Buy high and sell low, and step on the thunder continuously! The Bank of Communications Fund suffered a huge loss of 25 billion a year

Sharp eyes on finance

2024-05-17 17:51Posted on the official account of Beijing Ruiyankan Finance

Some people complained that Wang Chong, the fund manager of the Bank of Communications Schroder Fund, took over many stocks at a high level in the strange operation of the Bank of Communications Ruifeng Fund, which was not a rat warehouse and no one believed it, resulting in a withdrawal of more than 50% of the fund's net value.

Remembering that at the beginning of this year, the secretary of the board of directors of Sieyuan Electric "angry" the fund manager in the conference call, among which the fund manager of the Bank of Communications Schroder was scolded, the performance of Sieyuan Electric increased by 15%, and the secretary of the board of directors bought the fund of the Bank of Communications Schroder of Sieyuan Electric but lost 20%, and these fund managers also questioned the performance of the board secretary!

A huge loss of 25.2 billion yuan a year, suffering a huge redemption

The specific fund manager of Bank of Communications Schroders is the secretary of the board of directors of Sieyuan Electric, but the fund under the Bank of Communications Schroders, which has been heavily invested in Sieyuan Electric, is the Bank of Communications New Vitality Fund, and its fund manager is Yang Hao.

As of the first quarter of this year, Bank of Communications New Vitality is still the seventh largest shareholder of Sieyuan Electric, which is the fifth largest stock of the fund, holding 7.5053 million shares, accounting for 6.53% of the fund's assets. In the past three years, the net value of the fund has fallen by 31.58%, with a loss of 3.889 billion.

(Bank of Communications New Vitality Net Profit, data source: Tiantian Fund Network)

In this case, it is no wonder that the secretary of the board of directors of Siyuan Electric wants to "go crazy", but it is obviously not only the fund investor of the secretary of the board of directors of Siyuan Electric who is mad.

Bank of Communications Schroder Fund is a joint venture between Bank of Communications and Schroders Investment Management of the United Kingdom, which has a history of 200 years, with Bank of Communications holding 65% of the shares, Schroders holding 30% of the shares and China Shipping holding 5% of the shares.

According to the financial report of Bank of Communications, from 2021 to 2023, the management scale of Bank of Communications Schroder Fund will continue to decline, and the net profit will continue to decline simultaneously. In 2021, the management scale will be 547.3 billion, a year-on-year increase of 61%, and the net profit will be 1.786 billion, a year-on-year increase of 42%; In 2022, the management scale will be 528.1 billion, down 3.5% year-on-year, and the net profit will be 1.581 billion, down 11% year-on-year; In 2023, the management scale will be 487.2 billion, down 7.74% year-on-year, and the net profit will be 1.2 billion, down 24% year-on-year.

(Screenshot of Bank of Communications' 2023 financial report)

If you look at the scale of Bank of Communications Schroders' equity funds, the management scale in 2023 alone will shrink by more than 22%, from 179.6 billion at the beginning of last year to about 139.8 billion at the end of the year.

The management scale of Bank of Communications Schroders Fund continued to decline, mainly due to the continuous huge redemption of fund investors in its products.

According to statistics, there are currently a total of 232 fund products under Bank of Communications Schroders, including 136 equity (stock and hybrid) products, with a total loss of more than 25.2 billion, but a handling fee of 2.166 billion yuan was charged. In this case, in 2023, 90 equity products will suffer net redemptions, and their shares will shrink by more than 31 billion.

With a huge loss of 6.7 billion yuan in 3 years, Wang Chonggao bought low and sold too obviously

Among all the equity products of the Bank of Communications Schroder Fund, what is the product managed by Wang Chong, the fund manager who was complained about by the people?

Let's put it this way, it can be regarded as one of the "Top Ten King Kongs", because in 2023, the overall loss of the products managed by the Bank of Communications Schroder Fund will exceed 25.2 billion, while the Bank of Communications New Growth, Bank of Communications Ruifeng, and Bank of Communications Select managed by Wang Chong alone will lose 2.663 billion, close to 2.7 billion losses, equivalent to 10.56% of the overall loss of the fund company!

