On April 17, Ruiyuan Fund's products disclosed the first quarter report of 2024.
Compared with the holdings at the end of 2023, the Ruiyuan Growth Value Mixed Fund managed by Fu Pengbo and Zhu Lan increased its holdings in the first quarter of 2024 in turn, including Tencent Holdings, Luxshare Precision, Guanghui Energy, Myway and Sino Biotech, and reduced its holdings in China Mobile, CATL, Tongwei, Wanhua Chemical, and Oriental Yuhong.
Ruiyuan Balanced Value, managed by Zhao Feng, another star fund manager of Ruiyuan Fund, was held for three years, and slightly increased its positions in CATL, Wanhua Chemical, Weiming Environmental Protection, Meituan, and China Property and Casualty Insurance in the list of the top 10 new heavy stocks, and reduced its positions in China Mobile, Tencent Holdings, Sieyuan Electric, Sinobio and China Resources Beer.
However, the above-mentioned fund products performed poorly in the first quarter, not only did they all underperform the benchmark, but the net value of the Ruiyuan Growth Value Mixed Fund fell by more than 7%.
On January 29, 2024, Ruiyuan Fund purchased 50 million yuan each for three years from its Ruiyuan Growth Value and Ruiyuan Balanced Value.
"Throughout the first quarter, the share prices of companies with low valuations and high dividends remained stable. Zhao Feng pointed out that the implied return level of the excellent targets is still attractive, and a group of small and medium-sized companies with higher valuations have experienced a round of risk release, but their valuation levels are still difficult to say reasonable due to the lack of business models and corporate competitiveness of most of them.
Looking ahead to the second quarter, Fu Pengbo and Zhu believe that there are still some structural opportunities in the A-share market, and the valuation level of the sector index is still below the historical average. With the disclosure of the annual reports and first quarterly reports of listed companies, the improvement of fundamentals and economic changes in the second quarter may have a stronger and clearer guiding effect on the annual investment.
Tencent returned to the top 10 positions of Fu Pengbo and Zhu Lan
As of the end of the first quarter of 2024, the net asset value of Ruiyuan Growth Value Mixed Fund was 18.813 billion yuan, a decrease of 1.983 billion yuan, or 9.54%, from 20.796 billion yuan at the end of 2023.
Specifically, the top 10 heavy stocks of Ruiyuan Growth Value Mixed Fund are: China Mobile (00941. HK), CATL (300750. SZ), Lixun Precision (002475. SZ), Tencent Holdings (00700. HK), Tongwei Co., Ltd. (600438. SH), Guanghui Energy (600256. SH), Maiwei Co., Ltd. (300751. SZ), Wanhua Chemical (600309. SH), Sinocare Biotech (300298. SZ), Dongfang Yuhong (002271. SZ）。
Compared with the positions at the end of 2023, Fu Pengbo and Zhu Ling increased their holdings in Tencent Holdings, Luxshare Precision, Guanghui Energy, Myway and Sinocare Biotech in the first quarter of 2024. Among them, since the end of June 2019, Tencent Holdings has once again entered the list of the top 10 heavy stocks of Ruiyuan Growth Value Mix.
In terms of position reduction, Ruiyuan Growth Value Mix also reduced its holdings in China Mobile, CATL, Tongwei Shares, Wanhua Chemical, and Oriental Yuhong.
From the perspective of fund performance, Ruiyuan Growth Value Mix significantly underperformed the performance benchmark for the same period.
As of the end of the first quarter, the net value of Ruiyuan Growth Value Mixed A Fund was 1.0873 yuan, during the reporting period, the growth rate of the net value of this type of fund was -7.36%, and the benchmark rate of return was 1.13% for the same period, and as of the end of the first quarter, the net value of Ruiyuan Growth Value Mixed C Fund was 1.0657 yuan, and the growth rate of the net value of this type of fund was -7.45% during the reporting period, and the benchmark rate of return for the same period was 1.13%. All of them underperformed the benchmark by a wide margin.
Source: Produced by The Paper reporter based on Wind data
Fu Pengbo and Zhu Ling said in a quarterly report that in terms of macroeconomy, judging from the economic data released in the first two months, exports have improved, and the prosperity of related manufacturing industries has rebounded. During the festival, residents' travel and consumption recovered, driving the prosperity of the service industry. Data from the real estate and construction industry chain show that real estate sales are still weak, and infrastructure investment is weaker than expected under the pressure of debt resolution. Real GDP is likely to achieve good growth in the first quarter. Compared with the 2023 scenario of "higher expectations, weaker reality", the market has lowered its expectations this year, and the actual situation may not be bad.
"From January to February, the CPI rebounded, but the PPI fell into the negative growth range, a slight improvement compared with the fourth quarter of last year. Fu Pengbo and Zhu pointed out that in the case of general redundancy in the industry's production capacity, enterprises need to exchange price for volume to maintain and increase market share, and it is not easy to improve PPI, but when positive signals appear, or corresponding to the improvement of corporate earnings. Referring to the performance in 2023, in the context of abundant liquidity, the improvement of corporate earnings is a necessary condition for the upward movement of the market operation center.
In terms of market performance, Fu Pengbo and Zhu said that in the first quarter, the A-share market first adjusted sharply and then rebounded rapidly, and the overall style of large-cap indices was superior. The good performance of the sub-sectors is concentrated in two categories, either resources such as coal, non-ferrous metals and oil, or artificial intelligence and other new economy categories. The performance of state-owned enterprises and central enterprises with higher dividend payout ratios and market value assessment expectations is relatively outstanding. Other sectors, such as pharmaceuticals and real estate, performed poorly.
