Since the beginning of this year, with the ups and downs of the market and the rotation of plate differentiation, the valuation attractiveness of the A-share market has been highlighted in the continuous shock and grinding of the bottom. Wind data shows that as of the end of November this year, the CSI 300 has been less than 15% lower than the current price-earnings ratio TTM in the past 10 years, and the ChiNext index price-earnings ratio TTM is less than 1% lower than the current time. Market analysts pointed out that the current risk appetite is not high, the difference between stocks and bonds is low, since August favorable policies have been launched to stimulate further economic recovery, the performance of the equity market in the future is worth looking forward to. In this context, ChinaAMC Zhaoxin Hongrui Hybrid (Class A: 018730, Class C: 018731), which focuses on small and medium-cap high-boom growth stocks, will be officially launched from December 11 to help investors capture important opportunities in growth style.
Looking back at history, the trend reversal of A-shares usually shows the trend of policy force, market bottoming, and economic rebound. In the past six rounds of market cycle transformation, policy efforts have often been ahead of the market to bottom. The above-mentioned analysts further pointed out that a series of favorable policies since the end of August are essentially a strong confirmation of the bottom of the policy, and the current policy intensive window period is ushering in at the end of the year.
In recent years, the A-share market has undergone changes in style, which has brought great challenges to equity investment, and it has become a litmus test for high-quality products to continue to create excess returns when the style is unfavorable. In a market environment where many investors are chasing "core assets", Zhong Shuai of ChinaAMC still adheres to the growth investment framework of exploring "potential white horses" from the bottom up, and still achieves great returns after market tests. As of September 30 this year, since he became a fund manager on July 28, 2023, the cumulative rate of return has been 63.19%, and the annualized rate of return has exceeded 16% since his tenure, exceeding the benchmark rate of return of 74.73% over the same period, and the net value growth in the past three years has been 56.47, ranking among the top 1% of the same category. At the same time, it was rated as a three-year and five-year five-star fund of Galaxy, Haitong and Morningstar.
Zhong Shuai, who has 11 years of experience in the securities industry, focuses on the growth style of small and medium-sized market capitalization, deeply cultivates industrial chain research, does not bet on a single track, selects subdivided industries with excess returns, and has deep accumulation in the industrial chain of new chemical materials, photovoltaics, new energy vehicles, semiconductors, consumer electronics, military machinery, etc., and is constantly expanding the circle of competence in the long-term investment accumulation. According to the disclosure data of the fund's third quarterly report, as of the end of the quarter, the top ten heavy stocks in the China industry accounted for about 35%, far lower than the industry average. This balanced allocation strategy has become an important source of stable excess returns for the portfolio.
The proposed China Zhaoxin Hongrui Mix, which is planned to be led by him, accounts for 60%-95% of stock investment, and the proportion of stock investment in Hong Kong Stock Connect is 0-50% of stock assets, which will continue its previous investment philosophy. In the investment management after the establishment of the fund, ChinaAMC Zhaoxin Hongrui Mixed will focus on the absolute return target, that is, to take the bottom-up mining of individual stocks in the boom industry, select the left side of the target with low valuation, focus on valuation and growth, and strive to create excess returns through stock selection. The reason for choosing the bottom-up investment strategy, Zhong Shuai said that only the productivity creation brought about by technological innovation and the improvement of production efficiency brought about by the improvement of production relations are the real source of wealth creation.
As an industry-leading all-round asset management company, ChinaAMC has 25 years of investment management experience, and various products have created sustainable and stable returns. As of the end of September 2023, ChinaAMC's public offering products have made a cumulative profit of 213.8 billion yuan for customers and a cumulative dividend of 214.6 billion yuan, making it the first fund company in China to have a cumulative dividend of more than 100 billion yuan. In the field of active equity investment, the investment and research system of ChinaAMC has formed a platform-based, systematic and professional research team, a multi-strategy, multi-style and all-weather investment team, a comprehensive, forward-looking and scientific product system, and an evolving intelligent investment and research support system. As of the end of the third quarter of this year, the CSI 300 has risen and fallen by -20.19% in the past three years, while the cumulative return of ChinaAMC's active equity products has reached 0.93%, ranking among the top in the industry, significantly surpassing the CSI 300 and other representative indices, and achieving excellent historical performance.
Data source: The performance data comes from ChinaAMC Fund, reviewed by the custodian bank, on September 30, 2023, the benchmark for the performance of ChinaAMC's industry prosperity is the yield of the CSI 300 Index * 80% + the yield of the SSE Treasury Bond Index * 20%. The performance (benchmark performance) of the full fiscal year (2018-2022) since the establishment of the product is: -12.15% (-19.66%), 29.7% (29.43%), 73.36% (22.61%), 84.11% (-3.12%), -21.37% (-16.86%), and Zhong Shuai has been managing since July 28, 2020. Ratings are derived from Galaxy Securities, Haitong Securities, Morningstar, the same kind are Galaxy Securities: Partial Equity Fund (60%-95% upper and lower limit of stocks) (Class A), Haitong Securities: Active Mixed Open-Strong Stock Hybrid, Morningstar: Active Allocation - Small and Mid Cap, ranking from Haitong Securities, Haitong Securities ranking is classified as Active Mixed Open-Strong Stock Hybrid, as of 2023.10.31. Past performance of a fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund.
Investors should read the "Fund Contract", "Prospectus" and other legal documents of the fund to understand the risk-return characteristics of the fund, and judge whether the fund is suitable for the investor's risk tolerance according to their own investment objectives, investment period, investment experience, asset status, etc. This article does not constitute personal investment advice, and users should consider whether any opinions, views or conclusions contained therein are appropriate to their particular circumstances. Funds are risky, investment should be cautious, please make independent judgment and decision-making.