——Trust Asset Management, FoF Investment and Evolution
On November 16, 2021, Dr. Liu Ruizhi, currently the Deputy General Manager and Investment Manager of the Capital Market Department of Chongqing International Trust Co., Ltd., was invited to our college to give a lecture on the theme of "Trust Asset Management, FoF Investment and Evolution" at an industry forum.
Dr. Liu Ruizhi is a talent introduced by Chongqing Talent - Yubei "Innovative Talents in the Sky" program. He has served as a member of the Youth League Committee and FoF Investment Manager of Shanghai International Trust Co., Ltd. He is one of the first researchers and investment managers in the field of trust private equity FoF in the trust industry, and has rich experience in trust asset management. In this forum, Dr. Liu Ruizhi introduced the direction of trust transformation under the background of macroeconomic transition, as well as the investment strategy and framework of trust FoF, and further looked forward to the future evolution direction of the asset management industry.
At the beginning of the forum, Professor Liu Ruizhi introduced us to the definition of trust based on the 12th century British USE system: the settlor entrusts their property rights to the trustee based on their trust in the trustee, and the trustee manages or disposes of them in their own name for the benefit or specific purposes of the beneficiaries according to the settlor's wishes. Teacher Liu then gathered a series of trust cases for us: funds, securities asset management, insurance asset management, etc. all belong to the category of trusts.
Afterwards, Teacher Liu Ruizhi introduced how trusts can achieve transformation in the new economic environment. In the old cycle era, manufacturing, real estate, and infrastructure investment were the mainstream, which also led to trust businesses mainly relying on asset collateral for industrial and commercial enterprise loans, real estate businesses, and government credit businesses. However, in the new economic environment, the proportion of consumption is gradually increasing, investment driven cost-benefit analysis is insufficient, and the necessity of countercyclical stimulus is decreasing. The redistribution of economic factors has also led to the transformation of trusts: returning to their roots and achieving a dual cycle driven by funds and capital.
Finally, Teacher Liu Ruizhi introduced trust FoF and asset allocation, as well as their evolution. FoF is a fund that determines beta returns from top to bottom and alpha returns from bottom to top. Teacher Liu also explained to us the process of FoF from pre investment screening to post investment verification.
During the questioning session, students actively and enthusiastically raised questions and exchanged and discussed with Dr. Liu Ruizhi about the specific work content and trust purchase methods in the trust industry. Dr. Liu Ruizhi provided detailed answers to each question. Through this forum, students have gained a more comprehensive understanding and recognition of the trust industry.
Contributors: Yang Yuling, Wang Yanyan
Image provided by: Zhao Yi