In the first quarter, Ruiyuan Growth Value Mixed Fund still maintained a high position. Fu Pengbo and Zhu Lin explained, "We have made certain adjustments to our positions, mainly reducing our holdings of some of the top 20 companies with net worth, adding some companies that benefit from the growth of the export chain and benefiting from the replacement of equipment from the bottom up, and at the same time increasing the allocation of Hong Kong stocks. ”
Looking ahead to the second quarter, Fu Pengbo and Zhu believe that there are still some structural opportunities in the A-share market, and the valuation level of the sector index is still below the historical average. With the disclosure of the annual reports and first quarterly reports of listed companies, the improvement of fundamentals and economic changes in the second quarter may have a stronger and clearer guiding effect on the investment of the whole year. They will continue to dynamically adjust their portfolios, explore new investment targets, and select companies with reasonable valuations, high growth certainty, and endogenous stable growth to continuously generate cash flow.
Zhao Feng bought China P&C Insurance for the first time
Ruiyuan Balanced Value, managed by Zhao Feng, another star fund manager of Ruiyuan Fund, has been held for three years, and its equity position has decreased in the first quarter of 2024, but it still maintains a high position operation, with a stock position of 89.85% at the end of the first quarter.
As of the end of the first quarter of 2024, the net asset value of Ruiyuan Balanced Value Three-Year Holding Fund was 11.830 billion yuan, a slight decrease of 3.19% from 12.220 billion yuan at the end of 2023.
Specifically, the top 10 heavy stocks of Ruiyuan Balanced Value Three-year Holding Fund are: China Mobile, CATL, Sieyuan Electric (002028. SZ), Wanhua Chemical, Weiming Environmental Protection (603568. SH), Sinocare Biotech, China Resources Beer (00291. HK), Meituan-W (03690.HK), China Property & Casualty Insurance (02328. HK）。 Among them, the top 10 heavy stocks accounted for 54.46% of the fund's net value.
In terms of increasing holdings, Ruiyuan Balanced Value held a small increase in CATL, Wanhua Chemical, and Weiming Environmental Protection in the first quarter, increasing its holdings by 3.23%, 5%, and 1.45% quarter-on-quarter.
When the surging news reporter checked all the holdings data disclosed by the fund in the past, he found that Zhao Feng bought China Property Insurance for the first time and bought it into the top ten heavy stocks, which shows his recognition of the company.
In terms of reducing holdings, Zhao Feng reduced his positions in China Mobile, Tencent Holdings, Sieyuan Electric, Sino Biotechnology and China Resources Beer in the first quarter. It is worth mentioning that since the third quarter of 2022, Zhao Feng has not increased his position in China Mobile, and has maintained a state of reducing or unchanged positions, but at the same time, China Mobile has been at the top of the top ten heavy stocks for 11 consecutive quarters.
From the perspective of fund performance, as of the end of the first quarter, the net value of Ruiyuan Balanced Value held a mixed A fund share of 1.1476 yuan for three years, during the reporting period, the growth rate of the net value of this type of fund share was 0.91%, and the benchmark rate of return for the same period was 2.03%; As of the end of the first quarter, the net value of Ruiyuan Balanced Value held a mixed C fund share for three years was 1.1335 yuan, and the net value of this type of fund share increased by 0.84% during the reporting period, and the benchmark rate of return for the same period was 2.03%. Neither of them has been able to outperform the benchmark.
Source: Produced by The Paper reporter based on Wind data
Looking back on the first quarter, Zhao Feng said in the quarterly report that in the first quarter, the two markets showed a bottoming out trend. Before the Spring Festival, a number of small and medium-cap stocks in the A-share market fell sharply, driving greater fluctuations in market sentiment.
Throughout the first quarter, the stock prices of low-valuation, high-dividend companies remained stable, and Zhao Feng believes that the implied return level of the excellent targets is still attractive, while a group of small and medium-capitalization companies with higher valuations have experienced a round of risk release, but their valuation levels are still difficult to say reasonable due to the lack of business models and corporate competitiveness of most of these companies.
"Affected by the overseas macro environment, resource stocks represented by gold and copper rose significantly in March. Our shareholding structure is relatively balanced, and the overall valuation level of the portfolio is low, and the net performance is relatively stable in the process. Zhao Feng said.
"Our view of the economy and the market in the first quarter tended to be positive. For the logic of the conclusion, Zhao Feng explained, first, the valuation of many companies has been very attractive, even if the future economic and earnings growth slowdown, their potential return level has far exceeded other assets; second, the market sentiment is extremely pessimistic, investor expectations have basically bottomed out; third, as of February 2024, all industrial PPI has been declining year-on-year for 17 consecutive months, social inventories have been continuously compressed, at a low level, with the support of macro policies and the recovery of demand, the economy and company fundamentals are likely to pick up in the future。
Based on the judgment of the future and the market situation, Zhao Feng made some adjustments to the portfolio, reducing the holdings of companies related to fixed asset investment, as well as companies with unattractive static valuations and difficult future growth judgments, and increasing holdings of some new energy companies with attractive valuations, as well as companies with low valuations and predictable stable fundamentals.
Zhao Feng said that in the recent annual report exchanges of listed companies, more and more companies said that they would control the speed of expansion, shrink loss-making business lines, and pay more attention to the balance between revenue growth and profitability. "We expect that as demand growth slows, listed companies will be more rational about expansion and will pay more attention to profitability and shareholder returns, which will improve the quality of earnings and returns of Chinese listed companies. ”