China Everbright Bank positioned itself in the frontline of wealth management after launching the first Renminbi wealth management product in the domestic market; recently, CEB played its role of leadership.On January 15th, CEB launched the first wealth management product in the domestic market that focuses on education – Sunshine Wealth Management Plan E.Plan E centers on the education of children in typical families, and effectively combines the existing financing plans A and B.Through multiple structural arrangements, such as principal-protected structure, yield-enhancement structure, term matching and rolling issuance, Plan E aims to best meet the needs of families in terms of education, providing a high-return and low-risk financial product to parents who long to see their children succeed in life, realizing the win-win goal of “accumulating bit by bit, realizing children’s great future.”

Attaching great importance to education has been a fine tradition of the Chinese.Investment on education has become an increasingly important part of Chinese families’ expenditure.Aside from their own savings for the purpose of offspring-education, parents often hope for other long-term investment channels that can bring them stable returns.Recognizing this potential need of the clients, based on the fundamental principles of financial engineering, CEB designed the new Sunshine wealth management product Plan E on the basis of Plans A and B.It is known that Plan E mainly consists of three wealth management products: “Golden Scholar Nurturing Plan” in Renminbi, “Doctorate Studying Abroad Plan” in foreign currencies and “No Worry Studying Abroad Plan”.After joining in the Plan, clients are provided with additional financial services, including financing seminars, deposit certificate, credit card, purchasing exchange abroad, wealth management planning for high-end customers, etc.

The three main products under Plan E have the following characteristics in terms of their design:

Firstly, the three products have stable expected return rate. The core of Renminbi wealth management product is bonds that are of national credit; foreign-currency wealth management products utilize relevant financial derivatives on the international financial market to match the basic product, providing return guarantee.On the basis of principal-protected structure, Plan E provides its clients with a long term investment channel that has a stable return.For example, the “Golden Scholar Nurturing Plan” permits clients to terminate the Plan in advance, and gives clients the right to withdraw in advance at the end of two years or three years, so that investment terms are flexible enough for clients to invest in phases, and returns are maximized.The longest accumulated investment period is 4.5 years, and the cumulative return rate for a term of 4.5 years can be as much as 18.58%.

Secondly, the fact that products are launched on a rolling basis and that the term structure of products matches the expenditure cycle of families is conducive to a concentrated investment and a more precise wealth management for parents.Both Renminbi and US Dollar products have multiple terms, and are launched on a rolling basis throughout the year; therefore, depending on the ages of the children and changes of family income, parents can buy products of different terms in different years, so as to find the most appropriate product to match their education expenditure.This is especially true for the US Dollar product; the term usually expires at the end of the fifth, sixth and the seventh months; principal and interest are paid to investors when they need to pay for their children’s education.

Thirdly, the product provides sufficient liquidity arrangements.When clients are in urgent need of capital, both the Renminbi and foreign-currency products under Plan E can provide pledge loans.As for the Renminbi product, clients can choose to terminate the product before the expiration date of the term; therefore, at any fixed point in time, clients can choose whether to continue the Plan or not.This fully satisfies the needs of clients for a highly liquid product.

Fourthly, the foreign-currency product takes into consideration the different circumstances in different destination countries.To students who are studying in countries other than the United States, such as the United Kingdom and Australia, in order to help them avoid risks brought about by interest rate fluctuation when exchanging for US Dollars, Plan E’s “No Worry Studying Abroad Plan” helps to offset the loss caused by interest rate fluctuation with the extra return earned by purchasing the Plan.

From the design of these products, we can see that Plan E as a whole satisfies the different education expenditure needs of the clients to a very large extent.In addition, since the design of Plan E stands at the very frontline of financing, it is of very high investment value even when it is invested not for the purpose of education.

In addition, a chain of wealth management services that accompany Plan E are available to clients who purchase the Plan, including: financing seminars, deposit certificate, purchasing exchange abroad, Bank Guarantee for studying abroad, bill of exchange, telegraphic money order, and credit card services.