Text | Tianfeng
Source|Fortune Unicorn
As a bank-affiliated fund company, ABCI Fund Company (ABCCI) has attracted much attention for winning the top four annual results in 2020. However, in recent years, the A-share market has changed dramatically, its product style has not been adjusted in time, active equity funds are not ideal, and the performance of fund products that used to lead is not satisfactory this year.
It is worth noting that due to the loss of fund product performance, the management scale of ABCCM has dropped to 165 billion yuan from 267.9 billion yuan at the end of the second quarter of 2021. Among them, ABCCI's equity products suffered a large loss, and fund manager Zhang Feng was also mired in losses. The performance loss also led to a decline in the net profit of ABCCM Fund, and the 2022 annual report released by ABC showed that ABCCM Fund achieved a net profit of 346 million yuan in 2022, down 46.60% year-on-year.
01
Novice fund manager Liao Ling is mired in losses
Its funds fell by 2.067 billion yuan in seven quarters
(Data from Tiantian Fund Network)
According to the daily fund network, Liao Ling, the fund manager of ABCCI, is recently issuing a new product, ABC Balanced Preferred Hybrid A/C, which is managed by Liao Ling alone and belongs to a hybrid-balanced product, with a centralized subscription period from August 21 to September 8. However, the author found that Liao Ling is not a fund veteran, and judging from his employment experience, before becoming a fund manager, he was engaged in industry analysis and other work.
Liao Ling has served as a strategic analyst of the research and development department of Huaxin Securities Co., Ltd., a senior analyst of the strategy and small and mid-cap team of Zheshang Securities Research Institute, a senior analyst of the strategy team of GF Securities Development Research Center, a chief analyst of overseas research, and an investment manager of the equity investment department of GF Securities Asset Management (Guangdong) Co., Ltd., and joined ABCI Fund Management Co., Ltd. in July 2022.
Since February 23, 2023, he has served as the fund manager of ABCCI's Rational One-Year Regular Open Hybrid Securities Investment Fund and ABCCI's China Advantage Flexible Allocation Hybrid Securities Investment Fund. Since July 18, 2023, he has served as the fund manager of ABCCI's Flexible Allocation Hybrid Securities Investment Fund. The cumulative tenure is 192 days, the current fund size under management is 934 million yuan, and the best fund return during the tenure is -3.98%.
(Data from Tiantian Fund Network as of September 5)
According to the daily fund network, Liao Ling currently has 3 funds under management, but whether from the long cycle or short cycle, the performance of the 3 funds has shown losses. In the past six months, all three funds have lost money, among which the ABCHUI Rational Increase One-Year Fixed Open Hybrid Fund has the largest loss, with a yield of -11.37%; In the past 1 year, 3 funds have also lost money, among which ABC's Flexible Allocation Hybrid Fund has the largest loss, with a yield of -20.31%; In the past two years, there have also been 3 funds that have lost money, among which ABCCI's Flexible Allocation Hybrid Fund has the largest loss, with a yield of -27.59%.
(Data from Tiantian Fund Network as of September 5)
According to Tiantian Fund Network, ABCCM Liruixuan Flexible Allocation Hybrid was established on May 25, 2018, and the fund is currently managed solely by Liao Ling, with a net unit value of 2.121 as of September 5. As of the end of the second quarter of this year, the fund size was 78 million yuan. The fund yield has been -7.24% this year, -10.25% in the past 6 months, -20.31% in the past 1 year, -27.59% in the past 2 years, and -2.76% in the past 3 years.
(Data from Tiantian Fund Network as of September 5)
From the perspective of turnover rate, since the second quarter of 2019, the turnover rate of the fund has been very high, reaching 723.88% in the second quarter of 2019, 608.78% in the fourth quarter of 2019, 668.74% in the second quarter of 2020, 756.91% in the fourth quarter of 2020, maintained at about 300% in 2021, and as high as 453.20% in the second quarter of 2023.
