The annual active equity fund championship battle is the most stubborn year, and it is difficult to see it at the moment, can Soochow Liu Yuanhai have the last laugh?

Finance Associated Press, December 17 (Reporter Li Lvjia) Wind data shows that the list of active equity funds with the highest performance during the year at the end of the year has changed hands several times, and the competition is fierce.

On December 14, Soochow Mobile Internet A/C managed by Liu Yuanhai, Taixin Industry Select A/C managed by Dong Shanqing, and Soochow New Trend Value Line, also managed by Liu Yuanhai, were among the top five active equity products in terms of income during the year. However, the next day, Taixin Industry Select A/C squeezed out Soochow Mobile Internet A/C, and the development of the Eastern Region once again ranked among the top five in terms of revenue.

Source: Wind

As the end of the year approaches, there may be a variety of reasons for the frequent change of ownership of the top performing products of active equity funds during the year, but the performance of heavy stocks in the next two weeks is particularly critical. Combined with historical data, the New Year's Eve market presents an obvious characteristic of "value on the stage, growth and singing". From this point of view, there is still a possibility of "changing face" in the list of active equity funds in the last two weeks.

The performance of active equity products is significantly differentiated

As of December 15, among the 7,487 active equity funds (shares are calculated separately, the same below), a total of 810 equity funds have achieved positive returns, accounting for only slightly more than one percent, and only 6 products have yields of more than 40%.

These 6 products with an annual performance yield of more than 40% are: Taixin Industry Select A/C, Soochow Mobile Internet A/C, Oriental Regional Development, and Soochow New Trend Value Line, with annual returns of 48.17%, 47.99%, 45.40%, 45.13%, 43.53%, and 42.19% respectively.

China Beijing Stock Exchange Innovative Small and Medium-sized Enterprises Selected Two-Year Fixed Opening, Golden Eagle Technology Innovation A, Golden Eagle Core Resources A, Taikang Beijing Stock Exchange Selected Two-Year Fixed Opening A/C, Golden Eagle Dividend Value A/C, and Thai Merchants Sports, Culture and Leisure A followed closely behind, with a return rate of more than 30% during the year.

As the market enters the countdown stage in 2023, the market has attracted much attention as to who will be the "champion base" of the annual active equity category. Specifically, the ranking of the top fund products on the list that has attracted much attention has always been in a state of stalemate.

Source: Wind

From December 6th to December 8th, Oriental Regional Development, Taixin Industry Select A/C, and Soochow Mobile Internet A/C have all topped the list of active equity funds. Since the beginning of this week, as of December 14, Soochow Mobile Internet A/C managed by Liu Yuanhai, Taixin Industry Select A/C managed by Dong Shanqing, and Soochow New Trend Value Line, also managed by Liu Yuanhai, still firmly guarded the top five active equity products in terms of income during the year. However, the next day, on December 15, Taixin Industry Select A/C squeezed out Soochow Mobile Internet A/C, and the development of the Eastern Region was once again among them.

From February 2004 to June 2015, Liu Yuanhai worked at Soochow Fund Management Co., Ltd., successively serving as researcher, assistant fund manager, fund manager, and deputy general manager of investment management department. In February 2016, he rejoined Soochow Fund Management Co., Ltd. and is currently the general manager of the equity investment headquarters.

It is worth mentioning that compared with the annual performance list of active equity funds at the end of the first three quarters, some of the top performers "fell behind", compared with the end of the third quarter, it can be said that the world has been turned upside down.

Source: Wind

Previously, it had dominated the list for a long time, and the Eastern Regional Development managed by Zhou Siyue was once again in the top five on the active equity list during the year. For another example, Guorong Rongsheng Leading Yanxuan A once ranked among the top five with an annual return of 32.51% at the end of the third quarter, and as of December 15, 2023, the fund ranked 77th with an annual return of 16.71%.

On the list of decliners, China Securities Construction Investment Low Carbon Growth C and China Securities Construction Investment Low Carbon Growth A are at the bottom with a yield of -51.54% and -51.35% respectively. A total of 46 active equity products, including China Securities Construction Investment Low-carbon Growth A/C, AVIC New Voyage A/C, Bank of Shanghai New Energy Industry Select A/C, and GF High-end Manufacturing A/C, fell by more than 40% in net value during the year. Overall, the difference between the performance of active equity products during the year was close to 100%

Year-end uncertainties remain

As the end of the year approaches, there may be a variety of reasons why the performance list of active equity funds changes hands frequently during the year. For example, as market volatility increases, fund performance is influenced by a variety of factors such as the fund manager's investment decisions, investment strategy and risk control level, although it is more likely to come from the performance of heavy stocks.

