Huiquan Fund Liang Yongqiang: The probability of a long-term slow bull trend in A shares is getting higher and higher

On June 15, 2020, Huiquan Fund was officially established half a month after being approved. Liang Yongqiang, who resigned as the general manager of China Commercial Fund in 2018, and Yang Yu, who left as the managing director of Harvest Fund in 2020, returned to the public offering as the founding partner of this individual fund company.

In October 2020, with the addition of Meng Zhaoxia, the former general manager of Guolian An, the company formed an iron triangle with these three Nankai University alumni as the core. The appearance of two partners who have been the general managers of fund companies at the same time is quite rare in the industry. The three of them each have their own areas of expertise, which can complement each other and be closer to the partnership model of back-to-back mutual support, mutual trust and mutual integration.

On July 20, 2021, Huiquan's first public offering product, Huiquan Strategic Selection, was officially launched, and "active helm, quantitative escort" became the biggest eye-catching point of Huiquan's model. The initial offering of nearly 3.6 billion yuan also shows that the market has given this powerful team better expectations.

The company has made a more ideal start. On September 28, Huiquan Fund released the announcement of the sale of its second product, Huiquan Zhenzhiyuan, and like Huiquan Strategy Preferred, Liang Yongqiang is still the manager of the new fund.

Liang Yongqiang, a Ph.D. in economics from Nankai University, has 19 years of experience in the financial industry and is one of the rare general manager-level fund managers in the industry who has won multiple awards.

In the 14 years of the China Commercial Fund, Liang Yongqiang has been sought after and questioned.

In the more than three years since he left the public fund, he has never stopped thinking about investment and management.

Now starting again and starting the second career of general manager and fund manager, Liang Yongqiang pays more attention to the experience of the holder. He told reporters that in the past, asset management was more from the perspective of product providers, providing investors with products and investment capabilities, often considering more about the growth space of future investment directions, but ignoring customer experience. The bigger starting point of wealth management is to stand in the customer's point of view, think about what his needs are, and provide products that match him as much as possible, and consider the customer experience more.

Under the principle of maximizing the interests of holders, Liang Yongqiang's investment style, position concentration, drawdown control, turnover rate and other aspects have been iterated and evolved, evolving towards a more balanced and strict risk control state.

In addition, when it comes to his understanding of investment, he said that investment is actually a process of defining itself with the characteristics of the times, and it is a bridge between the present and the future.

On the last working day before the National Day, a reporter from China Fund News interviewed Liang Yongqiang. Whether it is his investment experience or the mental journey he has traveled in recent years, he is frank and honest. There are not only wonderful metaphors, but also profound investment insights and life wisdom.

The promoters each complement each other's strengths

Create an individual public offering that is closer to the standard partnership system

China Fund News: Please talk about the original intention and background of the establishment of Huiquan Fund.

Liang Yongqiang: After resigning as the general manager of China Commercial Fund in 2018, I originally planned to take a break for a while. Later, Yang Yu found me, on how to operate and build a new fund company, did a lot of in-depth exchanges, after communicating for nearly half a year, everyone on the industry's cognition, understanding and the company's business philosophy and other aspects have reached an agreement, in November 2018, I officially participated in the company's preparatory work.

Many shareholders of traditional fund companies belong to traditional industries, their understanding of the fund industry has a certain deviation, and many cognitions between shareholders and management are not too consistent, which often leads to corporate strategy and management not conforming to the development law of the industry. Fund companies initiated by professionals have no obstacles in the governance structure, and we can better play our accumulated experience based on our understanding of the industry. For example, Meng Zhaoxia, the current chairman of Huiquan Fund, was the deputy general manager of Fuguo Fund before, the general manager of Rongtong Fund and Guolian An Fund Company, her endowment is mainly in brand strategy, Yang Yu's specialty is quantitative investment, I mainly do active investment in China Commercial Fund before, professionally several people are more complementary, and have done management, can stand in the position of holders and companies to consider specific professional issues, can go forward back to back.

Now, from banks to securities companies, they are talking about wealth management, and the slow transformation from asset management (or investment management) to wealth management seems to be just a change of words, but the starting point is very different.