(Data from Tiantian Fund Network as of September 5)
The author found that under the background of high turnover rate, the position changes greatly in each quarter, and the top ten heavy stocks in the first and second quarters of 2022 still overlap with some similar to CATL, Oriental Cable, Poly Development, and Air China, but since the beginning of the third quarter of 2022, the probability of overlapping the top ten heavy stocks has gradually decreased. In particular, the top ten heavy stocks in the first and second quarters of 2023 have almost no overlapping stocks. Although an appropriate turnover rate can increase profits, if the turnover rate is too high, it is easy to cause losses.
(Data from Tiantian Fund Network as of September 1)
The fund was initially established with a scale of 377 million yuan, and since the third quarter of 2018 was redeemed 55 million shares, there have been corresponding subscriptions and redemptions in subsequent quarters, but the overall fund size has shown a downward trend. As of June 30, 2023, ABC's net assets at the end of the period were RMB78 million, a decrease of 13.72% over the previous period.
(Data from Tiantian Fund Network as of September 1)
According to the daily fund network, ABCHUI Rational Plus One-Year Fixed Open Hybrid Fund was established on October 20, 2020, and the net value of the fund's units was 0.8592 as of September 1 (the latest data is consistent and not updated). As of the end of the second quarter of this year, the fund size was 675 million yuan. From the performance point of view, the performance of the fund is not satisfactory, the yield since its establishment is -14.08%, this year yield is -8.03%, the yield in the past 6 months is -11.37%, the yield in the past 1 year is -16.66%, and the yield in the past 2 years is -16.37%.
(Data from Tiantian Fund Network as of September 5)
According to the Tiantian Fund Network, the ABC Rational Plus One-Year Fixed Open Hybrid Fund was publicly managed by Zhang Feng and Xu Tuo at the beginning of its establishment, with a return of 17.72% after 1 year and 70 days of service; However, from December 30, 2021 to July 5, 2022, it became Xu Tuo's sole management, and the fund began to lose money, with a return of -7.89% under management; From July 11, 2022 to February 22, 2023, it became Chen Fuquan's return on sole management -10.07%; Since February 23, 2023, it has been jointly managed by Chen Fuquan and Liao Ling for 194 days, with a return of -10.70%.
(Data from Tiantian Fund Network as of September 5)
The question for most people about this fund is when it will be redeemed? Some people said that seeing that some people said that this year's redemption time was in early November, and last year was in October, I wanted to ask why this year was postponed to November? Do you have to postpone it by one week every year? According to this calculation, ten years later, the redemption time will be the January of the following year, is this reasonable? Is it fair?
(Data from Tiantian Fund Network as of September 5)
The fund has been losing money, and some people said, the fund company, you can't stop for us or let us stop the loss ourselves, are you responsible for our losses? When are you going to lose? The author found that the initial size of the fund was 2.639 billion yuan. After a one-year closed period, the fund was redeemed 1.727 billion shares in the fourth quarter of 2021, leaving only 1.106 billion yuan in net assets at the end of the period, with a net asset change rate of -59.68%.
In the fourth quarter of 2022, 161 million shares were redeemed again, leaving only 702 million yuan in net assets at the end of the period, with a net asset change rate of -20.43%. As of June 30, 2023, ABCHUI increased its net assets at the end of the period to 675 million yuan, a decrease of 4.12% over the previous period. Compared with RMB2,742 million in the third quarter of 2021, it decreased by RMB2,067 million in seven quarters.
02
ABCCI's equity products accounted for only 30%.
Investment Director Zhang Feng's fund lost -39.03%
ABC's strategic income was reduced in the size of hybrid funds held in one year
According to Tiantian Fund Network, ABCCI Fund was established on March 18, 2008, with Agricultural Bank of China Co., Ltd. accounting for 51.67% of the shares, Fanghuili Asset Management Hong Kong Limited accounting for 33.33% of the shares, and Chalco Capital Holdings Co., Ltd. 15%. The general manager is Cheng Kun, which currently has 76 funds and 20 fund managers. The company is registered in Shanghai, and the registered capital is 100 million yuan.
