On April 22, BlackRock China new vision hybrid fund managed by Shan Xiuli and Tang Hua of BlackRock Fund Management Co., Ltd. released its first quarterly report.
From the first quarterly report, the mixed performance of BlackRock China new vision, which bears the halo of “the first foreign public offering product”, is obviously difficult to be satisfactory. In response to this performance, in the first quarterly report, it said that the performance in the first quarter was weaker than the performance benchmark, mainly due to the drag caused by the positions of new energy, electronics and other related positions.
Since its establishment, in the context of market adjustment, BlackRock China’s new vision mix has been somewhat “untimely”, but this has not undermined BlackRock’s confidence in the continued layout of the Chinese market. As the fund managers Tang Hua and Shan Xiuli promised in the quarterly report, despite the unpredictable market style, the fund will adhere to its original intention, focus on finding and patiently holding excellent growth companies, cross the cycle and focus on long-term sustainable returns.
completed warehouse building
On April 22, BlackRock China new horizon hybrid securities investment fund, the first product issued by BlackRock fund in the mainland, released the first quarterly report of 2022. Fund managers Tanghua and shanxiuli said that the fund had completed its position building in the first quarter of this year. By the end of the reporting period, the position had increased compared with the fourth quarter report of 2021, which was at a medium level.
In September last year, BlackRock China new vision hybrid, the first public fund issued by BlackRock in China, was officially established. During the raising period, it received a total of 6.68 billion yuan of capital subscription. However, since then, the scale of the fund has continued to shrink. As of March 31, the scale of BlackRock China new vision hybrid a was 4.333 billion yuan.
From the first quarterly report, during the reporting period, the net value growth rate of its class a fund units was – 14.90%, the performance benchmark yield was – 10.50%, and the overall performance benchmark underperformed.
In this regard, BlackRock Fund said that the performance of the fund in the first quarter was weaker than the performance benchmark, mainly due to the drag caused by the positions of new energy, electronics and other related positions.
Further, it said that we strictly abide by the fund’s investment philosophy of “long-term sustainable growth stocks”, pay attention to companies with high profit growth in various industry sectors, and tap high-quality companies with high confidence from bottom to top, mainly focusing on new energy with high growth certainty, semiconductors benefiting from domestic alternatives, some undervalued growth banking stocks, food and beverage and machinery.
In terms of asset allocation, the proportion of shares and shares in the top ten funds in quarter and quarter was 4605 and shares accounted for 28% of assets in quarter 202; respectively. Compared with the previous quarter, the top ten heavyweight stocks of the fund added Sg Micro Corp(300661) , Jiangsu Goodwe Power Supply Technology Co.Ltd(688390) , Hemai shares, Bethel Automotive Safety Systems Co.Ltd(603596) , Suzhou Maxwell Technologies Co.Ltd(300751) , Wingtech Technology Co.Ltd(600745) ; Among them, Sg Micro Corp(300661) holds 6.49%, which is the largest heavy position stock of the fund Luxshare Precision Industry Co.Ltd(002475) , Kweichow Moutai Co.Ltd(600519) , Hangzhou Great Star Industrial Co.Ltd(002444) , Autel Intelligent Technology Corp.Ltd(688208) , Anhui Honglu Steel Construction(Group) Co.Ltd(002541) , Tofflon Science And Technology Group Co.Ltd(300171) , etc. withdrew from the top ten heavy positions.
Fund managers Tang Hua and Shan Xiuli promised in the quarterly summary that despite the unpredictable market style, the fund will adhere to its original intention, focus on finding and patiently holding excellent growth companies, cross the cycle and focus on long-term sustainable returns.
for the future, it said that in the short term, the fund will focus on:
(1) industries and companies benefiting from the elimination of systemic risks in the process of steady growth;
(2) the profitability of the middle and lower reaches of the industry after the normalization of overseas epidemic situation and the normalization of shipping price and raw material cost;
(3) the expansion of upstream bottleneck industries and when the suppression of the growth of new energy industry will end.
At the current time point, the fund will focus on the above points as an important reference, allocate sectors with low relevance to the economic cycle on the premise of avoiding the drift of the fund style, enhance the resilience of the portfolio, and strive to increase the protection and appreciation of the fund assets under the pressure of the market environment.
foreign giants continue to overweight the Chinese market
Although, from the first quarterly report, BlackRock China’s new vision mixed with the halo of “the first foreign-funded public offering product”, its performance is obviously difficult to be satisfactory, but this has not dispelled BlackRock’s confidence in the continued layout of the Chinese market.
Last June, BlackRock fund, China’s first wholly foreign-owned public offering fund, held an opening ceremony. As one of the largest asset management companies in the world, according to the fourth quarter report of 2021 released by BlackRock, by the end of the fourth quarter of 2021, BlackRock had a management scale of $10.01 trillion. The net inflow in the fourth quarter of 2021 was $211.7 billion, and the net inflow in the whole year of 2021 was $540 billion.
From the construction of BlackRock’s domestic team, at present, the main team of BlackRock fund has been set up. According to the information of the fund industry association, BlackRock fund company has 71 employees, covering investment research, supervision and audit, products and other departments. Some personnel come from public funds in China, including 5 fund managers and 1 investment manager.
For example, according to public information, Tang Hua obtained an MBA from Nanyang Technological University in Singapore and is a Chartered Financial Analyst (CFA). He once served as investment research director of BlackRock Investment Management (Shanghai) Co., Ltd., chief representative of Schroder Group Shanghai Representative Office, Central China Securities Co.Ltd(601375) research director and A-share investment manager of asset management headquarters, senior researcher of Shanghai Representative Office of Hong Kong power Pacific Co., Ltd., and Orient Securities Company Limited(600958) strategy researcher.
Shan Xiuli is a very typical fund manager trained by BlackRock. She holds a master of Science degree from Lehigh University and is qualified as a financial risk manager (FRM). He once served as investment manager of BlackRock Investment Management (Shanghai) Co., Ltd. and quantitative risk control / income analyst of BlackRock capital management (Wilmington, USA).
In terms of the opportunities for the future layout of Chinese assets, at the end of last year, BlackRock’s think tank issued a focus report on the outlook for 2022, which pointed out that the policy is expected to be loose, the regulation will continue but will not increase the weight, and insisted on moderately bullish on Chinese stocks.
BlackRock is not the only foreign-funded institution that insists on “over allocation” to China. Goldman Sachs has also issued several articles to reiterate its view of being bullish on China. Goldman Sachs report pointed out that based on good growth targets, loose policies, extremely low valuations and low investor positions, it still remains “over matched with the Chinese market”.
