Once the performance champion, after the baptism of this wave of market, often falls into the altar, and fund managers who can escape the “champion curse” are particularly rare.
Not only the champion base, the performance of most equity funds has been unsatisfactory since this year. As of the end of April, the performance of all actively managed equity funds has increased by less than 10%.
Affected by multiple adverse factors, under the background of market adjustment since the beginning of the year, due to the drastic adjustment of the “group” sector in the early stage, the net value of star funds has shrunk significantly, and many new funders even suffered considerable losses. The equity fund of “good hair but bad work” has taught a vivid and profound lesson to investors who buy blindly and fail to stop profits in time.
So, what about the performance of fund managers who used to bear the halo of “champions” of actively managed funds? How should the industry solve the fundamental problem of “making money from funds and not making money from the people”?
can’t escape the “champion curse”
Cui Chenlong is the “champion” in the fund industry in 2021. The Qianhai open source utility and Qianhai open source new economy a under his management doubled their performance last year, ranking among the top two in the fund yield in 2021. In 2021, Qianhai open source fund became a big winner in the market. With excellent performance, Cui Chenlong attracted more than 40 billion yuan in a year.
In 2022, the performance of star fund manager Cui Chenlong was poor. As of May 19, all eight funds under his management had negative returns, and the net value decreased by more than 15%.
According to public information, after joining Qianhai open source fund in August 2017, Cui Chenlong was a researcher of the equity investment headquarters and a fund manager of stock securities investment fund in Qianhai open source public utility industry since July 20, 2020. After only one year and 164 days as a fund manager, he won the fund performance champion in 2021.
In 2021, the good performance of Qianhai Kaiyuan public utility stocks largely benefited from large-scale bets on the new energy sector. Cui Chenlong is a doctor jointly trained by Northwestern University and Nanyang University of technology in Singapore, majoring in materials science. His research topics cover carbon materials (graphene, carbon nanotubes, etc.), nano materials, and applications include electrochemistry, lithium batteries, selective catalysis, self-healing coatings and other fields. His academic direction may create certain conditions for Cui Chenlong to participate in this year’s investment in new energy and new energy vehicles.
Founded in March 2018, Qianhai Kaiyuan public utility stock fund issued about 249 million shares. After its establishment, due to its mediocre performance, the fund shares continued to shrink, leaving only 13 million until the end of the first half of 2020, which was once the object of neglect in the market,
In July 2020, after Cui Chenlong took over the product, the net value of the fund increased by leaps and bounds. In particular, the performance in 2021 was quite bright, with an annual yield of 119.42%, 95.91 percentage points better than the benchmark, and the highest unit net value rose to 3.7487 yuan. The bright performance attracted many investors to subscribe enthusiastically. By the end of 2021, the total share of Qianhai Kaiyuan public utility stock soared to 7.082 billion, and the net asset value reached 25.816 billion yuan.
However, in the face of the market crash in 2022, the anti pullback ability of Qianhai Kaiyuan public utility stocks is poor, and the performance ranking has decreased significantly. As of May 19, 2022, the unit net value of the fund fell to 2.8698 yuan, with a loss of 21.28% during the year, ranking 391 / 734 in the same category.
In addition, as the expansion of scale lags behind the performance, a large number of Jimin buy at a high level, which leads to a loss of 5.548 billion yuan in the first quarter of 2022, exceeding the profit created in 2021 according to the previous scale and 1.5% management rate.
Before Cui Chenlong burst into flames, Han Guangzhe, the Golden Eagle Fund, was the most outstanding performer in the first half of 2021. At that time, the Golden Eagle national emerging fund under its management won the “half-way champion” of public funds with a performance return of 53.15%, and Han Guangzhe also entered the vision of investors. By the end of the third quarter of 2021, the share of the fund had increased by more than 100 million, which shows that investors were “flocking” to it at that time.
According to public information, Han Guangzhe successively worked in many fund companies such as Huaxia Fund and Yinhua Fund, and joined Jinying fund in June 2019. A month later, in July 2019, Han Guangzhe took over the Golden Eagle reform dividend mixed fund and began his career in the Golden Eagle Fund.
In March 2021, Han Guangzhe took over the Golden Eagle national emerging hybrid from Chen Li. When he took over, the total scale of the fund was 49 million and the total assets were 112 million yuan.