Liu Yuanhai, manager of Soochow Mobile Internet Fund, believes that the fourth quarter is still relatively optimistic about the investment opportunities in technology stocks represented by AI artificial intelligence, and the adjustment of technology stocks in the third quarter does not mean the end of the global technology innovation cycle and the technology stock market. We are relatively optimistic about the investment opportunities in the following three major directions that will benefit from the development of AI technology: AI computing power and applications, electronic semiconductors, and automotive intelligence. As of the end of the third quarter, the top 10 heavy stocks of Soochow Mobile Internet also biased towards these three directions.

Dong Shanqing, manager of Taixin Industry Select Fund, also said that with the gradual recovery of consumption, industries damaged in the past three years, such as media and cultural tourism, have come out of the upward trend, and its Chinese travel sector, especially companies involved in domestic business, has basically recovered to the level of 2019, and international business is still slowly recovering. In the media sector, companies involved in domestic consumption, such as film and television, also recovered to 2019. The artificial intelligence sector, which rose sharply in the early stage, has seen a certain adjustment as a whole, and the market is waiting for the industry to launch new AI applications.

From the perspective of heavy stocks, the positions of Soochow Mobile Internet A/C and Soochow New Trend Value Line Mix in the third quarter are relatively similar, and the top ten heavy stocks completely coincide, all of which hold Kingsoft Office, Weir Shares, Desay SV, Tianfu Communication, Zhongji Innolight, Shanghai Electric Co., Ltd., Xin Yisheng, Industrial Fortune Union, Zhuosheng Micro, and Lixun Precision.

As of the end of the third quarter, most of the top 10 heavy stocks in Taixin's industry were in the media direction. Its top 10 heavy stocks are Wanda Film, Guangguang Media, China Film, Zhewen Film, Huace Film and Television, Hengdian Film and Television, Ciwen Media, Zhongxin Tourism, Aofei Entertainment, and Huanrui Century. It is worth mentioning that in the list of the fund's top ten heavy stocks, there are a number of short drama concept stocks that have risen significantly recently, and 8 of the 10 heavy stocks are film and television concept stocks. In addition, Zhewen Film and Huanrui Century are the unique heavy stocks of fund manager Dong Shanqing.

In the past two years, the Oriental Regional Development under the leadership of Zhou Siyue has been known for its flexible switching style. In the first quarter, Dongfang Regional Development invested heavily in TMT, continuing the position structure dominated by information innovation and digital economy in the fourth quarter of last year, and in the second quarter, it quickly switched its main track and began to bet heavily on liquor, and in the third quarter, it implemented the defensive idea and did not adjust the position structure dominated by liquor at the end of the second quarter.

As of the end of the third quarter, the top ten heavy stocks in the development of the Oriental region were Shanxi Fenjiu, Gujing Gongjiu, Luzhou Laojiao, Kweichow Moutai, Jinshiyuan, Yingjiagongjiu, Yanghe Shares, Shede Liquor, Kouzijiao, and Shuijingfang, with the top ten holdings accounting for a total of 63.36% of the net value. Recently, the overall trend of liquor stocks is weak, which is expected to pose a certain drag on the net value of the development of the eastern region.

Overall, although there are still uncertainties about who will win the annual performance championship, we can also get a glimpse of the future trend from the top 10 heavy stocks of these champion candidate funds.

Previously, China Asset Management pointed out based on data that historically, the New Year's Eve market showed obvious characteristics of "value on the stage, growth and singing". Finance, cyclical, and consumption performed steadily in the fourth quarter, all of which were the best among the four quarters of the year, and the performance of the growth style in the fourth quarter was second only to the first quarter. It can be seen that the fourth quarter is often a better layout window for the whole year. In addition, in the year-end market, low-valuation sectors tend to perform better than high-valuation sectors, outperforming stocks are better than loss-making stocks, and large-cap stocks are better than small-cap stocks, and there is often a reversal effect at the beginning of the year.

From this point of view, there is still the possibility of "changing face" in the list of active equity funds in the last two weeks.

This article originated from the Financial Associated Press reporter Li Lvjia