Exploration! BOC Fund Wang Wei's "Four-Step Approach" to SelectIng Growth Stocks

Since the beginning of this year, the market style has changed rapidly, and the growth theme has become the main theme of the dominant A-share market, and at the time of the release of the three quarterly reports, growth stocks have once again attracted the attention of the market.

A few days ago, some brokers pointed out that high-quality growth is still the main line of allocation, and it is expected that the overall A three-quarter report will continue to grow at a high level, and the selection of high-prosperity stocks is one of the important strategies at present.

When it comes to tapping into growth stocks, BoC Fund's Wang Wei has a lot of experience. Coming from an engineering background, he is good at investing in high-end manufacturing, and the intelligent manufacturing industry he manages is to explore the investment opportunities in industries related to the theme of intelligent manufacturing under the background of China's economic structural transformation and industrial upgrading.

Heavy position layout of manufacturing industry, excellent performance

According to the latest three quarterly reports, the net value growth rate of BOC Intelligent Manufacturing A in the third quarter reached 11.48%, and the benchmark yield of performance comparison in the same period was 6.80%, and the excess yield was 4.68%. (Source: Periodic Reports of the Fund, as of 2021/9/30)

From the perspective of industry layout, BOC Intelligent Manufacturing A continued to lay out the manufacturing industry, and the manufacturing stock portfolio held by the manufacturing stock portfolio accounted for 82.01% of the fund's net asset value as of the end of the third quarter. (Source: Periodic Reports of the Fund, as of 2021/9/30)

Wang Wei said in the third quarter report that BOC Intelligent Manufacturing A maintained a relatively stable position and core stocks in the third quarter of the strategy, continued to focus on the allocation of investment opportunities in the automotive/power equipment/electronics/machinery industry, and gradually optimized the structure, focusing on increasing its holdings in manufacturing companies with high prosperity and great potential.

Looking back on the past, the long-term performance of BOC Intelligent Manufacturing A is also quite eye-catching.

According to Galaxy Securities data, the net value growth rate of BOC Intelligent Manufacturing A in the past year, three years and five years reached 72.17%, 343.30% and 200.39% respectively, ranking 6/244, 7/178 and 14/122 respectively, and won the three-year five-star evaluation and five-year four-star evaluation of Galaxy Securities. (Similar ranking is: 1.1.1 Equity Fund - Standard Equity Fund - Standard Equity Fund (Class A); Data Source: Galaxy Securities, as of 2021/10/22)

The excellent performance comes from Wang Wei's keen sense of industry trend changes and his in-depth understanding of the company.

When talking about his investment philosophy, Wang Wei summed it up like this: he prefers growth stock investment and is good at tapping opportunities in the growth manufacturing industry; it is also a relatively stable style in the growth style, and will pay more attention to valuation and risk-return ratio.

In his view, China's A-share market still has a large number of growth stock investment opportunities, and such growth stock investment will also bring better returns to investors.

Careful and in-depth study of fundamentals, the "four-step method" to select growth stocks

Since starting as a fund manager in 2015, Wang Wei has experienced several large fluctuations in the market, which has also had an important impact on his investment style and philosophy.

In the continuous experience, Wang Wei always adheres to the bottom-up investment stock selection method. In his view, the selection of high-quality excellent listed companies is the first step in risk control and drawdown control.

In these years of fund management career, Wang Wei practiced the theory with practical actions, and further improved and optimized the theory in practice, summing up the "four-step method" of preferring growth stocks.

The first step is to use quantitative indicators to judge the growth rate of the industry and select the long-term sustained upward industry or industrial chain; the second step is qualitative judgment, combined with the management ability of the target company and the level of corporate governance to analyze the certainty of growth.

The third step in choosing growth stocks is to consider the industry pattern, that is, to figure out what the state of an industry is, and whether the concentration is high or low. The final step is to implement the analysis of specific companies, observing various indicators such as profitability, revenue, and valuation.

A gentleman will do what he says, and then he will say it. Wang Wei's words and deeds are integrated, adhering to the concept of carefully selecting high-quality growth stocks and practicing them, leading BOC Intelligent Manufacturing A out of a beautiful revenue curve.

Performance Review: BOC Intelligent Manufacturing A was established on June 19, 2015, and the returns/performance benchmark returns for the last five full years were: 2016 -28.16%/-16.79%, 2017 13.71%/0.49%, 2018 -38.98%/-24.03%, 2019 53.69%/23.28%, 2020 109.09%/54.01%, The benchmark return/performance was 20.62%/6.06% for the period 1 January 2021 to 30 June 2021 and 11.48%/6.80% for the period from 1 July 2021 to 30 September 2021 (Source: Fund Periodic Report).

Risk Warning: Investment is risky, under the influence of market fluctuations and other factors, the fund investment may have losses, in a few extreme cases may lose all the principal. The fund manager does not guarantee that the fund will be profitable, nor does it guarantee a minimum return, the past performance of the fund does not indicate its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund. Before investing in the fund, investors should read the fund's prospectus, fund contract and other legal documents in detail, understand the specific product situation, and judge whether the fund matches its risk tolerance according to its own situation. The views expressed herein do not constitute investment advice or any other advice of BOC Funds and are subject to change as circumstances change.

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