In the past, we said that asset management was more from the perspective of product providers, providing investors with products and investment capabilities, often considering more about the growth space of investment direction, but ignoring customer experience. The bigger starting point of wealth management is to stand in the customer's point of view, think about what his needs are, and provide products that match him as much as possible, and consider the customer experience more.

China Fund News: Compared with traditional public fund companies, what are the differences between individual public offerings?

Liang Yongqiang: Compared with traditional public offerings, the biggest difference between individual public offerings is in the composition of shareholders and corporate governance. The general manager of a traditional public fund company is similar to a professional manager, and it is very difficult to achieve long-term, while the individual fund company realizes the unity of the long-term interests of the company's shareholders and managers, and naturally puts the company's long-term development in the first place.

In terms of talent training and motivation, there is more room for individual public fundraising. Taking the talent incentive of Huiquan Fund as an example, the future will be divided into several levels: first, equity incentives, at present, the company has set up three equity incentive platforms, with a total of 15% equity, mainly for core team members to do incentives; second, performance-oriented incentives, not exactly the same as equity, similar to partnership dividend rights and operating dividends.

The asset management industry is a people-oriented industry, people are the core value of the company, and the partnership system is the main system of overseas mature asset management institutions. Of course, the partnership system of overseas institutions is not exactly the same as that of domestic equity-based joint-stock companies, and in overseas institutions, the role of shareholders is completely weakened, and it is more about the contribution of each person in the partnership process.

Domestic individual public offerings are moving closer to the standard partnership system of overseas institutions, and in this process, it is relatively easier for professionals with a deep understanding of the industry to be shareholders.

China Fund News: What kind of company do you want to build Huiquan into in the future? Are there any benchmarking companies?

Liang Yongqiang: This is something that our core founding partners have always been thinking about.

We always do it around our core competencies. At each stage, we will be based on our own endowments, as far as possible to do the best, through continuous accumulation, the formation of their own core investment management capabilities, the formation of the company's characteristics.

The origins of companies are different. Some individual fund companies are founders with a strong attraction, forming an organizational style around the founders that is equivalent to a core and satellite. Huiquan Fund is not the same, our three partners have their own strengths, like me and Mr. Meng have been the general manager of the fund company before, we hope to give full play to their respective advantages as much as possible, and truly reflect the back-to-back mutual support, mutual trust and mutual integration of the partnership system, so we naturally have a more partnership spirit.

In the future, Huiquan hopes to form its own style, which is a style that really integrates each partner and team owner, and Huiquan's style has traces of each employee, and each employee also has the traces of Huiquan.

Active, quantitative and fixed income are integrated

Three aspects to build active investment capabilities

China Fund News: Please talk about the current situation of Huiquan?

Liang Yongqiang: At present, the company has nearly 50 people, including nearly 20 investment and research personnel, and the entire business structure is relatively complete and complete. For example, on the investment side, there are three major sectors: active, quantitative and fixed income. I am mainly responsible for the initiative, Yang Yu is responsible for quantification, and Sun Haizhong is responsible for fixed income. Sun Haizhong has served in Ping An, Rongtong and Haifutong, and has been deeply engaged in the field of fixed income for more than ten years and has rich experience.

Why did we make important layouts in these sections in the first place? Asset management needs to be comprehensively considered at several levels such as asset allocation, industry selection, and individual stocks, and through the integration of active, quantitative and fixed income, a more objective and pertinent cognition and understanding of the whole market can be formed.

Although we are a new company, but in the team formation, investment research, marketing, middle and back office and other business leaders, are the industry understanding and experience in a more important position, I hope that through everyone's emphasis on professional and experience, in the process of providing products and services to the outside world, always put professionalism and customer experience in a more important position. This is also what the company has been considering from the time it was conceived to the present.

China Fund News reporter: What are the characteristics of Huiquan Fund in investment and research?

Liang Yongqiang: First, the deep integration of quantification and initiative. Yang Yu and I each have a relatively deep accumulation in the initiative and quantification, the company's investment research team, whether active or quantitative, all of us are learning, researching and discussing together, hoping to start from the thinking, there will be continuous reference and integration with each other.

