A huge loss of nearly 5 billion! Top fund managers, not as good as retail investors?

Sharp eyes on finance

2024-05-11 16:20Posted on the official account of Beijing Ruiyankan Finance

Success is also new energy, defeat is also new energy. This sentence is not false at all for Feng Mingyuan, the "top stream" of Cinda Australasia Fund, when new energy was hot, it was once praised as an "altar", and when new energy continued to be sluggish, it was questioned by the people as "not as good as retail investors".

There are no tens of billions of scale products, and the name of "top stream" does not live up to the truth

When investors browse some fund information, after seeing the word "top stream", they are often followed by the names of "well-known" fund managers such as Zhang Kun, Liu Yanchun, Xie Zhiyu, Fu Pengbo, Feng Mingyuan, etc.

However, after looking at the situation of several products managed by Feng Mingyuan in Cinda Australasia, Feng Mingyuan's title of "top stream" is really not worthy of the name, and it should not be put together with fund managers such as Zhang Kun, Liu Yanchun, and Xie Zhiyu.

There is no other reason. Zhang Kun and Liu Yanchun, these fund managers still have more than 10 billion and 20 billion products under management, but Feng Mingyuan currently has the largest scale of products under management of only 6.691 billion, ranking 99th among all equity fund managers in the total scale of management, and 301st in the total scale of all mixed fund managers under management.

(Data source: Tiantian Fund Network)

How can such a "top stream" be convincing? If the fund managers with a scale of more than 10 billion yuan are called "top streams", then there are about 400 "top streams" in the entire public fund circle, of which the largest "top streams" are Wang Changjun and Tian Yao of Tianhong Fund, with a total scale of 776.346 billion and 749.983 billion respectively.

However, the strange thing is that it seems that the names of these two bigwigs are really rarely heard in the fund circle, and the strongest presence is still Zhang Kun, Liu Yanchun, and Feng Mingyuan, but Zhang Kun is not ranked in the top 50 in terms of scale!

I really don't know, who is touting these every day, the "top stream" Zhang Kun, the "top stream" Liu Yanchun, and the "top stream" Feng Mingyuan?

Lost 4.8 billion in 3 years, Jimin: not as good as ordinary retail investors

Perhaps, the so-called "top stream" in the current public fund circle is not ranked according to the scale of fund managers under management, but according to the growth rate of the net value and scale of the products under management.

Taking Feng Mingyuan, the "top stream" fund manager of Cinda Australasia, as an example, the largest product under management is the Xinao New Energy Industry Fund, with the latest scale of 6.691 billion. However, in the first two years, when new energy was the hottest, the scale of this fund reached more than 17.4 billion yuan, and the net value reached 5.725, and the corresponding scale and net value growth rate were quite explosive.

From 2018 to the end of 2021, the net value and scale of Xinao New Energy Industry Fund continued to soar, with the net value soaring by more than 350%, and the scale soaring by more than 2089.07%, and the scale growth rate exceeded 270% for two consecutive years in 2020 and 2021, especially the scale growth rate in 2021 reached 323.30%!

(Data source: fund annual report, compiled by Ruiyan brother)

However, I don't know if Feng Mingyuan, who is the "top stream", knows the phrase "scale is the enemy of fund returns", but the net value trend of the Xinao New Energy Industry Fund managed by him cannot escape the limitation of this sentence.

Since the end of 2021, the net value of the Xinao New Energy Industry Fund has begun to retreat all the way, with a maximum drawdown of more than 59% so far, during which the people have lost more than 1.9 billion wealth. This figure is only the situation of a single product under Feng Mingyuan's management, and he currently has 4 products under management, with a cumulative loss of more than 4.885 billion from 2021 to 2023.

Among them, the new fund Xinao Zhiyuan held the fund for three years on January 25, 2022, and the people who held this fund are now estimated to be angry, and they will hold it for three years, that is, it will not be open for redemption until January 25, 2025, but since its establishment two years ago, this fund has lost more than 1.2 billion wealth of the people, and its initial scale is only 4.118 billion.

Of course, the loss of more than 1.2 billion includes the management fee of more than 125 million charged by Cinda Australasia Fund!

Some people who hold Xinao Zhiyuan said that before buying the fund, they believed too much in Feng Mingyuan and had a beautiful fantasy, but now their ability to see it is too poor, and it is not much better than that of ordinary retail investors.

