On May 14, Huatai Berry Multi-Strategy Hybrid, an active equity fund managed by Dong Chen, a 10 billion fund manager, announced the suspension of subscription.
It is worth noting that since the end of April this year, a number of active equity products under well-known high-performance fund managers such as Ye Yong, Bao Wuke, and Yang Jinjin have been suspended for large-scale subscriptions.
With this year's heavy position in resource stocks, the products of the above-mentioned fund managers have generally achieved very bright investment results in the market rebound since February 6 this year.
Control the scale of "closed doors"
On May 14, Huatai Berry Fund announced that in order to ensure the stable operation of the fund and protect the interests of fund share holders, Huatai Berry Multi-Strategy Hybrid has suspended the acceptance of subscription (including conversion and transfer-in, regular and fixed investment) applications since May 14.
Image source: Fund announcement
Wind data shows that the current fund manager of Huatai Berry Multi-Strategy Hybrid is Dong Chen, a well-known active equity fund manager under Huatai Berry Fund, and the total scale of public offering products he manages is close to 30 billion yuan. As of the end of the first quarter of this year, the scale of the fund was 2.892 billion yuan. Since the market rebounded on February 6 this year, good gains have been achieved. As of May 13, the fund's A share rose by more than 25% in this round of rebound.
Combined with the fund's top 10 heavy stocks at the end of the first quarter, its holdings are dominated by resource stocks and real estate stocks, including Yintai Gold, CICC Gold, Zijin Mining, China Merchants Shekou, Poly Development, Aluminum Corporation of China, Shandong Gold, China Merchants Shipping, Chinatungsten High-tech, and Jiuli Special Materials. Among them, Chinatungsten High-tech is the new position of the fund in the first quarter of this year, with 5,326,600 shares.
In this round of market rebound since February 6, Chinatungsten High-tech stock price has rebounded sharply, and as of May 13, its secondary market price has increased by as much as 85.52%. In addition, CICC Gold, China Merchants Shipping and Zijin Mining rose by about 50% in this round of rebound, while Shandong Gold, Aluminum Corporation of China and Yintai Gold also rose by more than 35%.
In addition to Huatai Berry Multi-Strategy Hybrid, large-scale active equity products such as Huatai Berry Dingli Hybrid, Huatai Berry Xinli Hybrid, and Huatai Berry Fuli Mixed managed by Dong Chen have all been restricted from purchase since September 2023, and the business restrictions for large-amount subscriptions (including conversion and transfer-in and regular fixed investment) are 5 million yuan, 5 million yuan, and 1 million yuan respectively. Huatai Berry Multi-Strategy Hybrid has also changed from a single-day purchase limit of 1 million yuan since September 2023 to a suspension of subscription.
The purchase of high-quality products is collectively limited
Recently, a number of high-performing active equity funds have announced the suspension of large-scale subscriptions.
Why is the collective purchase of high-performance products restricted? According to the announcements of a number of funds, this move can stabilize the scale of the fund, pursue smooth operation, and protect the interests of existing fund share holders.
Since May 10, the daily subscription limit of 10,000 dual-engine flexible allocation hybrid single-day single fund account (including conversion and transfer-in and regular fixed investment business) managed by Ye Yong, a well-known fund manager, has been limited to 1 million yuan (excluding 1 million yuan).
Since May 6, the well-known fund manager Bao Wuwu has managed Invesco Great Wall State-owned Enterprise Value Mix, Invesco Great Wall Value Discovery Mix, and Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select Stocks have collectively suspended the acceptance of single-day subscriptions of more than 5,000 yuan (including daily subscription and regular fixed investment) and conversion and transfer-in business.
Since April 29, the Invesco Great Wall Value Pilot Two-Year Holding Hybrid and Invesco Great Wall Value Driven One-year Holding Flexible Allocation Hybrid have also suspended the acceptance of subscription and conversion and transfer-in business of more than 5,000 yuan per day.
On April 1 this year, the well-known fund manager Yang Jinjin managed the Bank of Communications Qicheng Mixed raised the business limit of large-amount subscription (conversion and transfer-in, regular fixed investment) from 1,000 yuan to 50,000 yuan, and then announced that it would reduce the business limit of large-amount subscription (conversion and transfer-in, regular fixed investment) to 5,000 yuan again from May 6.
Wind data shows that from February 6 to May 13, the Wanjia dual-engine flexible allocation hybrid A managed by Ye Yong rose by more than 30%, and the yields of Bank of Communications Qicheng Hybrid A, Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select Stock A, Invesco Great Wall Value-driven One-year Holding Period Flexible Allocation Hybrid, Invesco Great Wall State-owned Enterprise Value Hybrid A, and Invesco Great Wall Value Pilot Two-year Holding Hybrid were also above 20%.
As of the end of the first quarter of this year, Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select Stocks, Luoyang Molybdenum, and Zijin Mining, which have a flexible allocation of Wanjia dual-engine flexible allocation mixed heavy positions, have risen by 69.29% and 49.51% respectively since the market rebounded on February 6 this year, and the shares of CICC Gold, COSCO Shipping Energy, and China Merchants Shipping have also risen by about 50%.
The performance of upstream resources may be differentiated
In the recent market exchange, Ye Yong said that after 2021, with the establishment of the upward inflection point of the commodity cycle, the market's large style cycle has gradually switched from a growth style to a resource stock style. A commodity cycle lasts for 8-10 years or more. In this sense, we are still in the early middle of the commodity cycle. Correspondingly, the resource stock style cycle determined by the upward cycle of commodities is in the early and middle stages.
For the upstream level, Yang Jinjin said in the analysis of the first quarterly report of this year's fund that the upstream is generally facing the situation of weak supply growth in the industry due to insufficient capital expenditure, so if the demand can grow steadily, the company's profitability and shareholder returns are considerable in the long run. In the context of energy transition and carbon peaking, the demand ceiling for energy commodities is getting closer and closer, and it will also bring a significant pull to the demand for some metals.
Therefore, in Yang Jinjin's view, the performance of upstream resources will be significantly differentiated, static low-valuation and high-dividend industries may become value traps, and some commodities may also hedge against the impact of declining traditional demand due to the pull of new energy.
Bao Wuke said in the first quarterly report of this year's fund that he continues to be optimistic about energy-related resource sectors. On the supply side, due to the impact of ESG and other factors, the global output 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. In view of this supply-demand pattern, the contradiction between supply and demand of resources may be further exacerbated. As a result, the market is likely to significantly increase forward price expectations for these products.
Reviewer: Hou Zhihong Editor: Zhang Jing Proofreader: Yu Hongbo Producer: Li Ruoyu
Issued by: Fei Yangsheng