Second, as a new company, we do not have a lot of staffing, so active researchers are not allocated according to each industry, but in the general direction. For example, based on the major directions of the market in the future, consumer medicine, technology, materials, partial cycle, strategy, etc., we will arrange special personnel to be responsible for overall and cross-industry research. Because the industry division was not so detailed at the beginning, the integration of active and quantitative was more in-depth, and the application of quantitative tools in active investment was increasing.

Third, from the perspective of the research process, after we understand the market and industry from a macro perspective, the detailed analysis of specific listed companies is more dependent on external research forces. Every once in a while, about a quarter or so, we would choose about two brokerage institutes for a reverse visit. We will stay in the institute all day, arrange about a dozen industries, and communicate more deeply with analysts in each industry, which is more efficient for both of us.

In summary, the integration of initiative and quantification, the allocation direction of researchers, and the relationship between mutual services with external research institutes are the places where we are more different from existing mature companies. It also has to do with the stage our company is at now, including our own allocation of time and energy.

China Fund News reporter: How to build active management capabilities? You were once a very good active fund manager in China, is equity investment the main direction of Huiquan Fund?

Liang Yongqiang: The core of active management ability is the ability to understand and recognize the team's social evolution. Investment must reflect the characteristics of the era in which you live, there is a good saying: investment is actually to use the characteristics of the times to define their own process, which is not limited to investment, but investment may be more fully reflected.

Therefore, our understanding of the evolution of the times, policies and societies will form its own investment capacity in the future. The process of future social change, how the industrial structure changes, and which industries have more development potential, this is the basis or direction of all the things that do active resource allocation.

Investing is a bridge between the present and the future. After the basic core understanding is clearer, there is a very strong structure between the future and the present, and what should be invested is relatively clear, and the investment itself is an aspect of the flow of all resources in society.

On July 20 this year, we set up our first public offering, which was close to 3.6 billion yuan in the first launch, which was a relatively smooth result. In the future, we will also lay out fixed income, FOF and other products, but there will be a sub-order, the early stage is the active equity-based, it is expected that by the first half of next year, there should be more than 3-4 equity products established.

Whether it is active, quantitative, fixed income, or FOF, more is just the difference in the way of implementation, just like water, this stage may present the shape of a bowl, the next stage may present the shape of a cup, the core is always around their own investment capabilities and understanding and cognition of the market to go.

We're not in a hurry to get out of the loop

Instead, it will focus on creating professionalism and improving the customer experience

China Fund News reporter: Public funds show obvious head effect, star fund companies and star fund managers are easy to sell explosives, in this environment, how should small companies break through?

Liang Yongqiang: In the past few years, the fund industry has developed particularly rapidly, the total amount has grown rapidly, the requirements for professions have become higher and higher, and the degree of professionalism has become higher and higher. The difference between large companies and small companies reflects more of the difference in professionalism, not just the size of the scale. Some relatively large but very professional companies have also grown rapidly in the past two years.

With the rapid rise in financial demand, the market demand for excellent investment management capabilities is particularly large. The sales channels represented by banks, securities companies and third parties are becoming more and more effective for the mining of investment management capabilities in the whole industry, and the sensitivity to excellent investment management capabilities is also particularly strong.

Matching the corresponding resources according to professionalism and investment management capabilities is the characteristic of the current stage of the industry. This is also the reason why many head companies and top fund managers have gained more money from last year to the present.

However, the problem of active management with a ceiling or a stage bottleneck, after the stage reaches the top, it is difficult to accommodate more funds, and the market will look for more professional and capable companies. Based on this understanding, we will not rush out of the circle, but in the professionalism and customer experience to do better, to make better products and services, wine is not afraid of deep alleys, big and small is actually just a natural result.

China Fund News: Some people call 2020 the first year of public funds, what do you think?

Liang Yongqiang: There is a change, that is, with the restriction of investment channels such as real estate, residents' assets are facing reallocation, and wealth management is back on the agenda. In this process, the number of listed companies is increasing, individual investors do not have professional ability to support, and it will be more and more difficult to survive in the market. Wealth management is to build a bridge between the people and the capital market, and public funds are actually the best tools and the most inclusive financial products.

