The curtain fell on the disclosure of the first quarterly report of the fund. In the context of the market downturn, the overall market value of equity assets of public funds shrank in the first quarter, 90% of equity funds lost their income in the first quarter, the positions of some fund products were adjusted to a certain extent, the shareholding concentration of leading companies and popular racetracks decreased, and the positions of big finance, medicine and steady growth industries increased. Looking forward to the future, the attitude of fund managers is generally more positive. Many fund managers admitted in the first quarterly report that economic growth will be stronger than market expectations, and the valuations of many industries are also at historical lows. They are optimistic about the future trend of the equity market.
overall contraction of stock assets
According to the data, as of the press release on the 24th, more than 3700 equity products (A / C consolidated calculation, the same below) under e fund, Fuguo, Jingshun Great Wall, Xingquan, GF, noan and other fund companies have released a quarterly report. In the context of market decline, the overall scale of public funds has shrunk. Specifically, the total market value of equity assets of public funds decreased from 7.03 trillion yuan in the fourth quarter of last year to 6.04 trillion yuan, of which the total market value of A-share assets decreased from 6.44 trillion yuan in the fourth quarter of last year to 5.51 trillion yuan.
In terms of industry, active equity funds have increased their holdings in the cycle, financial, real estate and pharmaceutical industries as a whole, and reduced their holdings in consumption and science and technology growth industries. According to China Industrial Securities Co.Ltd(601377) statistics, in the first quarter of 2022, the allocation ratios of active partial equity funds to scientific and technological growth, consumption, cycle, medicine and financial real estate were 39.60%, 22.10%, 17.70%, 12.46% and 8.15% respectively, with changes of – 2.31%, 1.18%, 1.59%, 0.80% and 1.10% respectively compared with the previous quarter.
“The stock position of active partial equity funds decreased to 85.6% from 86.9% in the previous quarter, still higher than the level in the first three quarters of 2021, in which the A-share position decreased from 80.0% to 79.0%.” For the fund’s position in the first quarter, China International Capital Corporation Limited(601995) analysis said that its structural configuration showed five characteristics: the shareholding concentration of leading companies continued to decline. The heavy positions on the main board and Kechuang board increased slightly, and the positions on the gem decreased slightly. Increase positions in banking, medicine and industry, maintain steady growth, and reduce positions in some manufacturing growth and consumption sectors. The shareholding concentration of popular tracks decreased slightly, and innovative drugs, photovoltaic wind power and semiconductors increased their positions. The position of specialized special new theme increased slightly, and the digital economy decreased significantly.
In terms of individual stocks, the data show that the number of funds holding Contemporary Amperex Technology Co.Limited(300750) at the end of the first quarter was 1914, ranking first among individual stocks. The fund holds 286 million shares of Contemporary Amperex Technology Co.Limited(300750) with a total market value of 146.7 billion yuan. At the end of the first quarter, the number of funds holding Kweichow Moutai Co.Ltd(600519) was 1788, ranking second. The fund holds Kweichow Moutai Co.Ltd(600519) shares totaling 937852 million shares, with a total market value of 161.2 billion yuan. In addition, the number of funds holding China Merchants Bank Co.Ltd(600036) , Longi Green Energy Technology Co.Ltd(601012) , Wuxi Apptec Co.Ltd(603259) , and China stock market news has also reached more than 700.
It is worth noting that some star fund managers have made certain adjustments to their product positions. For example, Ping An Bank Co.Ltd(000001) withdrew from the top ten positions in the selected mixed positions of e fund blue chips managed by Zhang Kun, while meituan-w entered the top ten positions. In addition, Zhang Kun reduced his holdings of Kweichow Moutai Co.Ltd(600519) , Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) , but increased his positions of Wuliangye Yibin Co.Ltd(000858) and Luzhou Laojiao Co.Ltd(000568) . In the China EU healthcare positions managed by Glenn, Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) withdrew from the top ten and Chongqing Zhifei Biological Products Co.Ltd(300122) entered the top ten. However, the number of shares held by Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) has not changed among the top ten heavyweight stocks of China Europe medical innovation stocks under her. In addition, in the first quarter of the fund, Glenn also added positions in Wuxi Apptec Co.Ltd(603259) , Aier Eye Hospital Group Co.Ltd(300015) , Topchoice Medical Co.Inc(600763) , Hangzhou Tigermed Consulting Co.Ltd(300347) and other stocks. Among the positions of Xingquan Herun managed by Xie Zhiyu, Wanhua Chemical Group Co.Ltd(600309) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) withdrew from the top ten, and Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Meihua Holdings Group Co.Ltd(600873) entered the top ten. GF Liu Gesong’s allocation direction in the first quarter was dominated by manufacturing stocks such as photovoltaic, power cells, new chemical materials and chips. While Fuguo Tianhui managed by Zhu Shaoxing continued to increase the number of positions in seven stocks in the first quarter, including Kweichow Moutai Co.Ltd(600519) , Contemporary Amperex Technology Co.Limited(300750) , Wuliangye Yibin Co.Ltd(000858) , Luxshare Precision Industry Co.Ltd(002475) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , and Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) .
