The people become "hungry people"! After a huge loss of 100 billion, Wells Fargo Fund is in a hurry?

Sharp eyes on finance

2024-05-14 16:31Posted on the official account of Beijing Ruiyankan Finance

After the star fund manager fell off the altar, Wells Fargo Fund is inviting a new god?

A huge loss of 100 billion, but a wild profit in management fees

When it comes to Wells Fargo Fund, many people's first reaction is Zhu Shaoxing.

That's right, this super-top fund manager has been in charge of the Wells Fargo Tianhui Growth Mixed Fund for more than ten years, which can be described as quite dedicated.

Fuguo Tianhui grew into a mixture, and achieved an amazing increase in 2020, with the net value of the unit soaring from 1.5 at the beginning of the year to 3.5 at the end of the year, which directly made Zhu Shaoxing ascend to the altar, and a large number of people rushed to buy the fund at a high level, causing the scale of the fund to skyrocket.

Everyone knows the ending later, the fund managed by Zhu Shaoxing has suffered continuous losses in recent years, and after a "slight loss" of 363 million yuan in 2021, it will lose 9.819 billion yuan in 2022.

In 2023, Wells Fargo Tianhui Select Growth A will lose another 3.13 billion yuan, ranking second in the loss of Wells Fargo Fund. By the end of 2023, the size of the fund will be around 28.3 billion yuan.

It is worth noting that the loss of the first place in the loss of Fuguo CSI New Energy Automobile A, the loss of 3.19 billion yuan, but the scale of this fund is only 8.3 billion yuan, only a fraction of Zhu Shaoxing's fund.

The reason is not difficult to explain, there are too many losses, and customers can't stand to redeem one after another, resulting in a sharp decline in the size of the fund.

Looking at the entire Wells Fargo Fund, the losses in the past two years have also been quite explosive.

In 2022, all of Wells Fargo's fund products will bring losses of up to 78.5 billion yuan to customers, and in 2023, they will lose 24.7 billion yuan again, with a cumulative loss of 103.2 billion yuan!

In the past 2022 and 2023, public funds have lost about 1.9 trillion yuan, and the loss of Wells Fargo Fund alone accounts for nearly 5.5% of the entire industry.

Wells Fargo Fund, this is the rhythm that makes the people "hungry".

However, Wells Fargo's management fees have been turned upside down. In 2022, the year with the largest loss, Wells Fargo Fund received 6.2 billion in management fees.

Many people have only heard of public funds with a scale of up to 100 billion, but few know that there have been fund companies with losses of more than 100 billion.

In order to build momentum, the strategy adopted by fund companies is to create and package star fund managers, and then do large-scale, and then increase publicity efforts to attract more people to buy. However, for losses, they hold the mentality of "family ugliness should not be publicized", and often avoid talking about it and deliberately avoiding it.

Dear readers and investors, in the face of the publicity of fund companies, we must pay more attention.

Fan Yan, from "small temple" to "big factory"

With a huge loss of more than 100 billion, Zhu Shaoxing's golden sign also fell off the altar, and in the face of an unfavorable situation, Wells Fargo Fund may not be able to sit still.

Since your own fund manager always loses money, you might as well believe that "a monk from afar will chant scriptures" and invite someone else's star fund manager to come and sit down.

As a result, some time ago, big news broke out in the fund circle: Fan Yan of Yuanxin Yongfeng Fund joined Wells Fargo Fund.

Who is Fan Yan? She holds a master's degree in management from Fudan University, and is the former deputy general manager and chief investment officer of Yuanxin Wing Fung Fund.

Since 2014, Fan Yan has worked for Yuanxin Yongfeng Fund, and has served as fund manager assistant, deputy director and director of the company's equity investment department until she was promoted to deputy general manager and chief investment officer.

So, what is the performance of Fan Yan, who is favored by Wells Fargo Fund?

She has been in charge of the fund since October 28, 2015, with a return of about 190% and an annualized return of about 13%.