In recent years, the development speed of public offering has exceeded that of other asset management institutions, which is also related to capacity building. In the past, public offerings have done a good job in asset pricing, market research, investment professionalism, transparency and standardization.

China Fund News reporter: In what aspects is the core competitiveness or maximum value of public funds? What opportunities and challenges will the public fund industry face in the future?

Liang Yongqiang: Investment management ability is the core competitiveness of public funds. The essence of doing investment is to do the pricing of assets, and how many assets the market gives you, in fact, is also the pricing of your management ability, and the era and society match all resources are generally very effective.

The public offering has been developed for 23 years, standing at a certain point in time, I feel that there are many problems, but in retrospect, the development path is very clear. The asset management industry is developing too fast, the biggest challenge lies in the construction of our own capabilities, whether we can keep up with the speed of industry development, which is the most core challenge. Not only the asset management industry, but all industries are like this, we must do it around our own capacity building.

China Fund News reporter: Has the dividend period of the public offering license passed?

Liang Yongqiang: The dividend period of public funds has not only not passed, but the rapid development has just begun.

In the past two years, the demand for wealth management has grown too fast and is still in such a stage. In addition to public offerings, other asset management institutions have also developed rapidly, which is an inevitable phenomenon in the process of rapid expansion of the industry.

It is foreseeable that the process of moving Chinese resident assets to equity assets has just begun. If we extend the time a little longer, we will find that the industry is developing much faster than everyone expected.

In the future, China's share of the global economy must continue to increase. In the past, for various reasons, the allocation ratio of global financial assets in China was low, and in the future, with the maturity of the domestic capital market and the strengthening of China's asset management institutions, global resources will continue to enter, which is another order of magnitude.

Excellent fund managers are at the core

There must be an independent framework and an open attitude

China Fund News reporter: After leaving the public fund for a few years, what thoughts have you done about investment?

Liang Yongqiang: This time is mainly reading. In the past, I have experienced peaks and troughs, and I have also experienced pursuit and doubt, and finally I have to return to my own framework, how to invest more smoothly and continuously, this is the most core thing.

Before, the perception of investment and the management of funds, from the perspective of investment, more from the perspective of investment, empathy is not so profound, after stopping, and then look at the surrounding residents or investors, communicate with them, will find that the changes in assets have a great impact on everyone, the understanding of investment is more profound than the original.

Now to start again, it is more necessary to stand in the perspective of the holder, to think about how to give them a more stable return, with this recognition, in the investment system, there will be corresponding optimization and correction. In this process, although the long-term directional things will not change, when experiencing fluctuations, there will be some means of balance, which need to be integrated accordingly. For example, there will be more cost-effective considerations for the medium term, and there will be more consideration of the entry point and valuation situation; for example, the position structure will be more balanced than in the past, and the turnover rate will slowly return to a more balanced way, because the change of hands can actually evaluate the distance between you and the market.

China Fund News: Please introduce your investment style? Past successful and failed investment cases.

Liang Yongqiang: Different industries are at different stages of development, sometimes just like a person's growth process. Before doing investment, it was more active to grow, that is, it was equivalent to a person's state before the age of 20. Many industries are in the crowd when they do not have a particularly deep degree of recognition, will cut into more, so that you can do it more calmly, and then when it is really lively, you will choose it. Several directions of previous key investments actually reflect this characteristic.

Now, there will be some optimizations in the past style, and slowly will move to the back end to consider the stability of the holder or product.

For example, in 2010 to choose emerging industries, 2013 to choose cultural media, 2014 to choose the military industry, these three investment cases are very representative, the first two are a more pleasant process, the third process experience is not too good.

The common experience formed by these cases is that the realization of potential value in the future may be a problem that may be delayed.

In these cases, the time lag is more fully reflected. Like emerging industries, the time lag is about less than half a year, and then when it really gets up, it is also very fast; cultural media is also invested in the front for more than half a year, everyone feels that there are not many opportunities in this direction, but it is particularly lively after half a year, and it has risen several times in a year. The reform of the military industry, military reform and military system are two very core nodes, these two nodes have been delayed for a long time than originally expected, but from 2017 and 2018, looking at this industry, in fact, many changes are really happening. However, due to the backward movement of time, there is a longer time lag between investment and market recognition realization, and it will be more painful to go through this process.