China International Capital Corporation Limited(601995) believes that combined with the latest positions of public funds, the overall positions of institutions have not changed significantly in the first quarter, and the positions of some popular tracks are still not low. We still need to pay attention to the negative feedback impact of capital brought by market adjustment, while the positions of undervalued traditional industries have increased, but the overall position is still in a low allocation state, and there is no obvious phenomenon of transaction congestion.
fund managers are collectively bullish on the future
From the perspective of income, the performance of public funds in the first quarter was poor, and the withdrawal of equity products was more obvious. According to statistics, as of the end of the first quarter, 1790 of the 1850 partial equity hybrid funds had negative returns during the year; Of the 502 equity funds, 487 had negative returns during the year; Among the 1519 flexible allocation funds, 1476 had negative returns during the year. The proportion of negative earnings of the above three types of products in the first quarter exceeded 90%.
However, fund managers still have a positive attitude towards the future market. From the end of bad expectations to low-level valuations, many fund managers have “shouted” in the first quarterly report to express their confidence in the future development of the market.
“If we focus on a longer time dimension, there is no point in being overly pessimistic about the market. Now is the time for equity investors to bear fluctuations and take risks skillfully.” Zhu Shaoxing, a fund manager of Wells Fargo, said that the beneficial aspect is that in the core assets, the early share price of a considerable part of high-quality targets has retreated significantly, and the valuation attraction has increased significantly.
GF fund manager Liu Gesong also believes that with the convening of the financial committee meeting in the first quarter, there has been an obvious bottom feature in the market. From a medium and long-term perspective, we are not pessimistic about the future capital market. The market decline in the first quarter was a response to the superposition of multiple negative factors, which fully reflected most of the negative expectations. Considering from the perspective of industrial development and medium and long-term investment, there are many industries with investment value in the current A-share market. I hope fund investors can be patient.
Liu Yanchun, manager of Jingshun Great Wall Fund, said that although there are still many short, medium and long-term factors, the valuation level at this stage is likely to reflect these potential risks to a large extent.
As long as the capability of the enterprise has not changed, the change of the external environment is only a periodic disturbance, which has little impact on the reasonable pricing of the company. Compared with the growth, profitability and valuation level of global excellent companies, many high-quality listed companies in China have been very attractive at this stage. As the external environment returns to normal, stock pricing will eventually rise to a reasonable level.
Li Xiaoxing, the manager of Yinhua Fund, judged that in the short term, the overall valuation of A-Shares and some high-quality targets is at the historical average or even low position, and the price performance ratio of shares and bonds is below the average and at the position of negative double standard deviation. From a historical point of view, it has been in a relatively attractive stage. According to its judgment, as long as the company’s basic earnings per share do not significantly lower, there is not much room for further decline behind the market valuation. The valuation contraction of the market is coming to an end.
For the pharmaceutical industry, China Europe Fund Manager Glenn believes that with the gradual promotion of overseas clinical, it is expected that Chinese innovative products will gradually enter the harvest period overseas. At the same time, China’s innovative drug service enterprises have gradually formed industrial clusters with global competitiveness and reached the global leading level in some subdivided fields. In addition, we believe that the competitiveness of relevant service providers is more reflected in the technology and management ability of the platform, and the market share of Longtou enterprises will continue to improve and maintain its high prosperity.
In the field of consumption, Hu Xinwei, fund manager of huitianfu, said that he continued to be optimistic about investment opportunities in China’s consumer industry. In his opinion, the overall performance of Chinese consumption in the first quarter of 2022 was stable. In January and February, thanks to better epidemic control, China’s consumption recovered significantly. From mid to late March, with the spread of the epidemic in many places, China’s consumption is expected to be greatly affected in the short term. However, short-term factors do not affect the potential for sustained and steady growth of China’s consumer industry, let alone the general trend of continuous upgrading of consumption.
