In this matter, no fund manager can escape the eyes of fof fund experts.
in the A-share market, funds are gradually out of the freezing point, fund issuance is on the right, and it is the bottom time to pick and buy funds! There are more stocks with the help of funds, and more funds with fof to guide the way. Up to now, the number of fund products is as high as 9500. At a time when the selection of funds is comparable to the selection of stocks and even the purchase of funds has become a “blind box”, the fof that helps investors select funds has gradually become a popular variety in the market. So what is the core of fund selection
In the interview, the Chinese reporter of securities times · securities firm found that the core competence circle and industries of fund managers and fund managers have become the core key of base selection. This issue of star fund launched a special report on fof fund, specially invited to interview five Mingxing fof experts who are good at base selection in the whole market, and decrypted the core details of “countless readers” and “observing faces and colors” in the base selection process for investors.
Interviewee:
Yang Zhe, general manager of asset allocation Department of GF fund and manager of fof fund
Gao Ying, pension investment director of Ping An fund and fof fund manager
Xu liming, director of asset allocation Department of Huaxia Fund and manager of fof fund
Cai min, fof fund manager of Great Wall Fund
Guojun asset management fof Fund Manager Gao Chen
public offering boss leaves, does “heavy position base” stay or sell
securities times · China Securities reporter: recently, a star fund manager resigned. The fund he managed is your heavy base. What do you think of this?
Ping An fund Gao Ying: if the fund manager of the heavy position base leaves, we will certainly make a new investigation process. Generally, the fund managers of our heavy position base follow closely. It is unlikely that the fund manager will leave suddenly without any news in advance. Generally, they will be aware of it in advance and make some position adjustment according to the prediction.
For example, if I add two fund managers to the fund product, I will suddenly announce that another fund manager has joined the fund product observation stage. At the same time, combined with the style of the market, I must sell it not because I change a fund manager, but to observe whether the style of his successor is consistent with my personal judgment, including whether the successor matches the current style of the market, and there may be some changes. Usually, we maintain good information communication with the industry, because we have many peers and a large circle of friends.
securities times · China Securities reporter: do you pay high attention to the information about the stability of fund managers? Will the factors of fund managers’ resignation affect the operation?
GF Yang zhe: we will pay close attention to and follow up the fund managers and investment research teams of key funds. If the fund manager leaves or changes, we will conduct a comprehensive evaluation in combination with the fund’s investment strategy, investment objectives and company team cooperation at the first time. If there is an adverse impact on the fund style and performance continuity, we will timely optimize and replace the fund, To ensure that the investment objectives and strategies at the fof level do not deviate.
The fund manager and investment research team of key funds will keep close attention and follow up. If the fund manager leaves or changes, we will conduct a comprehensive evaluation at the first time in combination with the fund’s investment strategy, investment objectives and the company’s team cooperation. If there is an adverse impact on the fund style and performance continuity, we will timely optimize and replace the fund, To ensure that the investment objectives and strategies at the fof level do not deviate.
Great Wall Fund Cai Min: excellent and qualified fund managers are scarce. If you prefer to invest in active funds, fund managers are more important variables. I also focus on the relevant information of fund managers, especially turnover changes or other stability indicators.
one hundred times a year, research fund managers pay attention to the consistency of words and deeds
securities times · China Securities reporter: as a fof fund manager, how do you investigate fund managers and how many times a year?
GF fund Yang zhe: our research on the fund includes not only the fund level, but also the fund manager, investment research team and fund company level. We hope to judge the style of the fund, the stability and continuity of performance, the ability circle of the fund manager, the source of excess return, the ability of withdrawal control and other key issues through comprehensive and in-depth research, so as to assist us in making investment decisions. We conduct research every week, hundreds of times a year, both on-site and online. Affected by the epidemic in the past two years, there have been more online meetings. After on-site and online communication, the team will discuss and study the research video and audio and researcher research minutes.
Huaxia Fund Xu Liming: all fund managers with long-term stable and excellent performance must have unique understanding and understanding of investment. I investigate fund managers to understand the integrity of each other’s investment framework and strive to understand the evolution path of investment framework. Of course, I also need to verify the style characteristics of fund managers. Before research, I usually judge the style characteristics of a fund manager through the public disclosure of fund information. The purpose of the investigation is only to re verify these judgments.
As a fof manager, researching fund managers is an important part of my work. I survey about 100 fund managers every year. There are those that have been investigated in the early stage and new fund managers. If I have the opportunity to conduct multiple surveys on the same fund manager, I will compare the changes in their statements in different surveys to fully understand the fund manager.
