Exponents
Q1
To summarize briefly,
What is AXA SPDB CSI A50 Index Enhanced Fund?
SPDB AXA A50 Index Enhanced Fund is the first product in the market to actively help investors screen high-dividend, high-growth and high-ROE assets on the basis of tracking the CSI A50 Index. This means that in addition to sharing the excellent underlying genes of the A50 Index, the Fund also has the support of AXA's professional capabilities in the field of index enhancement, and strives to increase performance through quantitative models.
Q2
The underlying assets of the product
——What is the CSI A50 Index?
The CSI A50 Index (930050.CSI) selects the stocks with the largest free float market value in each CSI tertiary industry, and retains the 50 stocks with the largest market capitalization as constituent stocks to reflect the overall performance of the most representative securities of leading listed companies in each industry. The index is no longer the traditional model with the largest market capitalization, but includes 50 tertiary industries, with wide coverage and high dispersion. At the same time, the leading attributes are distinct, and strive to achieve a balanced distribution in the industry distribution.
Q3
There are many selected "50" leading indices in the market,
Compared with other 50 indices, the CSI A50 Index
How has the history been?
In the long run, the CSI A50 Index performs better when the annualized volatility is roughly the same.
Source: Wind, 2015.1.1-2024.4.18
Source: Wind, statistical period: 2021/01/1-2024/01/1; The market is risky, and investors need to be cautious.
Q4
What is the dividend paying ability of the constituent stocks of the CSI A50 Index?
As the CSI A50 Index is home to the largest performers in various industries by market capitalization, its constituent stocks have been relatively stable for a long time, and the historical dividend payout ratio is usually higher than 30%. At the end of 2023, the average dividend yield of the index was 2.7%, and the average dividend payout ratio in FY2022 was 42.4%, both significantly higher than the overall market level. In addition, more than 70% of the sample companies have paid dividends for 10 consecutive years, reflecting a high level of dividend sustainability. The enhanced strategy selection is expected to further improve the level of portfolio weighted dividend yield. (Data source: Wind, as of April 23, 2024, the past dividend levels of the constituent stocks do not constitute a prediction or guarantee of future behavior, and the data is for reference only and does not constitute a recommendation of the underlying securities.) The market is risky, and investors need to be cautious. ）
Q5
What is the industry distribution of the CSI A50 Index?
The A50 covers 50 CSI Level 3 industries, and the three major industries are food and beverage, power equipment, and medicine and biology. In addition to traditional industries, the index also covers some sub-sectors of emerging industries, such as data centers and semiconductor equipment. Since the MSCI A50 and SSE 50 only cover 29 CSI Level 3 industries, the CSI A50 is more widely distributed and more representative of the overall trend of China's high-quality economic development.
Chart: CSI A50 Index Wind Level 3 Industry Distribution, Data Source: Wind, 2024.4.23, The industries mentioned above are for example only and do not constitute any investment advice.
Q6
What are the heavy stocks in the CSI A50 Index and what is the concentration?
The largest weights in the top 10 heavy stocks are Kweichow Moutai, CATL and Ping An of China, with a total weight of more than 50% in the top 10 heavy stocks, and the top weights are relatively concentrated. However, compared with the SSE 50, the top 10 heavy stocks of the CSI A50 span the Shanghai and Shenzhen stock exchanges, including the main board and the ChiNext market, taking into account the attributes of stable growth and new quality productivity.
Source: Wind, 2024.4.23, the industries mentioned above are for example only and do not constitute any investment advice.
Market
Q7
From the perspective of the market environment,
Is now a good time to invest in equity assets?
After nearly three years of adjustment, the price-to-earnings ratio and price-to-book ratio of the A-share market are at the lowest level in recent years. At present, the overall PE of the Shanghai Composite Index is 13.19 times, which is at the historical 20.9% percentile. This means that the current stock price is relatively undervalued, providing investors with a higher margin of safety and greater odds.
Focusing on the CSI A50 Index, 35 of its 50 constituent stocks are currently valued below the historical 50% percentile, highlighting the investment value. (Source: Wind, as of 2024/4/23)
Q8
From a policy point of view, the recent introduction of the "National Nine Articles".
What is the impact on the core assets represented by the CSI A50 Index?
