The "old ten" Dacheng Fund has another product liquidation, when will the "left behind" label be torn off?

"Investor's Network" Cui Yuechen

Another fund product under Dacheng Fund is facing liquidation.

According to the announcement on the official website of Dacheng Fund, its product Dacheng Hengxiang Chunxiao One-year Regular Open Hybrid Securities Investment Fund entered the liquidation period on February 20, 2024 due to the triggering of the contract termination clause, and the liquidation ended on March 6, 2024, after the disposal of assets and the settlement of liabilities, the remaining property of 15.2491 million yuan will be distributed according to the proportion of the fund shares.

As for the reason for the liquidation, the announcement shows that on the last day of the latest open period, the net asset value of the fund on that day plus the net subscription amount or minus the net redemption amount was less than 50 million yuan, so it was liquidated in accordance with the contract, and there was no need to convene a general meeting of fund share holders.

It is worth mentioning that this is not the first time that Dacheng Fund has been liquidated. In the first half of last year alone, six fund products were liquidated.

Founded in 1999, Dacheng Fund is one of the first 10 public offering companies in China and is headquartered in Shenzhen. Compared with other "old ten" public funds, the development of Dacheng Fund is relatively slow. According to Wind data, as of the end of 2023, the management scale of Dacheng Fund ranks 9th among the "Old Ten", only higher than Changsheng Fund, and compared with Huaan Fund, which ranks 8th, the difference in scale is nearly 340 billion yuan.

The liquidation of many products is only the appearance of the problem, and the deep-seated reasons behind it are all related to the operation and management level of the fund manager.

Closed-end fund manager leaves

In July last year, Xie Jiale, a fund manager known as a "growth stock hunter", left Dacheng Fund after nine years.

Before leaving, the two-year fixed-opening hybrid of the Dacheng Beijing Stock Exchange managed by him was still in a two-year closed period, and Xie Jiale stepped down when the people could not redeem it, leaving Zhu Qian, the fund manager who managed the fund in June last year, to manage it alone. This operation caused dissatisfaction among the people.

Zhu Qian's performance was mediocre, and in less than a month after the takeover, the annualized loss exceeded the loss during Xie Jiale's management. According to the daily fund network, the fund is still managed by Zhu Qian, and the current return on office is about -7%.

Not only that, Xie Jiale also bought two stocks with declining performance before leaving, and was accused of taking over for others.

He first bought Dayu Biotech (871970. BJ) 1.2 million shares, accounting for 1.12% of the total holdings. According to public information, in the first two quarters of last year, the company's net profit was 3.007 million yuan and 6.0673 million yuan respectively, down 133.65% and 177.35% year-on-year respectively. In 2022, the company achieved revenue of 157 million yuan, down 12.28% year-on-year, and net profit attributable to shareholders of the parent company of 18 million yuan, down 48.24% year-on-year.

Subsequently, Tianma New Materials (838971. BJ) 505,000 shares, accounting for 1.03% of the total position. The company's revenue and net profit in the past three years have almost all been negative.

The strategy of building a position in these two stocks is different from that of the two-year fixed opening hybrid of the Dacheng Beijing Stock Exchange.

The fund has stated in its investment strategy that it will combine the fundamentals of the company with the fundamental conclusions of the stock valuation analysis to select stocks with competitive advantages and attractive valuations. The fund manager will carefully select and weigh the risk-return characteristics in accordance with the company's investment decision-making procedures, and then construct a stock portfolio and make dynamic adjustments according to market fluctuations.

According to the Tiantian Fund Network, as of December 31, 2023, the scale of the two-year fixed opening hybrid of the Dacheng Beijing Stock Exchange is 55 million yuan, with a loss of 14.18% since the beginning of this year, ranking 3853/4143 in the same category.

Frequent changes of fund managers for the same product

In the past few years, the scale of new products issued by Dacheng Fund has shown a "cliff-like" decline.

Wind data shows that in 2021, Dacheng Fund issued 28 new products, with an issuance scale of about 44.909 billion yuan from 41 billion yuan in 2020, the number of new products decreased to 25 in 2022, and the issuance scale further decreased to 24.824 billion yuan, and 9 new products were issued in the first three quarters of 2023, with an issuance scale of about 4 billion yuan.

Not only that, Dacheng Fund also exposed the problem of frequent replacement of fund managers of the same product. For example, Dacheng Xingxiang Balanced Pension (FOF), which has changed three fund managers since its inception in June 2020.

The first fund manager, Shang Qiong, was managed from June 17, 2020 to August 2, 2021, and then the fund hired Lu Su as the fund manager, and on August 2, 2022, Shang Qiong left, and Lu Su managed the product alone. On April 19, 2023, Wu Han was hired as the fund manager, and on April 27, Lu Su resigned and was managed by Wu Han alone.

In fact, the frequent change of fund manager did not bring new growth to the fund. According to the daily fund website, on June 20, 2023, the fund was liquidated because the net asset value was always less than 200 million yuan, triggering the termination clause of the FOF fund contract.

The same fund product frequently changes fund managers, and similar situations are not uncommon in Dacheng Fund, but even so, it has not changed the fate of multiple funds being liquidated.

Can newcomers turn the tide?

Up to now, Dacheng Fund has 47 fund managers, but all of them seem to have mediocre performance, and there are only a handful of fund managers with outstanding performance. For example, the performance of veterans Xu Yan, Wang Lei and others is acceptable, but there is a situation of "one drag more", with more than 15 products under management per capita, and there is a lack of skills.

"Investor.com" noted that with the launch of new products this year, Dacheng Fund has hired a number of additional fund managers.

According to the statistics of "Investor.com", the new fund managers with better overall performance include Liu Chuanyi, Huang Tao and Liu Wang.

According to the daily fund website, Liu Chuanyi joined Dacheng Fund on December 7, 2023, with a cumulative tenure of 125 days, a total asset size of 5.762 billion yuan in fund assets under management, and the best rate of return during his tenure was 2.67%. Prior to that, he served as a trader in the financial market department of Zheshang Bank, a senior trader in the capital operation center of Xiamen Bank, and the deputy general manager of the financial market department of Zhangjiagang Rural Commercial Bank.

Huang Tao joined Dacheng Fund on January 3, 2024, with a cumulative tenure of 98 days, a total asset size of 1.161 billion yuan in funds under management, and the best rate of return during his tenure was 4.63%. Prior to that, he was a researcher at GF Securities Development Center and a researcher at the Asset Management and Equity Department of China Merchants Securities.

Liu Wang, appointed as a fund manager on January 2, 2024, has a total asset size of 312 million yuan in funds under management, and the best rate of return during his tenure is 5.01%. Liu Wang joined Dacheng Fund Management in May 2018 and served as a researcher and assistant fund manager in the index and futures investment department.

With the addition of newcomers, Dacheng Fund continues to issue new fund products, and it seems that it wants to break the rhythm of the decline in the scale of issuance.

In the future, whether Dacheng Fund can improve the status quo, bring the management scale back to the upward track, and revitalize the style of the "old ten", "Investor.com" will continue to pay attention. (Produced by Thinking Finance)■