Guojun asset management Gao Chen: with the development of fof products in recent two years, the fund research work has been smoother than before. More fund companies have begun to pay attention to the communication between fund managers and fof institutions, and gradually standardize and open this process, so that investors have more opportunities to fully understand fund managers. In the past year, we have recorded more than 200 surveys, covering about 70 equity and fixed income fund managers.
securities times · China Securities reporter: what characteristics of fund managers do you value more and how do you evaluate the style and historical performance of fund managers?
Ping An fund Gao Ying: if I bought a fund because its fund manager has some core abilities, for example, we know that many fund managers have their own ability circle in stock selection, and some fund managers may have very advantageous leading ability in some industries or styles.
If the fund manager deviates from the core logic I chose him at the beginning and the core competence circle he is good at, I will make some adjustments to the funds he manages. Of course, it is not necessarily a bad thing to deviate from his core competence circle, because I have my own reason for configuration. If his investment operation starts to converge with the style and ability circle of other fund managers, I don’t think it’s necessary to buy too much on this type of fund manager. I may reduce some operations on the platform. I’ll pay more attention to these.
Guojun asset management Gao Chen: I pay more attention to whether the fund manager has a perfect and mature investment framework, a clear investment logic, and the ability to truly realize his investment planning and adapt to market changes. From the perspective of fof investment, I hope the selected fund manager is excellent and the performance is stable and sustainable; On this basis, if the investment perspective of the fund manager is relatively independent of the mainstream view, it can provide diversified choices for the portfolio.
For the evaluation of the historical performance of fund managers, quantitative performance evaluation and attribution analysis will be carried out, and the fund managers will also be invited to review the gains and losses of past investment operations in the form of interviews.
Great Wall Fund Cai Min: fund’s historical performance is an important inspection item, but more important is the long-term investment methodology behind the performance, to see whether the investment strategy is self consistent, stable, clear and understandable, the degree of implementation of the methodology and the self-discipline of fund managers at the high and low points of the market cycle, and whether their words and deeds are consistent.
age is related to the sensitivity of stock selection. Does the base selection also depend on age
securities times · China Securities reporter: do young fund managers and older fund managers have a preference for choice?
GF Yang zhe: I have no preference in this regard. When conducting fund research, we will pay attention to the impact of fund managers’ experience on product performance and investment habits. When combining configurations, we will take these analysis results as one of the reference factors.
Practical experience and market experience are very important for investment. Generally speaking, senior fund managers will have stronger awareness of portfolio risk control and richer research experience in different fields. However, we can often see that many young fund managers are equally excellent and diligent, and are more sensitive to new things, so they will show different characteristics.
Ping An fund Gao Ying: some people like to invest in Mesozoic fund managers, fund managers with a very long career, or veterans with a very large scale of fund management. From my preference, it may not be in line with my preference. This type of fund manager accounts for a small proportion of my positions.
Especially young fund managers also account for a small proportion of my positions, but I can’t rule out buying more in a certain period of time, because this kind of young fund managers are more sensitive to new things, often in line with the short-term style of a certain stage and with distinctive industry characteristics, but it’s difficult to take these fund managers as my core positions. However, the products managed by many young fund managers may be very flexible, With their gradual growth, the attraction of configuration is also increasing.
Guojun asset management Gao Chen: has no preference for age, but from the current screening system, it is hoped that fund managers will have a longer period of observable performance, so fund managers with relatively rich investment experience will have an advantage. The outstanding fund managers emerging in recent years are also becoming younger and better at investing in emerging growth fields. We are also very concerned about this phenomenon. In the specific investment, we will plan and choose according to the performance of fund managers and the needs of portfolio allocation, and will not take age as a factor to consider.
Great Wall Fund Cai Min: compared with young fund managers, fund managers who have experienced a complete bull and bear cycle have their investment methodology tested by the market and their investment mentality will be more mature and stable. Therefore, we prefer fund managers with a long verifiable history.
fund manager’s performance gets better after the style drift. Buy it or not
securities times · China reporter of securities firm: some fund managers’ performance has improved after their style drifted. For example, a media fund was finally made into a new energy fund. How to evaluate the performance of such funds? Will fof buy this type of fund?
Ping An fund Gao Ying: if this happens, I will cut it off. There is no need to match it. No matter what its performance is, it is not in line with my original intention of investing in it. And we don’t need to choose a fund that needs to switch from industry a theme to industry B theme. I can also find a suitable fund in the authentic industry B theme fund.
Huaxia Fund Xu Liming: fund managers with stable and identifiable style provide decision-making basis for fof asset allocation. However, some fund managers lack regularity, foresight and logic in the change of style characteristics. I call this kind of unpredictable style change style drift. It is the performance of incomplete investment framework and immature investment concept of fund managers. He will make it more difficult to select and configure the style at the fof level, which will affect the investment performance. Therefore, I will try to avoid it when building fof combination. Even if their short-term performance is better, I don’t think this performance is sustainable.
