Ant Financial’s Yu’E Bao fund has shrunk to its lowest size in over two years as the government looks to downsize the fund due to systemic risk issues; the shrinking of the fund was due to pressure from the government for Ant to begin shifting users away form the product and monetary easing from the PBoC which has made money market funds less attractive; Yu’E Bao also now offers 13 other money market fund products from outside fund managers as they comply with pressure to move users into different funds to spread the risk; analysts don’t believe this will overall hurt Ant Financial very much as there is a belief that the fees garnered from the fund are minimal to Ant’s bottom line. Source.
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.