According to the official website of ABCI Fund Company, the equity funds under ABCI Fund have achieved an average yield of 124.04% in the past three years, ranking first (1/135) in the equity investment list. ABCI Fund is committed to building a flagship brand of China's fund industry, dedicating professional wisdom to providing investors with high-quality and considerate financial services and helping investors achieve wealth appreciation. The company's goal is to become an industry-leading asset manager trusted by investors.
(Data from Tiantian Fund Network as of September 5)
It is worth noting that in recent years, the scale of ABCCM Fund has fluctuated sharply, and after the fund size exceeded 100 billion yuan in the fourth quarter of 2016, the fund scale has maintained growth, but after hitting a high of 267.979 billion yuan in the second quarter of 2021, the fund scale began to decline. As of the end of the second quarter of 2023, the fund size fell to 165.019 billion yuan. Compared with 171.857 billion yuan in the fourth quarter of 2022, it was a decrease of 6.8 billion yuan.
Compared with 205.562 billion yuan at the end of the fourth quarter of 2021, it decreased by 33.705 billion yuan.
(Data from Tiantian Fund Network as of September 5)
From the perspective of scale structure, according to flush, as of the end of the second quarter of 2023, the scale of ABCI Fund bond fund was 60.656 billion yuan, accounting for 36.76%; The scale of monetary funds was 56.836 billion yuan, accounting for 34.44%; Hybrid funds amounted to RMB41.431 billion, accounting for 25.1%; The size of equity funds is only 5.490 billion yuan. From the perspective of product structure, the product structure of ABCI Fund is seriously unbalanced, and equity products account for only 30%.
One of the key indicators of a fund's earning power is the performance of active equity products, in which the performance of the head fund manager determines the company's current and future attractiveness and potential size to investors. From this perspective, the performance of some products under ABCI Fund is not satisfactory, among which the performance of investment director Zhang Feng is not satisfactory.
The poor performance of fund products will also be reflected in the annual report or interim report of the fund company. On the evening of August 29, the Agricultural Bank of China released its 2023 half-year report. According to the half-year report, as of the end of June 2023, the total assets of ABCI Fund were 4.899 billion yuan, the net assets were 4.578 billion yuan, and the net profit in the first half of 2023 was 189 million yuan, an increase of 56.20% compared with the net profit of 121 million yuan in the same period last year.
However, the results of last year's ABCI Fund were not ideal. According to the 2022 annual report released by the Agricultural Bank of China, the net profit of ABCC Fund in 2022 was 346 million yuan, down 46.60% year-on-year. As of December 31, 2022, ABCCM Fund had total assets of RMB4.708 billion and net assets of RMB4.388 billion. ABCI has an asset management scale of 323.2 billion yuan and 74 public funds with a scale of 171.9 billion yuan. The size of bond funds increased by 20% compared to the end of 2021.
Some people expressed their puzzlement as to why the net profit of ABCCI's fund fell from RMB648 million in 2021 to RMB346 million in 2022 against the backdrop of a good bank fund, which may also be related to the weak performance of ABCCI's overall fund products in the past year and the sharp decline in fund management fees.
(Data from ABCCI's official website)
According to the official website of ABCI Foundation, Mr. Zhang Feng's degree is a master's degree in engineering. Have the qualification of fund practitioner. He has served as a researcher and assistant investment manager of Southern Fund Management Co., Ltd. He is currently the investment director and fund manager of ABCI Fund Management Company. According to the daily fund network, Zhang Feng has served for 7 years and 354 days, and the current fund size under management is 8.052 billion yuan, with the best fund return of 110.10% during his tenure.
(Data from Tiantian Fund Network as of September 5)
According to the daily fund network, Zhang Feng's performance in recent years is not satisfactory, whether it is a short-cycle or a long-term cycle, the performance of 5 funds has lost money. In the past six months, 5 funds have lost money, among which ABC's strategic income has the largest one-year holding hybrid loss, with a yield of -16.46%; In the past 1 year, 5 funds have also lost money, among which ABC's strategic income one-year holding hybrid still has the largest loss, with a yield of -23.88%; In the past two years, 5 funds are still in a loss state, of which ABC still has the largest one-year holding hybrid loss in strategic income, with a yield of -32.01%.