How to evaluate this time lag? Just like we understand a stock or asset, its entire price period, there are two factors are very core, one is the existence of the so-called information difference or cognitive difference, the other is when the information difference trend begins to eliminate, the information gap trend elimination is equivalent to from a person who is not so agreeable and then to everyone thinks it is a good thing, which is a huge value embodiment process.

In this process, what factors will cause the information gap to begin to eliminate, the elimination of the beginning is more considered now, so in the future need to use some valuation and other methods to do short-term and medium-term balance.

China Fund News: Are you still optimistic about the military industry?

Liang Yongqiang: It should be no problem. The military industry is a huge place to enjoy the dividends of China's development in the future, especially when there are more disputes between China and overseas, the military industry has taken on a role in releasing the source of innovation in all scientific and technological directions, and the pricing of this role is inevitable for many value discoveries and mining in the future.

The logic of optimism about the military industry has not changed in essence from before, but the time has been delayed.

In the past two years, the changes in the entire AVIC main engine factory, including the changes of some supporting providers, are reflecting this process, and the military industry has actually changed from the past that everyone felt that it was impossible to see, to a relatively long-term and partial value of the white horse plate.

China Fund News reporter: What are the core capabilities of excellent fund managers?

Liang Yongqiang: For investment, the core is pricing ability. For a fund manager, the core is to have an independent framework and an open attitude.

There is an independent framework, which means that it will not drift with the outside world, and in the pricing process, it is experiencing fluctuations every day, and whether its own fixed point is on the asset price or its own internal things, which is very core. If based on external asset fluctuations, it is easy to be eliminated by the market, and it is difficult to bear the long-term test, which is a particularly core point of the independent framework. At the same time, we need an open attitude, constantly thinking about what is happening in society at each stage, where the key point of the core pricing of the entire market is, and what is complementary between this and their own framework, to continue to optimize and improve, everyone's style at each stage is different, because as long as there is a new cognitive new factor coming in, it is different from the original, just like the Buddhist family said about segmented life and death.

China Fund News: You are a rare general manager-level fund manager in the industry, how to do a good job in management while doing a good job of investment?

Liang Yongqiang: The general manager needs to pay attention to and implement all the details, and the investment is relatively pure.

The two are in conflict at a certain level, but if it is based on a dimension further up, it is only the difference between different scenes and different figuratives, and when the difference and the same are really implemented, the detail-based arrangement or the arrangement based on the role bearer can solve this problem.

There are two sides to everything. Standing in the perspective of the entire company's operation also helps to truly understand the process of enterprise development and resource matching. The essence of all companies is the same, when looking at many listed companies, it will be easier to understand its pattern, understand its cognition and tolerance of all resources, the empowerment and realization of the value of the platform, and the realization of the entire value. These are all common, which is also the core problem to be solved by all enterprise models, but the corresponding raw materials, talent endowments, and ways of realizing products in different industries are different.

Several founding partners of Huiquan have rich management experience, so in the management of the company, it is to give full play to everyone's advantages, remind each other, and make up for each other. In this pattern, I may now have more energy to invest and other colleagues to help share more in management, which is also the embodiment of a lot of experience in front of you.

China Fund News: Please tell us about your circle of ability.

Liang Yongqiang: People's cognition is a process of continuous expansion, not static. For example, at a certain stage, the circle or scope of your cognition is so large, but the more you go, the understanding of all people, your understanding of yourself, and the understanding of the whole society are constantly increasing, and slowly the cognition of many things will continue to iterate and improve from more likeness to a more universal direction.

Based on this cognitive system, after you have a more universal cognition, different industries just give you different scenarios, do it based on different scenarios, and constantly iterate on many things to form a continuous expansion process.

The most cattle people in history, not all industries have experienced, will understand everything, in fact, after a deeper understanding of some industries, they have expanded and sympathized with it.

There is a sentence in the Analects that is very central: a gentleman is not a vessel. To expand again, when educating children, first of all, it is necessary to become a device, not a device is a stage, a device is a stage, and the real instrument is from a small instrument to a large instrument to a heavy instrument, and then to a non-instrument. This is a process of different stages, different levels, and different penetrations, and people's cognition is often such a process.

