The first batch of fund annual reports reveal what secrets of the investment circle

Industry Insider Analysis Equity assets will gradually move from value revaluation to value growth The macroeconomic environment at home and abroad is expected to continue to improve this year

As of March 3, a number of fund companies have released their annual reports. These include 26 funds managed by Lu Bin, a fund manager under HSBC Jinxin, and 4 funds under Zhonggeng Fund; In addition, with the disclosure of the annual reports of listed companies, the revenue of public funds in which they control or participate has also been exposed. On the evening of March 5, China Merchants Bank released its 3 annual report, and the specific operation of China Merchants Fund also surfaced. That evening, SDIC released its 24 annual report. At the same time, the specific operation of Essence Fund has also been freshly released. As fund companies have successively disclosed their annual reports, the reporter of Beijing Youth Daily tried to unlock some secrets of the fund's investment circle for investors by combing through the first batch of annual reports that have been announced, such as the hidden heavy stocks of the fund and the management fee of the rise in net value.

Keyword: drawdown

Star fund managers also suffered losses

On March 3, Zhonggeng Fund released the 22 annual reports of its five funds, all of which were managed by star fund manager Qiu Dongrong. Over the years, Yau has been known in the investment community for sticking to low-valued value investing. However, from the performance of the whole year 5, 2022 of its managed funds still lost money. These three are Zhonggeng Value Pilot, Zhonggeng Small Cap Value and Zhonggeng Value Pioneer. Among them, Zhonggeng Value Pioneer had the largest profit loss, with a profit loss of 2022 million yuan during the year, and the net value of fund shares also fell by 3.8% during the year. The net value of the two closed up during the year, including Zhonggeng Value Quality One Year and Zhonggeng Value Navigator, which rose by 08.8% and 20.8% respectively during the year. During the year, the return on net worth declined, except for the aforementioned Zhonggeng value pioneer, Zhonggeng Value Smart and Zhonggeng small-cap value fell by 77.4% and 85.0% respectively.

Recently, the official website of HSBC Jinxin Fund also released the 4 annual reports of 2022 funds (initial fund caliber). Among them, HSBC Jinxin Low Carbon Pioneer Stock A was established in June 2010, and the current fund manager is Lu Bin, who began his career in August 6. According to the 2019 annual report, the net value of HSBC Jinxin Low Carbon Pioneer Class A shares retraced by 8.2022% for the whole year, underperforming the performance benchmark by 24.50 percentage points. With the drawdown of the net value, the product accumulated a loss of 1.96 billion yuan in 2022, collected management fees of 27 million yuan, and the scale fell below 43 billion.

Except for HSBC Jinxin Times Pioneer A, which was established in June 2022, there is no annual data yet. Wind data shows that the annual performance returns of the other three fund products are all negative, HSBC Jinxin Dynamic Strategy A, HSBC Jinxin Low Carbon Pioneer A, HSBC Jinxin Core Growth A are -6.19%, -39.24%, respectively.

-19.46%。 Under the influence of performance, the scale of fund products has also "shrunk". Wind data shows that compared with the end of 2021, the fund size of HSBC Jinxin Dynamic Strategy, HSBC Jinxin Low Carbon Pioneer and HSBC Jinxin Core Growth fell by 29.37 billion yuan, 12.<> billion yuan and <>.<> billion yuan respectively.

Keywords: heavy stocks

It is difficult to achieve absolute returns in equity investment

As can be seen from the annual report, funds generally experienced a large drawdown in 2022. In 2022, the capital market has experienced ups and downs. A fund's position is a decisive factor that affects its returns. So, which stocks are revealed in these annual reports? With the successive disclosures of the 2022 fund annual reports, the holding trends of many star fund managers and "hidden heavy stocks" have also surfaced. Taking the large-scale Zhonggeng Value Navigator as an example, the annual report data shows that the fund holds a total of 220 individual stocks, focusing on non-ferrous metals, petroleum and petrochemicals, real estate, banking, pharmaceuticals, coal, transportation, utilities and other industry-related stocks, and the industry risks and style risks are relatively diversified. The top five stocks purchased by Zhonggeng Value Navigator last year were Meituan-W, CNOOC, China Hongqiao, China Overseas Development, and Kuaishou-W, all of which exceeded 15.2022 billion yuan; The top five stocks sold in total are Meituan-W, Kuaishou-W, China National Offshore Oil Corporation, Tencent Holdings and Luxi Chemical. A simple comparison of the financial report can find that Meituan-W, which was originally the fourth largest heavy stock in the fund in mid-2022, has dropped to 170 at the end of 702, and its position has also dropped from 53.500 million shares to 763 shares; Kuaishou-W is also in a similar situation, with its position reduced from 55.8 million shares to 88,<> shares, and also withdrew from the list of heavy stocks. It can be seen that fund manager Qiu Dongrong "cleared" Hong Kong stocks such as Meituan and Kuaishou, and increased the allocation of energy, optional consumption, materials and other industries.

Qiu Dongrong said in the summary of the 2022 annual report that it is also difficult for equity investment to achieve absolute returns. In terms of industry, it is necessary not only to avoid the damaged industries with huge declines, but also to favor energy resource companies with strong performance. At the same time, in the year of double squeeze of stock earnings and valuation, the style should pay attention to value stocks with prominent defensive characteristics.