(Data from Tiantian Fund Network as of September 5)
According to the daily fund network, ABCCM Strategy Trend Hybrid Fund was established on March 13, 2020, and the net unit value of the fund was 0.9169 as of September 5. The fund manager is Zhang Feng, and the current fund size is 463 million yuan. The fund has been losing money since its inception with a yield of -8.31%, a yield of -14.53% this year, a yield of -16.30% in the last 6 months, a yield of -23.50% in the last 1 year, a yield of -30.71% in the last 2 years, and a yield of -30.88% in the last 3 years.
(Data from Tiantian Fund Network as of September 5)
In addition to the ABCCM Strategy Trend Hybrid Fund, the performance of the ABC Strategic Income One-Year Holding Hybrid Fund is also average. The author found that among the funds managed by Zhang Feng, the ABC Strategic Income One-Year Holding Hybrid Fund is not only the largest, but also the one with poor performance. According to Tiantian Fund Network, ABC's one-year strategic income holding hybrid was established on January 27, 2021, and the net value of fund units was 0.6097 as of September 5. Fund manager Zhang Feng, who has been in office for 2 years and 222 days, has a return of -39%. The fund size is 3.987 billion yuan.
In terms of performance, the fund has yielded -39.03% since its inception, -14.74% this year, and an average return of -6.99% for similar types; The yield in the past 6 months is -16.46%, and the average yield of the same class is -10.76%; The yield in the past 1 year is -23.88%, and the average yield of the same kind is -12.44%; The yield in the last 2 years is -32.01%, and the average yield of the same class is -25.38%.
(Data from flush as of September 6)
The author randomly looked at the details of the top ten heavy stocks in each quarter and found that the fund held 1.902 million shares of Gaoti in the fourth quarter of 2022, 2.198 million shares in the first quarter of 2023, and 2.8487 million shares in the second quarter of 2023. However, from October 14, 2022 to September 6, 2023, the price of Gao Test shares fell by 50.53%.
(Data from flush as of September 6)
It is worth noting that the fund held 375,900 shares of Aimeke in the third quarter of 2021 and 846,900 shares in the fourth quarter of 2021, 931,700 shares in the first quarter of 2022, 796,400 shares in the second quarter of 2022, 561,100 shares in the third quarter of 2022, and 181,700 shares in the fourth quarter of 2022. It held 299,600 shares of Aimeke in the first quarter of 2023 and 313,600 shares in the second quarter of 2023. However, in recent years, the share price of Aimeke has been falling, from October 12, 2021 to September 6, 2023, the share price of Aimeke has fallen by 22.50%.
(Data from Tiantian Fund Network as of September 1)
Fund performance loss, some people said, why this fund can subscribe to 8 billion at that time, is it your Zhang Feng's personal charm, there is no agricultural bank who knows you this guy, agricultural bank employees in order to complete the task, did not hesitate to take out their only savings to buy this fund, almost 3 years, in exchange for what, the loss of funds by 40%, but also to face the customer's rebuke, Zhang Feng, what face do you have to manage this fund. You have completely ruined the reputation of the ABC Fund and pitted the ABC employees.
(Data from Tiantian Fund Network)
There is also an objective analysis of this fund, saying that if this continues, this foundation will reach 5 Mao. Because Zhang Feng has missed this market. Now it's not about changing managers, but this fund is like this, who can take this mess.
According to the daily fund network, the scale of ABC's strategic income was 7.885 billion yuan at the beginning of the establishment of the one-year holding hybrid, but since the first quarter of 2022, there has been a large redemption of 693 million shares. Shares have been redeemed every quarter thereafter. As of June 30, 2023, ABC's strategic income was held in a hybrid period for one year, and the net assets at the end of the period were 3.987 billion yuan, a decrease of 13.11% from the previous period. Compared with 7.885 billion yuan at the beginning of its establishment, the size of the fund decreased by 3.898 billion yuan.