The probability of a long-term slow bull trend in A shares is getting higher and higher

Structural markets remain the main tone

China Fund News: How do you look forward to the next market? Which industries and stocks are more optimistic in the future? What do you think about the current significant structural market?

Liang Yongqiang: At present, the overall market is stable and rising, the pricing power of the capital market under the registration system is getting stronger and stronger, and structural opportunities around scientific and technological innovation and people's livelihood development are emerging in an endless stream.

China's residential asset allocation and global allocation trend has begun, if there is no particularly large change, the market will continue to rise in the process, but need to pay special attention to similar to the lessons of 2015, if the market as a whole is not overvalued, the market continuation time may be relatively long, A shares long-term slow bull trend probability is getting higher and higher.

From this point of view, the total risk is not particularly worried in the future, and the investment is more around the structural characteristics of each stage. Because the economy itself is also a process in which the structure and the whole are constantly causing each other, the whole is more of a result, and from the cause, the structure is an initiator.

We expect that this structured feature of the market will continue to evolve in the future, and structural opportunities will be sought around the direction of future social evolution. Industries with advantages in future development prospects will have more resource allocation and more investment opportunities. Our future investment will focus on five directions: new technology, new energy, new consumption, big data, and big finance.

In addition, in the future, A shares will become more and more like U.S. stocks, especially after the registration system, the characteristics of U.S. stocks in A shares will become more and more obvious, and the entire asset pricing power and the form of change at each stage will become closer and closer.

China Fund News reporter: New fund construction?

Liang Yongqiang: Although the public fund is a relatively return product, it has a 6-month position opening period, and it will be treated as an absolute return product during the opening period, and then match the equity product attributes until the end of the opening period. I hope to stand in the customer's perspective and give a more stable feeling.

At present, the direction of fund allocation is optimistic about several directions: securities companies, genetically modified, military and scientific and technological intelligent manufacturing, etc., mainly based on medium- and long-term logic such as wealth management and independent science and technology, the next two to three years, unless there is a particularly large change in valuation or market value, it will continue to be optimistic.

Traditional classics and investment blend

China Fund News: Can you talk about your interests and hobbies? Would you like to recommend the books that have influenced you the most or that you like, and what inspired you from them?

Liang Yongqiang: Usually like to read books, in the past two years, religious books, especially Buddhist classics, have read more, and this kind of book needs to be relatively complete time to concentrate on reading.

Each book written by each author is a good presentation of his understanding, experience and feelings about society, and reading a book is equivalent to re-experiencing the author's experience. Every time you read a book, your cognition must be different. Religious texts, on the other hand, are on a higher level, a bit like the difference between fundamental wisdom and discriminating wisdom as the Buddhists say.

China Fund News: Is it helpful to look at these classics for investment?

Liang Yongqiang: Shakyamuni, Confucius, Mencius, Lao Tzu and many other sages and great masters are the most intelligent people in human history, and they are also the crystallization of human wisdom and can be learned. But to really learn, you need to practice in your own work and scenes, grind on specific matters, so I have always hoped to introduce this system or classic things in China to investment.

About 2013, it began to use the five dimensions of "Tao, Heaven, Earth, General, and Law" in sun tzu's Art of War to select companies, of which "Dao" refers to corporate values; "Tian" represents the policy direction or social evolution direction; "Land" refers to the layout of listed companies including people, assets, geographical location, etc.; "Will" represents the management of enterprises; and "Law" refers to all institutional systems, including reward and punishment systems.

Now the overall framework can still be used, but in the endowment of meaning, the connotation will be richer. For example, originally based only on the interests of listed companies and capital markets, more things that imply "Tao" are now introduced, that is, things that can determine the true long-term and value of enterprises.

In addition, to solve the problem of investment mentality, the six Buddhist perfections of generosity, taking vows, forbearance, perseverance, meditation, and pranayama can be introduced, which is also a cyclical process.

China Fund News: If you don't make an investment, what do you want to do most except read books?

Liang Yongqiang: In the future, if it is possible, I hope to teach many children to read, but in fact, it is not teaching, it is the process of growing up with them.

This article originated from China Fund News