers, and meet the client's requirements to the greatest extent through expert financial management.This kind of flexibility in investment methods and products is what securities companies and fund companies lack, and it is currently unavailable.

[-]. Independence of trust property

The independence of the trust estate protects family property.The trust laws of all countries in the world and our country stipulate that trust property has an independent legal status independent of the settlor, trustee and beneficiary.For a legally established trust, the property under its name is not affected by the death, bankruptcy, or legal proceedings of the settlor, trustee, and beneficiary, and the creditors of these three parties are not allowed to claim that the trust property should be used to repay debts.This creates a legal barrier to protect family property from being damaged for various reasons.We often hear that at the peak of their careers, some wealthy people in the West transfer their property to an independent legal subject through a trust.Our country's trust law also provides this legal means of protection for legitimate property.

[-]. The trust property strictly separates the rights and obligations, responsibilities and risks of the settlor, trustee and beneficiary

Once the trust contract is signed, the right to proceeds is separated to the beneficiary, and the right to use, dispose and manage is separated to the trustee.The trust contract has strict provisions on the use, management, and disposal of trust property, and the trustee can only operate in accordance with the scope and methods determined in the trust contract.This mechanism fixes the responsibilities and obligations of all parties involved and ensures the continuous and stable operation of the trust property along a specific purpose. Compared with the company system, it is a more scientific institutional arrangement.In addition, trust companies are known as "financial department stores" with flexible operations and various ways to use trust assets. They can not only engage in securities investment, but also engage in industrial investment, as well as loans, leasing, interbank lending, and project financing.This guarantees the implementation of portfolio investment and the resolution of financial risks in terms of business scope.

[-]. Legal tax saving function
As an independent legal subject, the income and profits generated by the trust property are different from the income and profits of the settlor and beneficiary in time and space, which creates conditions for legal tax savings.In addition, in a trust relationship, although there are various taxes, compared with simple gifts and inheritance, although gift tax may be required, it helps to reduce the settlor's income tax, inheritance tax, and land value-added tax. Wait.This has special significance for how the wealthy class can accumulate wealth from generation to generation through inheritance trusts and maintain family glory.Therefore, through trust estate planning, legal savings in gift tax and inheritance tax can be realized.At present, most of the property transfers in our country are realized in the form of gift or inheritance, but it is believed that gift tax or inheritance tax will be implemented soon. Referring to similar laws abroad, the tax rate of both is as high as 50%.Therefore, consideration of taxation has become the main problem faced by the wealthy class in transferring property.How to reduce transfer costs has become the focus of personal trust estate planning.

Trust wealth management has advantages that other financial management tools cannot match. Knowing the advantages of trust wealth management can not only enhance your investment confidence, but also use these advantages to avoid disadvantages in trust wealth management and enjoy more benefits.

Buy trust financial products to "three look"

Trust financing is a property management system.There are three parties in a trust relationship: the settlor, the trustee, and the beneficiary.The trustee manages and disposes property in his own name.

In my country, trust wealth management products refer to all the funds raised by RMB wealth management products issued by banks, which are invested in special trust plans with designated trust companies as trustees.At present, the trust wealth management products launched by various banks in the market are mainly the cooperation between banks and trust companies, and the raised funds are invested in trust wealth management plans launched by trust companies.The income of trust wealth management products can be fixed or floating.

Today, the stock market continues to decline, the real estate market is facing deep adjustments, and the yields of many wealth management products in the market have been lowered one after another. Because of the high investment threshold, trust products that have been hidden outside the mainstream wealth management products, relying on their higher yields And the ability to resist risks has begun to attract the attention of more and more financial professionals.

High returns and good stability are the main selling points of trust financial products.Trust wealth management products are generally trust plans with excellent qualifications and stable income, such as infrastructure, high-quality real estate, and equity pledges of listed companies. It is a head higher than ordinary floating income wealth management products.At the same time, during the investment process, the bank will constantly monitor and track the trend of loans, so as to avoid the investment risks of trust projects to the greatest extent.

However, the reason why trust financial products are not familiar to many financial managers is that they are subject to relatively high thresholds.Most of the trust products launched by trust companies have a capital threshold of more than 1 yuan, and the lowest is 50 yuan.In addition, compared with stocks and bonds, the liquidity of trust products is relatively weak, and the ability to realize cash at any time is relatively poor.

Trust experts believe that before purchasing trust financial products, there are three main points to look at:

First of all, investing in trust wealth management products depends on the investment target.All investments have risks, and the research on investment targets can roughly determine the risk level of such trust wealth management products.In general, trust projects investing in real estate and stock markets have slightly higher risks, but their expected returns are also relatively high; while trust projects investing in energy, electricity, municipal infrastructure construction, etc. are relatively stable, with lower risks but expected returns. The income is relatively low.

Secondly, investment trust financial products should pay attention to the investment period.The term of trust wealth management products includes 3 months, half a year, 1 year, 2 years, etc. It is recommended that investors choose trust wealth management products within 1 year, because it is not easy to judge the trend of a long period of time in the future, and the longer the time, the uncontrollable The greater the risk, and the time length of trust financial products within one year is moderate, and the investment rhythm is easy to grasp.

Finally, it is necessary to comprehensively consider the trustee of the wealth management product, that is, the trust company's investment management capabilities, risk control system, management team, and historical performance.And continue to pay attention to the specific transaction structure and post-management of the trust project, that is, the specific use and investment direction of the trust property, whether the operation period meets its own investment requirements, how about the liquidity and average rate of return.In addition, it is necessary to pay attention to the guarantee measures adopted by trust products, who will guarantee and what will be used for guarantee, and whether the expected guarantee measures can compensate the trust principal in a timely and effective manner.

Investors should keep a clear head when faced with a wide variety of fund trust products (plans), comprehensively analyze the characteristics of specific products according to their own risk tolerance and in combination with various factors, and invest selectively in order to benefit from trust Satisfactory return on investment.

What should Public Investment Trust pay attention to?

(End of this chapter)