When the major A-share indices are close to the highs of the year, the performance of public funds is also continuing to pick up. After three years of sadness and disappointment, many loss-making people finally saw a rebound in their account net value this year. Although most active equity fund holders still have a lot of room to return on their capital, the hope of a rebound in fund accounts has been rekindled.
Combing the performance of the fund, it is not difficult to find that some top fund managers have finally made a "turnaround" this year, and after three consecutive years of losses, the net value of the fund has begun to gradually repair the early drawdown. However, the latest net value of the products managed by these top fund managers is still 20% to 50% away from the historical high of the net value of the products. Although the "joy" brought by the performance recovery in only four months this year is slightly insufficient compared with the "pain" caused by the long-term continuous losses, the impact is more to enhance investors' confidence in the market.
Top fund manager performance "blood back"
After three consecutive years of losses, the CSI 300 index has opened low and moved high this year, and most of the time it is in the rising range. Correspondingly, the performance of active equity funds has also continued to improve.
Wind data shows that the large-cap value fund index and the large-cap balanced fund index both achieved positive returns during the year.
From 2022 to 2023, the performance of public funds will generally decline, and the most representative Wind Partial Equity Mixed Fund Index will lose 21% and 13.52% respectively in the past two years. In the time when the investment performance is "mud and sand", many top fund managers are considered to have stepped down from the "altar", and the fund performance has seen a huge drawdown, the investment strategy has failed, etc., facing the test of "headwind period".
Fortunately, some top fund managers have finally ushered in a "tailwind period" of investment this year after consecutive losses for many years, and the fund products under their management have gradually repaired the early drawdown.
Among the active equity funds with a scale of more than 10 billion yuan, half of the fund products have achieved positive returns this year. For example, the Dongfanghong Qiheng Three-Year Holding Fund managed by Zhang Feng, the Yinhua Wealthy Theme Fund managed by Jiao Wei, the E Fund Consumer Industry Fund managed by Xiao Nan, and the CEIBS Times Pioneer managed by Zhou Weiwen achieved good returns of 16.81%, 12.63%, 8.74% and 7% respectively this year.
The maximum drawdown of the three-year holding fund managed by Zhang Feng has been close to 40% since 2021, and it has achieved a positive return of 16.81% this year, repairing the annual loss of 16.05% in 2023, and the latest net value of the fund product has narrowed to 26.66% from the highest position in history.
Although the "joy" brought by the performance recovery in only four months this year is slightly insufficient compared with the "pain" caused by the long-term continuous losses, the impact is more to enhance investors' confidence in the market.
Some fund products that have been established for a short time and are led by top fund managers have even been completely repaired and withdrawn, and holders have achieved profits.
Launched in March 2022, the Southern Development Opportunities One-Year Holding Fund managed by Luo Shuai and Fan Jiarong created the largest drawdown in history of nearly 30% since its inception at the beginning of the year. The fund manager seized the opportunity of the rebound at the bottom of the A-share market and achieved a good performance of 24.6% during the year, and the latest net value of the fund unit returned to more than 1 yuan.
The Harvest Value Creation Three-Year Holding Fund managed by Tan Li was also established in March 2022, achieving a good performance of 16.22% during the year, and the latest net value of the fund unit returned to more than 1 yuan on April 26, and the accounts of fund holders were profitable.
When the fund repair drawdown is in progress
Since the beginning of this year, as the macro data has shown signs of stabilization and rebound, the market has gradually come out of pessimism, and the A-share market has basically recovered its January decline. Since the beginning of this year, the Shanghai Composite Index has risen 3.82%, close to a new high this year, the Shanghai Composite 50 Index, which represents the large-cap style, has risen 5.83%, and the ChiNext Index, which represents the growth style of small and medium-cap caps, has fallen by 3.58%, with a clear differentiation between large and small cap styles.
Mutual fund heavy stocks have generally rebounded sharply this year. For example, among the top 20 listed companies in the market value of public funds, only Kweichow Moutai, Mindray Medical, Luxshare Precision and China Micro Corporation fell in stock prices during the year, while Zhongji Innolight, Zijin Mining, Haier Smart Home, North Huachuang, Midea Group, CATL, China Merchants Bank, etc. all rose by more than 20% during the year.
