Dongfang Red Asset Manager Hu Yali's latest voice

China Fund News reporter Zhang Zilin

In the asset management industry of securities companies, Shanghai Orient Securities Asset Management Co., Ltd. (hereinafter referred to as "Oriental Red Asset Management") has always been out of the circle with the halo of "explosive money" and "value investment". Since the beginning of this year, this "top" company in the industry has ushered in the replacement of new and old management.

The variance of the industry is getting bigger and bigger, and the head asset management institutions are getting bigger and bigger by virtue of their strength, resources and endowments, and the latecomers are also eyeing the tiger, which cannot be underestimated. How to give full play to the advantages in the fierce competition and achieve longer-term development is an important issue facing the current management team.

Recently, Hu Yali, co-general manager of Dongfanghong Asset Management, accepted an exclusive interview with China Fund News. Although she has only been in office for one month, with years of close contact with the asset management industry, Hu Yali quickly determined to continue to consolidate the core competitiveness of Dongfanghong, continue to take the road of steady development, and let the correct decisions and actions bloom in the future.

In the interview, Hu Yali prefers to refer to Dongfanghong Asset Management as a young company, even though the company has been established for 11 years. In its view, compared with the excellent asset management institutions at home and abroad, the company still has room for improvement, the future road is still very long, the current need to adhere to and inherit on the basis of continuous evolution, not only to pay attention to long-term performance, stable growth in scale, product innovation and many other "visible" achievements, but also to continue to cultivate, improve the efficiency of investment and research conversion, improve the organizational structure and other "invisible" internal strength.

Do incrementally on research

Improve the conversion rate of investment and research

Before entering Dongfanghong Asset Management, in the past 18 years, Hu Yali's experience has focused on the research lines of first-class securities companies such as China Merchants Securities and CITIC Securities, and most of the time she has insisted on doing first-line seller research, and has won the platinum analyst of "New Fortune" for 9 consecutive years. Later, he served as the director of the research institute in Everbright Securities, engaged in the research and management of sellers for a period of time, and experienced the process of China's capital market moving towards standardized development. During this period, the capital market ushered in unprecedented development opportunities, and various institutions also paid more and more attention to improving the level of investment research, and the competitiveness of investment research was continuously enhanced. Due to her many years of deep research, Hu Yali has formed a professional and unique insight into the investment research business.

Hu Yali admitted that in recent years, the pressure of sell-side research on the whole market service has been increasing, taking on more organizational and service functions, and it is increasingly difficult to focus on research. After years of talent precipitation and mechanism improvement, the research level of the buyer's institution is rapidly improving. Hu Yali has been committed to being a professional in the field of research, and in this situation, she decided to transform buyer research. After joining Dongfanghong Asset Management, the Equity Research Department became one of the departments she was responsible for managing.

In Hu Yali's view, the research business dimensions of buyers and sellers are different and similar, essentially value discovery, embodied in asset pricing, but the goal orientation of the work is different. The seller's business model is to let as many external customers as possible recognize, reflected in the commission acquisition or evaluation of the top ranking, the seller's research in addition to the basic skills of research, but also to train the research "seen" quality. The seller's coverage of the subject matter in each area of study is comprehensive, but the clarity of the point of view is often weakened. In contrast, the buyer's value discovery path is more direct, and the research work returns to the essence of value discovery. Hu Yali said that the function of buyer research is to support internal investment and pursue research conversion rates. Researchers in the buyer's institution need to do a good job in internal services, turn research into real investment, and put forward higher requirements for the breadth, depth and accuracy of research.

"In the A-share market, sellers think more about winning rates, while buyers analyze the perspective of both winning rates and odds. Buyer researchers do not require uniform coverage of stock research in a single field, but researchers need to have industry comparative thinking", in the creation of the company's equity research team, Hu Yali said that it is currently trying to do incremental, on the basis of the original top-down research stocks, supplement the top-down thinking framework, add new perspectives to the strong allocation field, and improve the relationship between industry-wide research coverage and investment support in key areas.

In its view, a good research team needs to meet five conditions. The first is that the goals and values are consistent between the team members and the platform; second, to do research at the buyer, the research team members need to have the awareness and ability to output and transform the research.

"Excellent researchers need to have self-driving power in this regard, improve the depth and granularity of their research, and consider the key breakthrough points of research transformation." Improving the transformation of investment research requires improving all aspects of ability, including basic research skills, professional judgment ability and professional ability, we will analyze how to enhance the trust of the investment department for researchers and improve persuasion according to the characteristics of each researcher and each research field" In Hu Yali's view, there is no shortage of information input research support in the market, and it is worth studying deeply is cognitive-driven research persuasion.