So what can it be? Although it has been held for 2 years, it has been lost for 2 years, but it will take at least another 10 months before it can be sold and redeemed.

Buy high and sell low, hold nearly 600 stocks, where is the active management ability?

It is indeed a bit too much to say that the "top stream" Feng Ming is far inferior to ordinary retail investors, at least a little better than retail investors.

The biggest feature of A-share retail investors is chasing up and down, which many people know very well, but there is another point that many investors may not pay much attention to, that is, A-share retail investors do not like to diversify their investment, for various reasons, such as capital restrictions, the psychology of "fighting a bicycle into a motorcycle" and so on.

For ordinary retail investors, Feng Mingyuan has done a "very good" job in diversification, but from the perspective of classical financial management, he may have done a little too much.

According to the 2023 financial report of Xinao New Energy Industry Fund, the fund holds a total of 593 stocks, and the market value of the last 593rd stock is only 1114.8 yuan, and the market value of the penultimate position is 20,700.

But the problem is that these positions, which may have little impact on the fund, also account for a portion of the fund's assets, which leads to the fund's investment in the top 10 holdings too little. At the end of 2023, the top 10 holdings of Xinao New Energy Industry Fund accounted for only 16.15%.

(Screenshot of the 2023 financial report of Xinao New Energy Industry Fund)

This is actually explained by the fact that the people have a lot of doubts about the fund's holdings of stocks, but the fund is not rising, because the contribution of the stocks to the fund's return is too small. With this kind of holding method, even if all the top ten heavy positions are up and down, the net value of the fund cannot rise much!

However, the people's views on the rebalancing of Xinao New Energy are also correct. Although this fund is called a new energy industry fund, its top ten holdings in the first quarter of this year were concentrated in electronics and semiconductor stocks, and there were signs of style drift.

(Data source: Tiantian Fund Network)

Of course, although Feng Mingyuan has done an "excellent" job in diversifying investment, he still has the characteristics of "chasing the rise and killing the fall" by buying high and selling low. It stands to reason that since it is under the banner of the new energy industry, the key stocks of the new energy industry, such as the lithium battery leader CATL, the new energy vehicle leader BYD, and the photovoltaic leader LONGi, should occupy a considerable proportion of the fund's holdings.

However, what is interesting is that when new energy was hot in the first two years, this fund did hold several stocks such as CATL, BYD and LONGi, but with the overall cooling of new energy stocks, these stocks gradually faded out of the fund holding list. In the 2023 financial report, there is no longer LONGi and BYD, and the position of CATL has also dropped to 0.05%.

At the end of 2020, Xinao New Energy held 403,900 shares of CATL, 790,000 shares at the end of 2021, 487,300 shares at the end of 2022, and 24,700 shares at the end of 2023. The characteristics of buying high and selling low are very obvious.

(Screenshot of the 2023 financial report of Xinao New Energy Industry Fund)

Feng Mingyuan's diversification style (excluding the buying high and selling low) is reminiscent of Peter Lynch, who often held thousands of stocks when he managed the Fidelity Fund, but he put 90% of his money into the 10 most optimistic stocks, and then put the remaining 10% into the rest of the stocks to find new targets.

However, it can be seen that Feng Mingyuan is not Peter Lynch's operating style at all. It is not so much that Feng Mingyuan's style is to "cast a wide net" in pursuit of more opportunities, but that as a fund manager, he lacks confidence in his investment ability and does not dare to invest most of the fund's assets in the top ten stocks he is most optimistic about, but the premise is that he must have his own most optimistic stocks.

This approach seems to achieve the goal of sufficient risk diversification, but in fact it may introduce new risks, and the transaction fees generated by frequent and large transactions will eat up a large part of the fund's assets.

In 2023, the Xinao New Energy Industry Fund, which has a scale of less than 7 billion, will generate a transaction fee of 6.7912 million yuan, and the transaction fee of Invesco Great Wall Emerging Growth, which has a scale of 27.2 billion yuan managed by Liu Yanchun, will only be 1.33 million yuan in 2023. Among them, the current commission payable by Xinao New Energy Industry Fund to Cinda Securities, the major shareholder of Cinda Australasia Fund, is as high as 10.2532 million!

(Screenshot of the 2023 financial report of Xinao New Energy Industry Fund)

Forget it, let's analyze Feng Mingyuan like this, I really can't see that Feng Mingyuan has any special management ability or operation and trading skills.

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