As we all know, the top fund managers prefer the core assets and value stocks represented by the "Mao Index", and with the sharp rebound of the fund's heavy stocks, the performance of public fund-related products has rebounded significantly this year, especially the top fund managers with large management scale.
The data shows that half of the active equity funds that have lost money for three consecutive years (2021-2023) have achieved positive returns this year.
After three years of losses, the CEIBS Ruifeng Fund managed by Lu Chunqing achieved a positive return of 21.65% this year, and the GF Shanghai-Hong Kong-Shenzhen New Start Fund managed by Li Yaozhu, the Southern Performance Growth managed by Shi Bo and Luo Shuai, the E Fund Ruiheng Fund managed by Xiao Nan and Wang Yuanchun, the Harvest Value Discovery managed by Tan Li was fixed for three months, the Yinhua Wealthy Theme managed by Jiao Wei, and the Southern Cheng'an Preferred Fund managed by Zhang Hui all achieved positive returns of more than 10% this year.
Nearly 300 active equity funds have covered losses in 2023 with their earnings this year. For example, Wanjia Zhenxuan managed by Mo Haibo achieved a positive return of 15.5% this year, covering a loss of 15.25% in 2023. Han Chuang of Dacheng Fund, Yuan Hang of Penghua Fund, Zeng Hao of Bosera Fund, Yu Guang of Invesco Great Wall Fund, and Wang Bin of Huaan Fund can all cover the losses in 2023 with their earnings this year.
The Manulife Prosperity Pilot Two-Year Holding Fund managed by Wang Peng of Manulife Fund has achieved a positive return of 24.87% this year, covering a loss of 23.58% in 2023. However, the fund's latest unit net value is only 0.6759 yuan, and investors who held it at the beginning of its establishment are still facing a loss of more than 30%.
With the recovery of sentiment in the A-share market, although the speed of fund repair and drawdown is expected to accelerate, it is still far from the goal of most fund holders to achieve account profitability.
The value of "quality assets" returns
Behind the rebound in the performance of top fund managers, it can be seen that the value of "high-quality assets" that has always been favored by fund managers is returning.
At the beginning of the year, small and micro-cap stocks suffered a heavy setback, and the A-share market also experienced a significant style switch. Driven by a variety of factors, the A-share market has gradually shifted from speculation in the past to high-quality stocks such as value and high performance.
"The rebound of the economy will inject new impetus into the upward movement of the market, and the market has obvious signs of stabilization. Tan Li of Harvest Fund believes that the valuation level of the overall market is low, implying more pessimistic performance growth expectations, and she is optimistic about the yield space under low expectations. In addition, listed companies have begun to pay attention to the quality of operation and dividends, bringing tangible returns to investors and returning to the essence of investment.
Recently, the Hang Seng Index has risen for five consecutive years, and A-shares have attracted more than 20 billion yuan of northbound funds in a single day, further pushing the sentiment of the A-share market to a climax. "Recently, Hong Kong stocks and A-shares have ushered in substantial net inflows, especially the inflow of funds allocated to economy-related varieties such as banks and nonferrous metals, indicating that foreign institutional investors have gradually adjusted their expectations from pessimistic to neutral and optimistic. China AMC believes that A-shares and Hong Kong stocks have continued to decline in pessimism, and the current global valuation is very cheap.
From the perspective of performance during the year, Shenwan's low price-to-earnings ratio index, low price-to-book ratio index, and large-cap index all achieved positive returns, which were far better than the small and micro cap index and high price-earnings ratio index.
Core assets, high-performance stocks, value stocks and other hot spots, foreign institutions that have always favored the above-mentioned label companies are also actively bullish on A-shares.
"Continue to overweight A shares. Goldman Sachs Asia Pacific Chief Equity Strategist Mu Tianhui and Goldman Sachs Chief China Equity Strategist Liu Jinjin gave the latest investment advice at a recent event held by Goldman Sachs. On the same day, UBS's Global Emerging Markets Equity Chief Strategist also published an emerging market equity strategy, upgrading the MSCI China Index to overweight.
Editor-in-charge: Tactical Heng
Proofreader: Yao Yuan