The configuration list of fof four seasons report is released.
Fof products are favored by investors with small pullback and stable income. 2021 is a big year for the fof market. By the end of 2021, up to 93.61% of fof has achieved positive returns. Looking at the extended cycle, 95.53% of fof products have enjoyed red returns since their establishment. According to the data of fof’s four seasons report, fof has increased the allocation proportion of low-risk funds as a whole, such as reducing the allocation proportion of equity funds as a whole, increasing the allocation intensity of theme funds such as finance, real estate and consumption, and significantly increasing its holdings of medium and long-term pure debt funds.
Even so, the decline of A-Shares at the beginning of 2022 still led to the decline of 95% of fof products, and the unit net value of five fof products fell by more than 7%. In the face of the sharp increase in the scale of fof and the increase in the volatility of A-share market, how to control the pullback has become a test faced by many fof fund managers.
professional buyers “hold together” these funds
The four seasons report has been disclosed. By the end of 2021, the number of fof products had increased by 94 (combined share) compared with the end of 2020 to 239, and the scale of net asset value had reached 219.541 billion yuan, an increase of 141% year-on-year in 2020.
Fof products are favored by investors for their small pullback and stable income. The data show that 93.61% of fof products achieved positive income in 2021. Looking at the extended cycle, 95.53% of fof products have enjoyed red income since its establishment.
Fof, known as a professional buyer, screens funds from a professional perspective to help investors optimize the investment effect of funds. Which funds were favored by fof in the fourth quarter? According to the data, by the end of 2021, the five equity funds with the largest number held by fof were Zhou Xuejun’s Haifutong reform drive, Sun Bin’s Fuguo value advantage, Yan Yao’s ICBC Credit Suisse new finance a, Feng Mingyuan’s Cinda Aoyin new energy industry, and GF multi factor jointly managed by Tang Xiaobin and Yang Dong.
By the end of 2021, Haifutong reform driven fund was purchased by 27 public offering fofs, which is the equity fund with the largest number of purchases by fof for two consecutive quarters. Specifically, huitianfu focused on the classic and held 12 fofs such as a and Ping An pension 2035a in one year. In the fourth quarter, huitianfu chose to increase the position of Haifutong reform driven fund. Fof holds 766 million yuan, accounting for 4.37% of the total scale of Haifutong reform driven fund. Haifutong reform driven fund has achieved a return of 27.81% in recent one year and 321.73% in recent three years. Fund manager Zhou Xuejun is famous for his balanced investment style.
In contrast, Wells Fargo value advantage funds held by only 10 fofs in the third quarter of last year were favored by fofs in the fourth quarter, with a total of 18 fofs increasing their positions. By the end of 2021, the number of Wells Fargo value advantage funds held had reached 20, second only to Haifutong reform driven fund. Wells Fargo value advantage fund is managed by Sun Bin, a fund manager who adheres to the “Fundamentals enhancement” strategy, and has maintained high returns for three consecutive years. In the fourth quarter, the fund mainly increased the allocation proportion of consumer electronics, food and beverage, real estate and mining, and reduced the allocation of new electricity and medicine.
Hua’an Anxin consumer service a, ICBC Credit Suisse financial real estate C and GF trend optimization a all obtained no less than 5 additional positions of fofs. It can be seen that fof has increased the allocation of theme funds such as finance, real estate and consumption as a whole.
increase the allocation proportion of low-risk funds in the fourth quarter
In addition to increasing the allocation intensity of undervalued theme funds, fof also strengthened the allocation proportion of low-risk funds by significantly increasing the allocation proportion of medium and long-term pure debt funds and overall equity funds in the fourth quarter.
The five medium and long-term pure bond funds with the largest increase in the share of position change of fof in the fourth quarter were bocom pure bond AB, BOCOM Yulong pure bond a, Xingquan Wentai a, ICBC Credit Suisse pure bond a and e-fund credit bond a. the above funds performed steadily, with a return of 1.3% ~ 1.8% in the fourth quarter.
For equity funds, the overall position of fof in the fourth quarter tends to be reduced. For example, the theme funds with high prosperity in 2021 are mostly in the forefront of reduction.
From the perspective of equity funds in fof portfolio, low withdrawal funds are favored. According to the data, by the end of 2021, the top market value of fof equity funds were Haifutong alpha hedge a, GF multi factor and Haifutong reform driven, with the market value of positions of 1.163 billion yuan, 864 million yuan and 766 million yuan respectively. Haifutong alpha hedge a pointed out in the four seasons that on the basis of controlling the withdrawal, the fund tries to find suitable stock investment opportunities to earn absolute income. At the same time, the fund actively participates in the subscription of new shares to enhance the investment income. GF multi factor is an active equity fund with obvious increase of fof’s holdings in the third quarter. It is a typical “line drawing fund” with low volatility and low withdrawal.
After the sharp increase of scale, fof performed poorly in the beginning of the year
2021 is the year of fof product issuance. A total of 94 fof products have been established, raising a total of 119.486 billion yuan, which is a subdivision category with the most obvious growth among public funds.
China Merchants Securities Co.Ltd(600999) Ren Tong’s team said that the risk return characteristics of different types of fof funds show obvious differences. The low-risk annualized volatility represented by partial debt ordinary fof and robust pension risk fof mostly does not exceed 10%. In contrast, the annualized volatility of high-risk positioning products such as partial equity ordinary fof, active pension risk fof and pension date 2045 / 2050 fof mostly exceeds 10%, The annualized fluctuation of individual products exceeds 20%, while the risk return characteristics of medium risk positioning products such as balanced ordinary fof, balanced pension risk fof and pension date 2030 / 2035 / 2040 fof are between the other two types of products.
Fof market is also a new highland for public offering managers. At present, six of the top ten fof products were established in 2021. Some fund sources pointed out that the development of China’s fof industry is still in its infancy. With the expansion of residents’ wealth, the demand for financial management will gradually rise. Fof products have a better risk return ratio and can provide better holding experience for ordinary investors. However, the scale of fof increased sharply last year and the fluctuation of superimposed A-share market increased at the beginning of the year, How to control pullback has become a test faced by many fof fund managers.
From the perspective of fund investment types, fof products are mainly invested in flexible allocation funds, partial stock hybrid funds and medium and long-term pure debt funds. Among them, the number of flexible allocation funds is the largest, and the number of partial stock hybrid funds and medium and long-term pure debt funds are equal. Some fund sources pointed out that the market is generally not optimistic about the performance of the equity market in 2022. In addition, many equity funds with low withdrawal performance in the first three quarters continued to withdraw in the fourth quarter, which has a great impact on the net value of fof products. If fof funds want to maintain low withdrawal, the allocation requirements for equity funds have to be more strict.
Even though many fofs choose to adjust the allocation and proportion of equity portfolio in the fourth quarter to reduce the impact of A-share market fluctuations on their net worth, many fofs still face a significant pullback in 2022.
Data show that as of January 24, 95% of fof products have fallen since 2022, and the unit net value of five fof products has fallen by more than 7%. This year’s A-share market structure has undergone great changes compared with last year. Sun Lei, manager of Jinxin fund, told reporters that stable growth, wide currency and external water collection are the core concerns of the current market. These two points form a hedging effect. When the strong industry increased greatly last year, the overall difficulty of this year is greater. It is a better idea to find alpha in the strong industry.