Because a fund manager drags multiple products, the holding style is naturally homogeneous, which has led to the basic drawdown of the three products managed by Wang Chong in the past year exceeding 30%, and the drawdown in the past three years has basically halved.

(Data source: Tiantian Fund Network)

How did Wang Chong lose 2.7 billion in one year and 6.7 billion in three years?

It is difficult to say whether there is really insider trading and rat warehouse, but the characteristics of buying high and selling low are still obvious, and at the same time, the holding style and industry preferences have also changed significantly in the past three years.

For example, Bank of Communications Select, managed by Wang Chong, began to increase its position in CVTE in the second quarter of 2021, from the 10th largest heavy stock to the second largest heavy stock, and at that time, the stock price of CVTE was at an all-time high.

Then, Bank of Communications Ruifeng, managed by Wang Chong, began to hold heavy positions in WuXi AppTec from the first quarter of 2022, and finally bought WuXi AppTec as the largest heavy stock in the third quarter of 2023, but in the fourth quarter of 2023, the A-share and Hong Kong stocks "WuXi Department" collapsed, and the stock price fell to half continuously.

(Screenshot of Bank of Communications Ruifeng's 2023 financial report)

In the first quarter of 2022, he began to hold a heavy position in Ziguang Guowei, and in the fourth quarter of 2022, he kicked Ziguang Guowei out of the top ten heavy positions, during which Ziguang Guowei fell by more than 30%.

In the first quarter of this year, the positions of the three products managed by Wang Chong began to shift from technology to liquor, and the top three heavy positions of Bank of Communications were Luzhou Laojiao, Gujing Gongjiu, Shanxi Fenjiu, and Kweichow Moutai.

(Data source: Tiantian Fund Network)

It seems that Wang Chong is "learning" from Zhang Kun and insists that the liquor will not relax.

Its fund manager has a number of insider deals

Of course, the people's doubts about the fund manager of Bank of Communications Schroder are not unfounded, after all, there have been many practitioners under the Bank of Communications Schroder Fund who were involved in insider trading and were fined for their "previous convictions".

On October 10, 2014, the China Securities Regulatory Commission fined Zheng Tuo, an investment manager of Bank of Communications Schroders, 6 million yuan, and sentenced the investment manager to three years in prison for criminal offenses. The reason is that during his tenure as the fund manager of the Bank of Communications Stable Fund, Zheng Tuo used the fund's undisclosed information to collude with others to operate and buy and sell a number of stocks, making illegal profits of more than 12.42 million yuan, constituting the crime of using undisclosed information to trade.

(Screenshot of Zheng Tuo's punishment announcement)

Also punished on the same day was Li Xuli, then the investment director of Bank of Communications Schroders, who was sentenced to 4 years in prison and fined 18 million yuan when he was the manager of the blue-chip fund under Bank of Communications Schroders, who bought and sold a number of bank stocks in the fund under his management before or at the same time, constituting the crime of using non-public information to trade.

(Screenshot of Li Xuli's punishment announcement)

Are there only these two "little mice" under the Bank of Communications Schroder Fund?

Apparently not!

On April 12, 2013, Wu Chunyong, then the investment manager of the special account investment department of Bank of Communications Schroder Fund, was fined 300,000 yuan for using non-public information to conduct insider trading, but ultimately lost 3.1396 million yuan.

(Screenshot of Wu Chunyong's punishment announcement)

Three consecutive insider trading and "rat warehouse" incidents indeed showed that there were loopholes in the internal risk control of the Bank of Communications Schroder Fund at that time. However, in recent years, with the tightening of industry supervision, it seems that Bank of Communications Schroders has rarely seen any more fines for insider trading and "rat warehouse".

Although these things are already old, just like analyzing the financial data of a listed company in the past 10 or 20 years to evaluate the investment value, the people should also learn as much as possible about the past performance, finance, reputation and other records of the fund issuer and fund manager before making a decision to invest in a fund, so as to reduce their investment risk to an acceptable range.

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