The new "National Nine Articles" have made stricter requirements for the management of dividends, repurchases, and market value of listed companies. In the long run, it is expected that listed companies will increase the dividend ratio as a whole, and increase the market's expectation of returns for A-share leading companies. With the advancement of the annual report disclosure period, the value of the allocation of leading companies in high-performing industries with stable free cash flow, relatively generous dividends and excellent profitability may begin to appear, and the leading index represented by CSI A50 may obtain favorable support from the policy side.
Enhancement Strategy
Q9
There are already some A50 ETFs and their feeder funds in the market.
Why should index enhancement strategies be worth paying attention to?
SPDB AXA CSI A50 Index strengthened
What are the unique highlights?
The AXA SPDB CSI A50 Index strengthens the portfolio of assets selected from the constituent stocks of the index, and on this basis, pursues performance enhancement through index quantification. The company's index quantification team has more than 13 years of experience in index and quantitative product management, adheres to a multi-strategy quantitative investment framework, and pursues diversified sources of excess returns, including asset allocation, timing, multi-factor, event-driven and alternative strategies.
Judging from past performance, the SPDB AXA CSI 300 Index, the representative product of proposed fund manager Luo Wen, has achieved a significant enhancement effect in history. Since its inception on December 10, 2010, the share of class A of the fund has been 55.34% of the CSI 300 Index and 4.01% of the Super Profit Index in 2023, which has been effectively enhanced.
(Source: Fund Periodic Report, Wind, as of December 31, 2023.) During the period from 2010.12.10 to 2023.12.31, the share of fund class A increased by 65.19%, the benchmark increase of 26.40% over the same period, and the CSI 300 increase of 9.85% over the same period, and the share of class A of the fund increased by -7.37% in 2023, the benchmark increase of -9.91% over the same period, and the increase of CSI 300 by -11.38 in the same period. In the same period, the Class C share was established less than six months ago, so the performance is not displayed. ）
The enhanced A/C shares of AXA SPDB CSI 300 Index were established on 2010.12.10/2023.8.28 respectively, with a risk level of R3-medium risk. The performance comparison benchmark is the return rate of the CSI 300 Index ×95%+1% (refers to the annual rate of return, which is converted according to the cumulative number of days in the period). According to the fund's regular report, the returns of Class A shares from 2019 to 2023 are 43.75%, 38.38%, -2.02%, -23.75%, and -7.37%, respectively, and the benchmark increases are 35.46%, 27.11%, -3.91%, -19.80%, and -9.91%. Class C shares have not yet had full annual results. According to the Q1 2024 report, as of March 31, 2024, the Class A/C share has returned 72.26%/-3.05% since its inception, and the performance benchmark has increased by 30.46%/-4.87%.
Q10
What are the index enhancement strategies of AXA SPDB Index Quantitative Team?
Multi-factor model: Construct a basic factor library and select an investment factor pool under the premise of low correlation. At the current point in time, the CSI A50 has a large number of effective factors in terms of low-frequency price, high-frequency price and growth factors, and few effective factors in terms of quality and valuation.
Industry rotation model: Shenwan's first-level industries are classified into 7 major sectors, namely technology, midstream, large consumption, essential consumption, infrastructure, finance, and cycle, and industry rotation is carried out under the premise of neutral large plates.
Event-driven model: Since some event-based investment opportunities occur regularly throughout the year, this model takes the event as the trigger to invest in related thematic stocks to strive for relative returns.
Risk Warning: Funds are risky, and investment should be cautious. The fund manager promises to manage the fund assets diligently and responsibly in accordance with the principle of integrity and rigor, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. Past performance of the Fund is not indicative of its future performance and does not constitute a guarantee of investment income or investment advice. Mainland funds have been in operation for a relatively short period of time and do not reflect all stages of market development. To understand the details of the fund, please be sure to carefully read the "Fund Contract" and "Prospectus" and other legal documents. If you need to purchase funds, please pay attention to the relevant regulations on investor suitability management, do a good risk assessment in advance, and purchase fund products with matching risk levels according to your own risk tolerance. The opinions and comments provided in this material are for informational purposes only and do not constitute any operational advice or recommendation of the securities mentioned. The opinions expressed in the material are current and for informational purposes only. The industries mentioned above are for example only and do not constitute any investment advice, the fund is risky and investment should be cautious. The views expressed in the materials are personal and do not represent the position of the company, are not intended as investment advice, and are time-sensitive and for reference only.