The top three cumulative purchases of HSBC Jinxin Dynamic Strategy last year were CATL, Oriental Fortune and Shenfu, with 7 million yuan, 02 million yuan and 5 million yuan respectively. At the same time, the fund's stocks with the largest cumulative sales amount were Vanke A, Guanghui Energy and Songcheng Performing Arts, which sold 32 million yuan, 4 million yuan and 44 million yuan respectively last year. From the perspective of industry allocation, HSBC Jinxin's dynamic strategy focuses on the allocation of individual stocks in information technology, materials and finance. Looking back at last year's layout, Lu Bin laid out a lot of value stocks at the beginning of last year, such as non-banking and real estate industries, and at the end of July that year, it was expected that the fundamentals of the new energy industry would enter the mid-term, and adjusted a small proportion of new energy positions to the TMT industry. When the market corrected again in the fourth quarter, Lu Bin focused on industries where fundamentals continued to improve and valuations were tense in the future.

Among the latest top 11 hidden heavy stocks (i.e. the 20th to 3th heavy stocks) of HSBC Jinxin Dynamic Strategy, the market value of Anheng Information accounted for 08.2% of the net value of the fund, and the market value of the position was 27 million yuan; in addition, Hangke Technology, Aiwei Electronics, CITIC Securities, Hengrui Pharmaceutical, WuXi AppTec and Zhongwang Software accounted for more than 2% of the net value.

Keywords: management fee

The increase in net value drawdown management fees has caused controversy

Judging from the annual reports released by the first batch of fund companies, although the fund's income in the past year was not satisfactory, the management fee did not decrease but increased. The data in the annual report has also sparked heated discussions in the fund community. Some people believe that if the fund company does not have a good return, it should moderately reduce the management fee, so as to at least appease some people. According to the disclosed fund annual report data, Zhonggeng Value Navigator's management fee income reached 1 million yuan, an increase of more than two times compared with 55.2021 million yuan in 4604.

In addition, HSBC Jinxin Dynamic Strategy and HSBC Jinxin Low Carbon Pioneer also had management fee income of more than 2022 million yuan in 1, an increase compared with 4, of which the management fee income of HSBC Jinxin Dynamic Strategy doubled. However, the calculation of the fund management fee is also related to the size, and if the size of the fund increases, the corresponding management fee is increased. However, according to the observation of the Beiqing News reporter, although the management fee income of some funds in 2021 is higher than that in 2022, the share of funds has not increased, or even decreased. For example, HSBC Jinxin Low Carbon Pioneer A had 2021.2022 billion fund shares at the end of 22, compared with 23.2021 billion fund shares at the end of 25, and Zhonggeng Value Quality held 27.2022 billion shares in 44, compared with 99.2021 billion shares in 45, a decrease of nearly 98 million shares.

Another fund that has attracted much attention from the public is EFORTIS Growth Value Blend. With the drawdown of net value, as of the end of 2022, EFORTIS Growth Value Mix has accumulated a floating loss of about 8 million yuan. However, despite the large losses of the fund, as a fund manager, EFORTIS Fund can still rely on management fee income to achieve drought and flood protection. EFORTIS Growth Value Blend's annual management fee is 6.1%. As the fund manager, EFORTIS Fund has collected a cumulative management fee of about 5 million yuan as of the end of the second half of 2022. Some investors chose to vote with their feet, and the total number of fund shares in the fund fell from 0.62 billion at the time of issuance to 37.5 billion at the end of the fourth quarter of 2022, a drop of more than 23%.

Keyword: Focus on 2023

A turning point year in which investment opportunities outweigh risks

Looking forward to 2023, Zhonggeng Fund said that the macro background changes are underway, China's "stable growth" implementation and the global "anti-inflation" decline, the fundamentals rise and fall. Qiu Dongrong mentioned in the annual reports of many funds that he focuses on value stocks with historically low valuations, focusing on supply-side contraction or rigid industries, and their potential resilience in the case of demand recovery, the main industries include real estate, finance, resource companies represented by base metals and energy companies in large-cap value stocks.

For some growth stocks in growth-oriented industries such as computers and electronics, Qiu Dongrong believes that along the road of independent and controllable localization, relevant companies are full of opportunities on the demand side and the consumer side, believing that these industries have tapped into low-risk, low-valuation, and high-growth targets, and have the potential to become large bull stocks.

For investment in 2023, Lu Bin of HSBC Jinxin Fund believes that equity assets will gradually move from value revaluation to value growth, which is a turning point year when investment opportunities outweigh risks, and it is also a year that tests investment ability. In 2023, the macroeconomic environment at home and abroad is expected to continue to improve. The sharp upward trend in overseas inflation is coming to an end, and the Fed's interest rate hike is nearing its end. Various domestic support policies have been introduced one after another, the economy has entered a recovery channel and returned to potential growth levels, the real estate market and consumer demand that have been suppressed by the epidemic in the past are expected to usher in a significant improvement, corporate earnings are expected to recover, and economic data in all aspects also show positive factors.

Fund managers generally agree that market confidence is gradually increasing, and confidence is more valuable than gold. How many market and investment secrets have you mastered revealed in the first annual reports of fund companies in 2022?

Text/Reporter Zhu Kaiyun Coordinator/Chi Haibo

(Beijing Youth Daily)