Source: China Fund News
Morningstar Fund, few stars. At a time when the number of domestic public funds has exceeded 9,400, only one fund in the five categories of the Morningstar (China) Fund Awards wins every year. With its high standards and scarcity, this award enjoys a high reputation worldwide.
Recently, Morningstar (China) 2022 Annual Fund Award was officially announced. Penghua Fenglu Bond Fund (003547), managed by Liu Tao, a famous shareholder of Penghua Fixed Income, which won the Golden Bull Award, won the "Morningstar (China) 2022 Pure Debt Fund Award". This is also the second time that the fixed income team of Penghua Fund has won the Morningstar Award after Penghua Industrial Bond won the "Ordinary Bond Morningstar Award" in 2020. Winning this award twice in just 3 years shows that the "Golden Team" of Penghua Fixed Income shines in the authoritative awards of few stars.
Looking back at the winners of the Morningstar Fund Awards in the fixed income awards over the years, they are basically from the industry's first-class fixed income "big factories", such as E Fangda, Nanfang, Penghua, China Merchants, etc. The common denominator of these companies, in addition to the flagship products with outstanding performance and top-notch fund managers, is that they have witnessed history in the Chinese bond market, participated in history, and made forward-looking layouts in line with history, bringing investors fixed income products with outstanding long-term performance; at the same time, with a refined management model and a professional and efficient investment research team, the fixed income business can maintain its continuous excellence.
The penghua fund fixed income team is a typical case. Under the leadership of Han Yaqing, vice president of Penghua Fund and director of fixed income investment, Penghua Fixed Income Gold Team has created a "high-quality investment and research system" with product capabilities as the carrier, investment research capabilities as the core, and marketing capabilities as resources. Under the guidance of a clear strategic direction, Penghua Fixed Income Golden Team relies on the team advantages of investment and research integration and efficient collaboration, through solid research and forward-looking layout, iteratively evolves the overall investment and research capabilities of the team, timely undertakes the opportunities brought by the market outlet, and steadily advances towards the trillion-level fixed income management goal.
Excellent products cast the cornerstone of the brand
The high gold content of the Morningstar Fund Award, in addition to the scarcity of quantity, also comes from its strict requirements for product investment management. The selected products must not only have good returns in the current year, but also have outstanding performance in the medium and long term and always be consistent with the interests of investors.
Take, for example, the award-winning 003547, which has performed well in every full fiscal year since its inception. According to the annual report data, since its establishment on October 27, 2016, Penghua Fenglu Bonds has achieved positive returns on net worth growth for five consecutive natural years from 2017 to 2021, with net value growth rates of 3.68%, 7.86%, 7.58%, 6.04% and 5.58% respectively. According to Galaxy Securities data, as of March 31, 2022, the fund's net value growth rate in the past three years and the past five years reached 20.62% and 35.21%, respectively, ranking first in the 362/200 bond base of the same kind, and obtained the three-year and five-year five-star ratings of Galaxy Securities. At the same time, according to the medium- and long-term performance list of Morningstar China Public Funds, as of March 31, 2022, Penghua Fenglu Bonds ranked first among the 96/131 bonds of the same kind in the five-year and three-year lists with an annualized net value growth rate of 6.24% and 6.36%.
Previously, Penghua Industrial Bonds (206018), managed by Zhu Song, won the Morningstar (China) 2020 General Bond Fund Award, and the fund also performed well in the medium and long term. According to the annual report data, since its establishment in February 2013, Penghua Industrial Bonds has obtained positive returns on net worth growth for eight consecutive natural years from 2014 to 2021, with net worth growth rates of 18.65%, 10.32%, 0.79%, 2.98%, 7.77%, 9.79%, 4.34% and 6.11% respectively. According to the medium- and long-term performance list of Morningstar China Public Funds, as of March 31, 2022, Penghua Industrial Bonds grew with an annualized net value of 6.37%, ranking first among the 112 debt bases of similar types in the five-year list.
It is understood that in addition to examining the total return, risk, risk-adjusted return and other indicators of the Morningstar Fund Award, the stability of the fund manager team, the duration of the fund manager, and the stability of the management team of the fund company are also the key factors that Morningstar examines. According to the data, Zhu Song, the fund manager of Penghua Industrial Bonds, and Liu Tao, the fund manager of Penghua Fenglu Bonds, have 15 years and 9 years of experience respectively, and the two fund managers have joined Penghua Fund for 8 years and 9 years respectively, and have been managing two products for more than 8 years and 6 years respectively.
In fact, The Morningstar Award products such as Penghua Industrial Bonds and Penghua Fenglu Bonds are just a microcosm of Penghua's excellent debt base. Among the many debt bases managed by Penghua Fund, Penghua Fengfeng Fixed Bond, Penghua Zhaohua One-Year Holding Period, Penghua Convertible Bond, Penghua Double Bond Garley, Penghua Credit Increase, etc. are all excellent products in the field of fixed income of the company. These star-studded star products are the cornerstone of Penghua Fixed Income's formation of a leading brand advantage, and one of the tools for investors to obtain long-term and stable investment returns.
According to industry analysts, the core of measuring the investment research ability of a fixed income team, trying to avoid the performance of a single product or a single year, it is best to examine the overall investment performance from a medium- and long-term perspective. The overall strength of Penghua Fund's fixed income is obvious to all, and the achievements in the medium and long term are remarkable.
