With the release of the first quarterly report, the position of FOF was announced.
Liu Xu and Bao Wuke......
Professional institutions prefer funds managed by these managers
Guojin Securities (600109) research report pointed out that in the first quarter of 2024, the active equity fund with the highest proportion and the largest number of heavy positions in FOF heavy position funds is "Dacheng High-tech Industry", and the market value of fund holdings in this quarter accounts for 3.90% of the market value of all heavy position funds, and there are 52 heavy positions in the FOF participating in the statistics, an increase of 28 from the previous quarter.
Chart 1: Top 20 active equity funds with FOF holdings, data source: Wind, Guojin Securities Research Institute, as of 2024/3/31
Chart 2: Top 20 active equity funds held by FOF, data source: Wind, Guojin Securities Research Institute, as of 2024/3/31
WIND data shows that Dacheng High-tech was established in February 2015, the fund manager is Liu Xu, and the latest scale reaches 6.932 billion yuan. In terms of performance, in the first quarter of this year, Dacheng's high-tech industry performed well, taking A share as an example, the net value growth rate reached 10.33%!
How to identify high-tech industries? Liu Xu pointed out in the first quarterly report that the fund classified 28 first-class industries of Shenyin Wanguo as high-tech industries such as computer, electronics, media, communications, machinery and equipment, electrical equipment, national defense and military industry, automobile and chemical industry. The Fund defines listed companies engaged in high-tech industries in Shanghai and Shenzhen as listed companies in high-tech industries, including the following two types of companies: (1) companies whose main business is in high-tech industries and (2) companies whose products or services are currently not in the high-tech industry and whose products or services are expected to become major sources of profit in the future.
Bao Wuke's unmanaged products are also favored by fund institutions.
According to WIND data, "Invesco Great Wall Value Margin" has become the third active equity fund with the largest proportion of FOF holdings in the first quarter of 2024, the second largest number of holdings, and the fourth largest increase in the proportion of FOF heavy position funds.
Chart 3: Top 10 active equity funds with an increase/decrease in FOF holdings, data source: Wind, Sinolink Securities Research Institute, as of 2024/3/31
Bao Keke is a typical value player, with a stable holding style and a strong emphasis on the margin of safety of the portfolio. In the first quarter of this year, in the context of the shrinkage of the management scale of most fund managers, Bao Wuke's management scale climbed against the trend and exceeded the 20 billion mark.
Looking at Bao Wuke's performance in recent years, the heavy position in energy stocks is an important reason for his performance growth. In the first quarterly report, Bao Wuke pointed out that the energy-related resources sector accounts for a large proportion of our portfolio, and we continue to be bullish on this area. While China's economy is currently under some pressure, the rest of the world is performing steadily, with demand for resources, especially energy, continuing to grow. On the supply side, due to environmental, social and governance (ESG) factors, the global production growth rate of energy resources is low. Even in the context of high product prices, capital investment in crude oil, coal and other industries is still at a low level. Given this supply-demand pattern, we expect that the contradiction between supply and demand of resources may further intensify. As a result, the market is likely to significantly increase forward price expectations for these products.
In addition, there are also funds that prefer products managed by the new generation of fund managers. WIND data shows that among the active equity funds managed by fund managers with a tenure of less than 3 years, the "E Fund Value Selection" managed by Bao Zhengyu held a heavy FOF in the first quarter
The market capitalization accounts for the highest proportion of the total size of FOF heavy position funds; The top new generation fund managers also include Jin Meng of Tianhong Fund, Xu Zhixiang of Wells Fargo Fund, and Ren Jing of China Southern Fund. From the perspective of first-quarter returns, the quarterly returns of "Yongying Dividend Selection" managed by Xu Tuo, "Harvest Resource Selection" managed by Liu Jie and "Guorong Rongsheng Leading Strict Selection" managed by Zhou Desheng were relatively excellent, with first-quarter returns of 17.58%, 16.87% and 14.55% respectively.
Produce and sell something oneself?
3 hold their own equity funds of more than 1 billion
WIND data shows that in the first quarter of this year, FOF products of fund managers, including E Fund, China Europe Fund, GF Fund, China Universal Fund, Bank of Communications Schroder Fund and Wells Fargo Fund, all held their own equity funds.
Guoyuan Securities (000728) research report pointed out that in terms of holding its own funds, E Fund FOF held 3.617 billion yuan of its own equity funds, accounting for 90.82% of all heavy equity funds, which is almost a "stud" own fund company product.
Chart 4: E Fund's FOF holdings of its own active equity funds, data source: Wind, Guojin Securities Research Institute, as of 2024/3/31
Among them, the fund with the highest market value is "E Fund Ruiheng", the fund manager is Xiao Nan/Wang Yuanchun, with a market value of 584 million yuan, followed by "E Fund Supply Reform" (535 million yuan) and "E Fund Value Selection (110009)" (517 million yuan).
In addition, CEIBS funds ranked second in terms of holdings, with CEIBS FOF holding 1.167 billion yuan of its own equity funds, accounting for 86.79% of all heavy equity funds, of which the fund with the highest market value held by CEIBS FOF was the "CEIBS Mingrui New Normal" managed by Liu Weiwei, with a market value of 273 million yuan, followed by "CEIBS Fenghong Shanghai-Hong Kong-Shenzhen" (243 million yuan) and "CEIBS Value Smart Return" (205 million yuan).
Chart 5: CEIBS FOF's holdings of its own active equity funds, data source: Wind, Guojin Securities Research Institute, as of 2024/3/31
GF FOF holds 1.050 billion yuan of its own equity funds, accounting for 59.53% of all heavy equity funds, of which GF FOF holds the highest market value fund of "GF Multi-Factor", with a market value of 198 million yuan, followed by "GF Domestic Demand Growth" (151 million yuan) and "GF Xinxiang" (112 million yuan).
Chart 6: GF Fund FOF holds its own active equity funds, data source: Wind, Guojin Securities Research Institute, as of 2024/3/31
From the perspective of performance, the performance of its own products held by FOF has been both profit and loss. For example, the two Gülen-managed products held by CEIBS FOF, CEIBS Medical Innovation and CEIBS Healthcare, performed poorly, with returns of -18.06% and -14.94% respectively in the first quarter. The high-quality enterprises in Central Europe managed by Dai Yunfeng lost 10.91% in the first quarter!
For the purchase of FOF with performance losses, industry insiders often question that this is the use of FOF to attract traffic for their own funds to achieve the purpose of self-production and self-sale.
The FOF that is heavily invested in its own fund is called an internal FOF, which is a regular allocation strategy of FOF. In fact, most of the FOF products of fund companies are on the survival line, and they need to rely on the brand of the fund company to develop the market and improve their popularity. For the people, FOF products prefer to buy their own products, which can avoid double charges.