As you can see from the chart below, the fund performed quite strongly before 2022, but it has been in a state of volatility since 2022.

Most of them will also suffer serious losses in 2022 and 2023. It can be seen that no matter how good a fund manager is, it is difficult to make money forever.

Fan Yan resigned from Yuanxin Yongfeng on April 1, 2024, and since the fund manager has a six-month quiet period, that is, she cannot participate in the investment research business of the new company within 6 months after changing jobs, it remains to be seen how much help Fan Yan can bring to Wells Fargo Fund.

Fan Yan has become the star fund manager of Yuanxin Yongfeng with her relatively good performance, but the gap between the scale of Yuanxin Yongfeng and that of Fuguo is too big.

As of the end of 2023, the scale of funds under management of Yuanxin Yongfeng Fund was 38.34 billion yuan, the scale of non-money market funds under management was 35.152 billion yuan, and the total scale of active equity funds was 19.070 billion yuan. Among them, the fund scale managed by Fan Yan is 17.009 billion yuan, and she covers almost all of the company's active equity funds.

Wells Fargo Fund is a trillion-level super fund giant. As of the end of the first quarter of this year, the scale of funds managed by Wells Fargo was as high as 915.779 billion yuan, of which the scale of non-money market funds was 571.063 billion yuan.

In terms of the number of funds, Wells Fargo Fund manages as many as 336 funds, with a total of 90 fund managers.

Can Fan Yan be better than these 90 fund managers? We might as well stay tuned.

Inquire about Zhejiang Guoxiang, Zhu Shaoxing chased up and brewed huge losses

The huge number of funds, the scale of funds, and the management team have not allowed Wells Fargo Fund to achieve superior returns, but have suffered heavy losses, with dozens of funds losing more than 30% since their inception, and many funds losing more than 50%.

In particular, the company's "leader" Zhu Shaoxing fell off the altar, which caused damage to the company's image.

By the way, what seriously hit the image of Wells Fargo Fund is also the case of Zhejiang Guoxiang, which is suspected of fraudulent listing and aroused the anger of investors.

Some fund bloggers bluntly said that after the incident of Zhejiang Guoxiang, Wells Fargo Fund and Harvest Fund can be blacklisted.

Zhu Shaoxing once created the myth of earning 21 times in 15 years, and also took advantage of this to ascend to the altar of top fund managers. However, after being "created a god", Zhu Shaoxing's style changed greatly, constantly chasing up and down.

For example, he has continued to increase his position in Yili shares since the second quarter of 2020, from 18 million shares to 40 million shares in the first quarter of 2022. The all-time high price of Yili's shares appeared in January 2021, and Zhu Shaoxing chose to carry a heavy position in the subsequent drawdown, so he suffered serious losses.

Although Zhu Shaoxing himself said that "chasing up and killing down is an important reason why the people don't make money or even lose money", but when it comes to actual operation, he has chased many individual stocks, and he has not achieved the "unity of knowledge and action" at all.

Since the beginning of 2021, Zhu Shaoxing's net value of Fuguo Tianhui has fallen all the way, and the net value of the unit has fallen from more than 4.1 to below 2.1 at the beginning of this year, almost halved!

Although it has risen to around 2.5 in recent months, it has hurt the morale of investors who bought at a high level.

In the Wells Fargo Fund, Li Yuanbo is more likely to lose than Zhu Shaoxing. The Wells Fargo Innovation Trend Equity Fund he managed, which was established in July 2020, had a scale of 16.3 billion at the beginning of its establishment, and with the serious loss of net value, customers continued to redeem, and by the end of the first quarter of this year, the scale had dropped to less than 2.5 billion.

At the beginning of this year, the net unit value of the fund fell to 0.45, which was worse than halving.

Wells Fargo Fund, which is mired in losses, may be really anxious this time, and we will wait and see whether the company can turn the tables with the newcomers led by Fan Yan and regain the trust of the majority of people.

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