According to Haitong Securities' "Absolute Return Ranking of Fixed Income Funds of Fund Companies", as of March 31, 2022, the average yield of Penghua Fixed Income Funds in the past two years was 8.42%, ranking top 3 of large fixed income companies; the average yields of the last 3 years and 5 years were 14.63% and 27.74%, respectively, ranking TOP5 among large fixed income companies. According to Galaxy Securities' "Evaluation List of Active Management Ability of Bond Investment of Public Fund Managers", as of March 31, 2022, in the evaluation of active management ability of bond investment in the past 3 years and 5 years, Penghua ranked at the forefront of the whole market with an average growth rate of 13.53% and 25.96% of the average active management net value of bond investment.
For investors, fund companies that can achieve long-term returns must be trustworthy, which has also made the management scale of Penghua Fixed Income team grow rapidly in recent years. As of the end of January 2022, penghua fixed income team has managed a total of more than 800 billion yuan of fixed income assets, and is currently steadily moving towards the goal of fixed income trillion yuan. According to the public data of the public fund industry at the end of the fourth quarter of 2021, the scale of public fixed income products managed by Penghua ranked 8th in the industry.
From the perspective of product types, at present, Penghua Fixed Income's product line covers eight major tracks such as monetary funds, pure bond funds, primary bond bases, secondary debt bases, convertible bond funds, bond index funds, and hybrid funds, which have excellent works in various fields and balance their efforts, which also highlights the brand effect of Penghua Fixed Income's "golden team".
Fixed income investment pays more attention to the power of the platform
Compared with equity investment, fixed income investment relies more on the platform, team and investment research system. Fixed income investment is mainly a combination of top-down and bottom-up, which requires a deep understanding of various macro variables, and also takes into account the long-term and short-term time dimensions. Such system research, relying on a single person to achieve almost impossible, only with the help of a strong and perfect investment and research system, adhere to the fine division of labor and efficient cooperation, in order to continue to operate in the market for a long time.
It can be found that the long-term performance of fixed income investment in the market is more prominent, often mostly fund companies with large platforms. This also proves to us that the real platform, team, integrated operation, in order to further form the core competitiveness of the fixed income business, so as to bring customers steady growth of wealth.
Since its birth in 2003, after 19 years of deep cultivation, Penghua Fund has created a "golden team" of high-quality investment - orderly echelons, stars and efficient coordination, escorting more than 800 billion fixed income assets. From the perspective of team size, Penghua Fixed Income team has 66 members, high team cohesion, three generations of strength inheritance, nearly 20 years of experience in the industry to grasp the overall situation, middle-level backbone experience, diversified styles, both Chinese local and overseas investment and research experience. In addition, Penghua Fixed Income also includes a strong credit research team composed of 21 members to achieve industry-wide coverage of credit product research.
At the same time, the Penghua fixed income team has a strong brand influence in the market, bringing together more than 10 years of investment research veterans (Liu Sun, Zhu Song, Zhang Jia, Ye Chaoming, Wang Zhifei), the backbone (Liu Tao, Yang Yajie, Zhang Jialei, Wang Shiqian, Fang Chang, Wang Kun) and other well-recognized fixed income brand fund managers, becoming the key force and solid backing of the Penghua fixed income team to achieve long-term and stable performance. Among them, Ye Chaoming mainly focuses on cash management products, Liu Sun, Liu Tao and other pure debt products, primary bonds and secondary debt "helmsmen" are Zhu Song, Wang Shiqian and Fang Chang, respectively, while financial management alternatives to "fixed income +" are carefully managed by the mixed asset investment team led by Zhang Jia.
Observe the business philosophy of penghua fixed income team, pay attention to strengthening team awareness in many aspects, improve the investment and research interaction mechanism, form an internal benign interactive relationship, and fully explore the sense of identity and belonging of each member. Specifically, the team carried out close investment and research exchanges through different frequencies and types of seminars. Bond researchers provide sufficient "ammunition" for fund managers by closely tracking various types of industrial bonds, analyzing the financial statements of related companies, and tracking the industrial prosperity. The credit evaluation team should take on a great responsibility, through professional inspection and evaluation, to discover the real reputation of the enterprise, and continue to closely follow up after buying bonds. At the same time, the credit strategy is combined with the credit rating to prevent credit risks and find high-quality targets.
For a long time, Penghua Fixed Income team attaches great importance to talent training, and has established a perfect talent echelon training system, carefully selected and trained researchers, established an open, transparent and quantitative selection mechanism, promoted researchers with outstanding research strength and rich experience in market investment response to fund manager assistants, and then improved through combination of practical training, and promoted to fund managers with outstanding performance. Han Yaqing, vice president of Penghua Fund, said that the competition in the asset management industry is very cruel, and the opponents are a group of high-IQ players, just like the Olympic games. "The arena is like a battlefield, I am the head coach, to observe the state, style, advantages, and shortcomings of each team member, to constantly 'learn from each other', and to train into a bloody, dare to fight, pursue excellence, and constantly improve the team."
epilogue
Winning the award is an incentive and a new starting point. For the "golden team" of Penghua Fixed Income, in the context of a new era, the blueprint of the trillion new journey is being depicted, and the path to realization is clearly discernible. In the future, we look forward to this team ushering in a new bloom.
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Dear Investors,
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