□ Xu Jinzhong, a reporter of this newspaper
He Fang, 19 years of experience in the securities industry. He has successively served as the general manager of Western Securities Investment Management Headquarters, the assistant general manager of Western Securities, the general manager of Shanghai First Branch, and the deputy general manager of Western Securities. From September 2017 to February 2021, he served as the general manager of Western Securities. He has been the Chairman of Western Lide Fund since March 2019.
What is the philosophy of the new fund company? Some people choose to use dreams as horses and stars and seas, and some people choose to be down-to-earth and walk steadily and far. In which way, the philosophy of the Western Lide Fund is pragmatic, that is, to do what is appropriate under the condition of limited resources. Accumulating steps to thousands of miles is the posture of the Western Lide Fund in the historical tide of the development of the public fund industry.
Under such a philosophy, the Western Profit Fund is just like the seedlings of spring, not seeing its growth, seeing its growth. Although it is still a rising star in the public fund industry, the company's distinctive fund managers and fund products have "exposed the sharp corners of the small lotus". With its outstanding performance in the field of fixed income, the Western Lide Huixiang Bond Fund won the "Three-year Open-ended Bond Type Sustained Winning Golden Bull Fund", achieving the company's breakthrough in the Golden Bull Award; the company's quantitative and index enhancement funds were more because of the "Polytechnic Men's Romantic Purchase Restriction" of 1024 yuan, which attracted investors' attention.
In 2020, Western Lide Fund achieved a net profit of nearly 30 million yuan. This provides the confidence for He Fang and Western Lide Fund to practice a pragmatic and far-reaching development philosophy. "We believe that we can only make money for our shareholders and the company after we make money for our investors. When we gradually distance ourselves from the break-even line, the company can plan more and longer. "Operation and management is like a chess game, where and the western Profit Fund, step by step, the overall planning."
Secondary entrepreneurship
In March 2019, He Fang, general manager of Western Securities, officially served as the chairman of Western Lide Fund; in February this year, He Fang stepped down as an executive of securities companies to focus on the management and operation of Western Lide Fund.
At this time, the Western Profit Fund has entered the eleventh year after its establishment. The Western Lyde Fund, formerly known as the New York Mellon Western Fund, was established in 2010. However, this time the development of the integration of China and the West has brought more pain than joy to everyone. In 2014, Chinese and foreign shareholders went to the future, and the company also completed the equity change in October of that year, from a Sino-foreign joint venture company to a domestic fund company controlled by the state-owned enterprise Western Securities, forming an equity structure of 51% of Western Securities Holdings and 49% of the shares held by Lide Technology.
Looking back at the time, Western Securities' 2014 annual report showed that the Western Profit Fund had not yet achieved profitability that year. At that time, he was in the position of deputy general manager of Western Securities. He Fang recalled that at that time, the Western Lide Fund was actually seriously injured in a series of changes, and the industry said that the company developed into a "four-year dream" from 2010 to 2014, which is not exaggerated.
After the transformation into a domestic fund company, the development of Western Lide Fund has opened a new chapter. However, in whose view, the new start of the Western Lide Fund after 2014 is a second venture. "At that time, in the face of very limited resources, the first thing the Western Profit Fund had to do was to survive. In the asset management industry, an institution can only survive by making money for investors, so that it can make money for the company and shareholders. Surviving was the number one priority at that time. "Who recalls those difficult years like this.
In the company memorabilia of Western Profits Fund, it is recorded that on October 24, 2014, the company name was renamed from New Zealand Bank Mellon Western Fund Management Co., Ltd. to Western Profits Fund Management Co., Ltd.; in December 2016, the company's registered capital increased from RMB300 million to RMB350 million; in March 2017, the company's total assets under management exceeded RMB50 billion; on January 30, 2018, the company was qualified as an investment manager to be entrusted with the management of insurance funds... Behind this is the ability of the Western Profits Fund to continue to create income for investors in its chosen areas, and from the results, the Western Profits Fund under the thousands of hammers has begun to make a sound and colorful career. For example, fixed income funds have the highest growth rate of net worth in the past five years (January 1, 2016 to December 31, 2020) among comparable companies in the industry during the same period.
However, for the Western Profit Fund, which has started a second venture, a break-even line, that is, the line between positive and negative returns to shareholders, has been haunting the heart of the Entrepreneurial and Innovative Western Profit Fund. At the end of 2015, Western Profits Fund officially opened its second venture, after which the company's operation situation was quickly reversed. From 2017 to 2019, the net profit of the Western Profit Fund began to improve, with a profit of nearly 4 million yuan, a profit of more than 5 million yuan and a profit of more than 12 million yuan, which is already a judgment compared to the previous continuous loss. By 2020, the cumulative annual revenue of Western Profit Fund reached 278 million yuan, achieving a net profit of nearly 30 million yuan, an increase of 138% over the previous year.
"It's hard to say we're far from the break-even line, but it's safe to say that we're pulling away from this lifeline that means the company can't take care of itself." For the shareholder, Western Securities, after more than ten years of investment, it is ushering in a turning point in the continuous acquisition and release of profits by western profit funds. As the company's management, we are full of gratitude for the long-term support of shareholders, and also understand that Western Lide Fund needs to be self-reliant, need to win the industry status with professional focus, and feedback the continuous investment of shareholders. He said.
Investment-oriented
Looking back at the origin of the Western Profits Fund, He Fang is very frank and believes that it is not the result of careful planning and positioning. "Western Profits Fund is a late-developing company in the industry, and although it has the support of shareholders, it still has historical baggage. The resources we have are relatively limited, the development window period is relatively narrow, and we can only use our limited resources in the strategic window period to win our own place in the wave of the times in the asset management industry. "Who is not afraid to talk about the relative disadvantages of the Western Profits Fund.