After taking over the Golden Eagle national emerging hybrid, Han Guangzhe began to gradually exchange the positions of the fund, transfer out some of the original biomedicine and take heavy positions in new energy stocks. According to the data at the end of the second quarter of 2021, nine of the top ten heavyweight stocks of Jinying national emerging hybrid are new energy stocks, including Contemporary Amperex Technology Co.Limited(300750) , Sungrow Power Supply Co.Ltd(300274) , etc.
Catch up with the “tuyere” of new energy in 2021. In the first half of 2021, the net value of the fund increased by 53.15%. Led the active equity fund and became the champion of the fund in the first half of 2021. In addition, in 2021, the fund increased by 79.41% and ranked among the top 10 in the same category.
At that time, Han Guangzhe also said in the 2021 fund semi annual report, “My investment philosophy is to look for investment opportunities in medium and long-term industrial trends based on fundamental research. In terms of expansion, fundamental research covers a wide range, and I subdivide it into value investment and scientific investment. Value investment is what people often say about the basic value (or pricing) of a company Research, like Warren Buffett, find a good company with thick snow in Changpo, and obtain the income brought by the continuous growth of the company through long-term holding; Within the framework of my investment logic, scientific investment focuses on its own emotional management and realizes its own understanding of the world. It is more rational, objective and long-term, such as believing in the objective law of economic development, the law of industrial development cycle, the company’s products and technology, and less perceptual, subjective and short-term, such as human conformity (blind belief, self doubt), greed, fear and other psychological characteristics, Stick to doing the right thing for a long time. “
After Han Guangzhe managed the Golden Eagle national emerging hybrid to reverse the situation and greatly increase the scale, the Golden Eagle Fund naturally attached great importance to it. In 2022, Han Guangzhe was not only appointed as the fund manager of the new fund, but also tried to replicate his successful experience in the emerging hybrid of Golden Eagle nation.
However, it is regrettable that Han Guangzhe has also been unable to escape the so-called “champion curse” since 2022. As of May 19, all the nine funds under its management had negative returns, and most of their net values had decreased by more than 20%.
“partial subject” or main cause
So why do star fund managers repeatedly perform the “champion curse”?
Many people blame the sharp decline in the market for the current dilemma, but the fact is more than that.
In addition to the market environment, fund managers themselves also have a certain dislocation at the allocation level for a long time, exacerbating the dilemma of today’s industry.
In fact, for ordinary investors, the investment fund is not to pursue the ultimate high yield and bear high risks. Its ultimate demand should be: fair income, outstanding experience and stable style. However, “there are very few real whole market funds in the market. Although the most successful funds in the past 5-10 years are consumer funds and new energy funds, their performance can not be continued. No industry has been rising because the total social resources are limited.” For the general loss of Jimin investment since this year, an insider admitted.
In other words, at the level of fund supply, the majority of track funds and racing belt fund managers have exacerbated the overall weak performance of the fund and affected the experience of Jimin. However, at the demand level, in recent years when the scale of public funds has continued to grow, a large number of new funders have entered the market. What is really suitable for these groups is the relatively more stable whole market funds.
Take Cui Chenlong as an example. In the impression of the industry, Cui Chenlong is a “racetrack player” who prefers new energy. According to the 2021 annual report data from the 2021 annual report, the top ten heavy warehouse shares of a pioneer sea open source utility include Byd Company Limited(002594) however, most of them belong to the core track stocks with large increase in 2021. However, in the general decline market in the first quarter of 2022, the “cluster” pattern of new energy collapsed and the stock price continued to fall, resulting in considerable losses to Jimin, who bought at a high level in 2021.
As an industry highly related to the performance of the secondary market, in recent years, the so-called “Star” public funds and “Star” fund managers can also be described as the “King flag of changes in the city”.
From 2019 to 2020, the value style and growth style took turns, making Zhang Kun, Liu Yanchun, Liu Gesong and other “Star” fund managers. In 2021, the value style “flameout”, Zhang Kun and Liu Yanchun fell from the altar. However, due to the continuous performance of the new energy sector, Cui Chenlong, who has only worked as a fund manager for about two years, became the yield champion of that year. In addition, during this period, there are intermittent performances in the pharmaceutical sector from 2020 to 2021, which also created “100 billion top flow fund managers” like Glenn.