Great Wall Fund Cai Min: for active funds, we still value the maturity of fund managers’ investment strategy, the stability of investment style, self-discipline and the credibility of consistency between words and deeds in extreme market conditions. No matter how the performance is, in our opinion, style drift weakens the above indicators, and style drift will reduce the predictability of fund managers’ operation and disturb the implementation of portfolio investment ideas.
Guojun asset management Gao Chen: if the style of the funds heavily held by fof drifts, the probability is a headache for fof managers. Excessive allocation of such funds will make it difficult to estimate the portfolio layout, which means losing control of the portfolio; And when evaluating the advantages and disadvantages of the fund, it usually won’t get good results, because the style drift will generally involve the fields where the fund manager is not good at. Even if there is a beta contribution of the industry or style, the excess return of individual stock selection is usually low.
But the point I want to emphasize here is that we should not over define “style drift”, and we need to leave space for fund managers to actively manage. Many fund managers who are good at “consumption”, “new energy” and other fields have diversified positions, which can not be regarded as style drift, but an embodiment of investment ability. Through a lot of research, we found that many excellent fund managers choose stocks in areas that deviate from their own expertise, most of which have their own logic and reasons: first, with the deepening of investment research, they can reasonably expand to upstream and downstream areas to explore investment opportunities, or find evidence cases outside the industry under similar business models; Second, they are aware of the large industrial risks in their field of expertise and seek portfolio balance and optimization.
who is the bottom position and who is the auxiliary position? How to allocate positions to different fund managers
securities times · China Securities reporter: now the fund market is beginning to recover. Let’s talk about the current overall base selection strategy of fof products. What is the core factor of doing a good job in fof investment?
Guangfa fund Yang zhe: so far, the market is relatively suitable for the base selection strategy with both attack and Defense this year: on the one hand, the market still faces many internal and external uncertain factors, so it is necessary to select some defensive varieties for configuration to enhance the anti risk ability of the portfolio; On the other hand, with the correction of the market, various bad factors have been gradually eliminated or have been reflected in the market. When the valuation gradually returns to a reasonable or undervalued position, some offensive varieties can be appropriately configured to enhance the income elasticity of the portfolio.
The core of fof investment is to do a good job in asset allocation and fund selection. Neither of these is easy. At the asset allocation level, fund managers enhance the adaptability of the portfolio to different market environments and improve the anti risk ability and cost performance of the portfolio by allocating multiple assets such as stocks and bonds. In terms of fund selection, it is necessary to enhance returns by optimizing funds, reduce fluctuations with appropriate decentralized allocation, and improve the stability and certainty of investment. As a fof fund manager, we strive to achieve excellence in asset allocation and fund selection, so as to create a better holding experience for investors.
Ping An fund Gao Ying: we surveyed many fund managers this year. Around 3000, many fund managers are optimistic about the future market. We think this is an opportunity. Although the market is still in shock, the characteristics of this year will be very different from last year. That is, many investment opportunities last year were beta market in the nature of the industry. Due to the prosperity of the industry, The share price is prosperous, but after the market falls this year, the funds that can really run out are those with alpha ability. It is to observe which fund managers have the ability to select stocks. This year is the structural market of alpha. This year, I will put more opportunities on balanced fund products, mainly balanced and actively managed funds, and auxiliary positions will buy some industry theme funds.
Huaxia Fund Xu Liming: I build fof portfolio through four steps of “strategic asset allocation – Tactical Asset Allocation – bottom fund selection – risk management and error correction”. “Strategic asset allocation” refers to the process of evaluating the investment cost performance of major categories of assets, so as to determine the proportion of different categories of assets in the overall assets of the portfolio. “Tactical asset allocation” refers to the process of evaluating the assets of different styles, industries, sectors and tracks and tilting towards the styles that I think are likely to dominate. “Bottom fund selection” refers to the process of selecting funds with long-term stable performance to form fof portfolio in specific style categories. “Risk management and correction” refers to the process of observing and reflecting on the actual operation effect of fof portfolio at any time, and timely adjusting in case of problems.
Great Wall Fund Cai Min: in terms of base selection strategy, based on the consideration of transparency, consistency of style, friction cost of investment and high and low rate, we generally prefer index funds, especially ETFs In general, the base selection strategy is to select industry funds with high barriers, reasonable low valuation and low current market attention. Doing a good job in fof investment is no different from other investments: on the one hand, it is to ensure the depth of research, on the other hand, it is to maintain patience and courage in investment practice.