In who's view, after 2014, the Western Profit Fund chose a path with the lowest risk of entrepreneurship. "Western Lide Fund first used the resources of the time to develop monetary fund products and created a stable business for the company. Then based on the management experience of currency products, we began to enter the field of fixed income, and later the field of index enhancement, etc. Western Lide Fund continues to move forward step by step, and in recent years, the company has begun to strengthen the layout of active equity products. "Who sorted out the development context of the Western Profit Fund in this way."
It is precisely under the pragmatic entrepreneurial philosophy that the Western Lide Fund did not rush to shout loud slogans in the process of development, let alone change course and start over in the process of development. In the eyes of whom, the development of the Western Lide Fund is a "one-time, one-thing" model, looking at the opportunities for the development of the industry, according to the pace of its own development, the day arches a pawn, still water deep flow. "When the Western Lide Fund began to have its own 'home base' and began to get rid of the survival line, according to our understanding of the asset management industry, the positioning of the supplier of basic products was logical. We hope to provide investors with more investment products and become a provider of their investment allocation service needs. He said.
The road is long and the road is long, and there is only a way to survive that is sought up and down. In who's view, the development era of the public fund industry is the most solid foundation for the development of the Western Lide Fund. However, the success of an investment is both the beta of the market and the industry, and the alpha that takes the initiative to dig. The development of the industry is the beta backed by the Western Lide Fund, and the Western Lide Fund is still trying to find an alpha that it can grab. "The public fund industry is a tadpole-shaped model, a fully competitive industry, that is, the advantages of head fund companies will be maintained for a long time, and they have outstanding acceleration in development." As a late-developing fund company, Western Lide Fund hopes to pursue higher acceleration and hopes to have its own core capabilities in this fully competitive industry. "This is where the understanding of the competition law of the public fund industry."
Of course, the acceleration pursued by the Western Lide Fund is based on a solid investment and research orientation. He observed that in the industry, the less companies that pursue scale, the less they lack scale. He Fang believes that the scale is only the result of investment research capacity building, and it is only the natural result of truly being responsible to investors. "This is the firm direction pursued by the Western Lide Fund, the investment-research-oriented company can go a long way, the Western Lide Fund is committed to becoming a supplier of basic products, the core message behind it is that we must also have the ability to match the investment and research." He Fang pointed to the core essence of the development of the Western Profits Fund.
"When the company's investment and research capabilities are strong and the product performance is good, the effectiveness of the current market is very strong, and you can immediately find such advantages and advantages as you." If the company's investment and research capabilities cannot keep up and the product performance is not satisfactory, even if it is sold, it will eventually be a flash in the pan. "He Fang has a deep understanding of the end of the development of public fund companies. Such an understanding may be a little rustic in today's top stream and circle-breaking flying, but this is the pragmatic philosophy of which side, and it is kept.
The small lotus exposes the sharp corners
The second venture of the Western Lide Fund has entered 7 years, and today's Western Lide Fund has been "a small lotus exposing its sharp corners", and in the industry, it also has its own foundation.
A few days ago, the 18th China Fund Industry Golden Bull Award, known as the Oscar of the fund industry, was officially announced. With its outstanding performance in the field of fixed income, Western Lide Huixiang Bond Fund won the "Three-year Open-ended Bond Type Sustained Winning Golden Bull Fund". The ensuing awards highlight the industry's high recognition of the long-distance running strength of Western Lide Huixiang Bonds, and are also a full affirmation of the fund's fund manager Yan Zhiyong's ability to consolidate income and investment research. As the leader of the Western Lide fixed income team, Yan Zhiyong, who is currently the director of fixed income investment in the public offering of the Western Lide Fund, has been practicing for more than 10 years, including 4 years of fund management experience. With the reputation of "credit evaluation strength", he focuses on macro interest rate and credit research, digs deeper in credit risk screening and high-quality bonds, and strives to obtain alpha returns on credit bonds.
In addition, recently, Sheng Fengyan, the fund manager of the Western Lide Fund's active quantitative investment, has successively restricted the purchase of the Western Lide Quantitative Growth Mix and the Western Lide CSI 500 Index Enhancement, with a purchase limit of 1024 yuan, which is jokingly called "romantic science man", which has aroused the attention of the industry and investors. The desk has five computers, the sports favorite yoga, the fund manager who does math titles decompression, and gives the industry a new perspective on the Western Lide Fund, as well as the company's quantitative and index-enhanced investments.
"Over the years, from the selection of core personnel and executives to the annual assessment and incentives, shareholders have relied on a set of market-oriented methods. Under such an institutional mechanism, the training and assessment of the investment research team can also focus on the longer-term goal. The Western Lide Fund will provide a platform for investment researchers, and although the relative advantage may be limited, the inclusiveness and support of the platform will not lag behind others. What we do now is focus on doing the right thing, and time will give us the results we insist on. "He Dialect is earnest.
The second entrepreneurial process of the Western Lide Fund is still continuing, and the process of leading the Western Lide Fund to explore and improve will also continue. "I want to emphasize two points: the first is that we need to provide investors with better products and services; the second is to continue to improve the return to shareholders by continuing to do so. That's what it means to be a business! "At the end of the interview, Ho fang summarized what Western Lyde Fund is doing and hoping to do, which is also what He Fang is doing and hoping to do as a member of management.
This article originated from China Securities News