However, in 2022, the market style changed greatly, consumption and medicine continued to be depressed, and new energy gradually “stalled”, resulting in significant adjustments in value style and growth style funds.
Some industry analysts said that the relatively loose liquidity and institutionalization trend at that time was followed by the so-called “fund group”, which is understood as the “Heroes think alike” among institutions, because with the increasingly mature market and the improvement of the voice of head institutions in pricing, the overvalued value of high-quality individual stocks may become normal. However, some people have questioned that the investment style of some funds is too concentrated. When the market is good, they will become winners, and when the market is bad, they will become complete losers.
high quality development at the right time
On the afternoon of April 29, the Political Bureau of the CPC Central Committee conducted the 38th collective study on standardizing and guiding the healthy development of Chinese capital according to law. When presiding over the study, general secretary Xi Jinping of the CPC Central Committee stressed that capital is an important factor of production in the socialist market economy. Standardizing and guiding capital development under the conditions of the socialist market economy is not only a major economic issue, but also a major political issue, a major practical issue and a major theoretical issue. It is related to adhering to the basic socialist economic system and the basic national policy of reform and opening up, It is related to high-quality development and common prosperity, national security and social stability. We must deepen our understanding of China’s various types of capital and their role in the new era, standardize and guide the healthy development of capital, and give full play to its positive role as an important factor of production.
At present, China’s economy has entered a stage of high-quality development and needs a capital market with depth, breadth and prosperity; The rapid growth of residents’ wealth and the continuous release of asset allocation demand also need a more stable, standardized and resilient equity market. Public funds are one of the important institutional investors in China’s capital market.
In addition, as a public financial tool with the lowest threshold, public funds are also an important way for the public to share the growth dividends of the capital market and realize the long-term preservation and appreciation of wealth. According to the 2021 report on Investor Service and protection of securities companies issued by China Securities Association, by the end of 2021, China’s fund investors had exceeded 720 million.
“Entrusted by others, managing money on behalf of customers” is the origin of public funds. Taking the interests of investors as the core should become the “creed” of the public fund industry. On the premise of law-abiding and compliance, we have the courage to explore and innovate, provide rich types of financial tools for ordinary people, and constantly popularize the concept of financial management in the society, which also highlights the inclusive financial characteristics of public funds.
However, objectively speaking, with the rapid development of the industry in recent years, the problem of “funds making money and the people not making money”; The value orientation of “only scale theory” and “only ranking theory” leads to high homogeneity of products and lack of innovation; Pay more attention to raising than management and sales than investment and research; Trading behavior problems such as “holding a group for warmth” and “watching the sky for dinner” have existed for a long time.
In this context, on May 13, the CSRC issued the latest institutional supervision circular entitled “optimizing the registration mechanism of public funds and promoting the high-quality development of the industry”. The circular clearly stated that it would give full play to the guiding role of product registration, highlight the regulatory guidance of supporting the advantages and limiting the disadvantages, and further optimize the fund registration mechanism.
It is clear that fund companies that meet the six situations of strong management ability, strong ability to serve investors, strong awareness of management ability and scale adaptation, strong innovation ability, strong compliance risk control ability and strong sense of social responsibility will take incentive measures such as giving priority to pilot innovative products or businesses.
At the same time, restrictive measures shall be taken for fund companies that meet the six situations of weak management ability, weak long-term investment concept, weak pricing ability, weak ability to serve investors, weak product development ability, weak reputation risk management ability and other three types of problems.
Some people in the public offering industry pointed out that the circular is the detailed implementation and continuation of the fund audit end. The roadmap for the high-quality development of the public fund industry is given. From the perspective of products, on the one hand, it may make fund companies carefully report new funds, and the phenomenon of disorderly expansion in the past will converge; On the other hand, some innovative products that are explicitly encouraged will be gradually implemented.
From the perspective of fund companies, the richer and clearer indicators of classified supervision in the circular will also urge fund companies to improve the core competence of investment and research, strengthen the systematic, long-term and platform construction of investment and research teams, strengthen product and business innovation, and practice social responsibility, so as to truly achieve the same growth and development of the company and industry, enhance and make progress with the interests of investors, Contribute professional strength to a better life for thousands of families.