"Under the drastic changes in the external environment, researchers must first ingest enough rich information, which requires curiosity, followed by making independent judgments, and the latter tests the ability to recognize," Hu Yali told reporters, investment is nothing more than making money in two aspects, one is poor information, one is poor cognition, and the professional ability that cannot be copied is precisely reflected in poor cognition.

In terms of supplementing the team's top-down research methodology, Hu Yali advocates the framework of industrial research and pays attention to cultivating the team's industrial research ability. "In the previous economic operation environment with real estate as the driving force, the boundaries between various industries are relatively clear, and now in the new economic environment, the boundaries between industries have become blurred, the integration between industries is the trend of the times, and the business of various industries and listed companies is constantly changing and integrating." The trend of industrial integration has put forward requirements for the research team to expand the scope of research and broaden the field of research coverage," Hu Yali said.

At present, the investment research team of Dongfanghong Asset Management has formed an "olive-shaped" talent echelon and a team culture of "passing on the help" type of open sharing, and most of the teams are mesozoic. In the interview, Hu Yali said that as far as the equity research team is concerned, the company is focusing on building a talent echelon with richer sources and more complete age levels.

"The company's equity research team is further supplementing professionals with rich experience in industry background or market research, and the weaker links in the coverage of industry research, such as the pharmaceutical industry, are strengthened by introducing external seniors and supplementing graduates, and it is planned to form a group of 6 people, which is a high staffing in the buyer team," Hu Yali said, adding that the company will also strengthen the coverage of the technology and manufacturing industries in the future, but in her view, although challenging, the research department needs to have a "full menu" Support the capacity of the investment sector.

"We need to increase the ability of the research department to provide 'full menu' support, in this process, will add some industry tracking assessment indicators", Hu Yali said, in order to better implement the previous company's emphasis on the research contribution to the investment sector, the future will add some quantitative indicators in the management process of the research team, such as the ability to track the market, etc., to guide researchers to achieve a wider range of research coverage, improve the efficiency of research to investment conversion, and continue to strengthen the company's concept and institutional arrangements for investment integration.

In the interview, Hu Yali likened research to "ploughing the field", in her view, research and "ploughing" are similar in nature, and both need to continuously improve output efficiency. He said that the primary goal of equity research is to provide stronger support for investment, and to cultivate and transport talents for the investment team, and in this direction, the construction of the equity research team needs to be continuously improved and optimized.

Do addition on inheritance

Enhance core competitiveness

In the asset management circle, Dongfanghong Asset Management has a differentiated core competitiveness and brand reputation, is one of the earliest and largest companies to issue closed-end funds, through innovative product forms and continuous accompaniment, the company has played an active role in improving the investor investment experience and making money effect, guiding long-term funds into the market and other aspects of the entire industry.

In 2011, when the market was sluggish, the company successfully issued Dongfang Hong Xinrui No. 1 with a two-and-a-half-year closed period, and in September 2014, the company was the first in the industry to issue a three-year closed equity fund - Dongfang Hong Ruifeng Hybrid Fund. As of June 30 this year, the scale of the closed operation products of the rights and interests under the Oriental Red Flag exceeded 100 billion, becoming the most complete, the largest number and the largest company in the closed operation product line in the industry. At the same time, based on the fact that investors have obtained a better investment experience in the closed operation equity fund, Dongfanghong Asset Management has simultaneously promoted the closed operation model to the "fixed income +" product, and since December 2017, it has launched a series of "fixed income +" products with a closed period, such as the three-year partial debt hybrid fund Dongfanghong Target Selection.

"Next, in terms of product innovation, we will continue to promote closed products as long-term investment tools, product design around active management", Hu Yali said, the company will continue to adhere to the focus on long-term, value investment, around the "better investment experience", firm long-term value investment concept, and constantly enhance core competitiveness, actively promote product innovation, upgrade and optimize brand strategy, and improve the construction of talent mechanism.

Talent is the most core asset of asset management institutions. After 11 years of development, there are still people who have changed along with Dongfanghong Asset Management. With the ups and downs of the capital market and the development of the company, the investment research team of Dongfanghong Asset Management is also constantly iterating and evolving.

"We understand the holders' thoughts and concerns, but the foundation of the company is very good, and the sense of identity and consistency of the internal cultural philosophy has not changed. After years of tempering and shaping, the company's investment research team has formed a value investment concept based on in-depth fundamental research, and this concept and culture have been immersed in the blood of the overall team. From senior fund managers to young researchers, everyone's working style and communication language are consistent, and their diligent and conscientious professional attitude is also the same, which will not change now or in the future," said Hu Yali, who said that the company will lay a solid foundation and continue to move forward along the established correct path.

"We will stick to two points, one is to do what we can do, and the other is to continuously expand our circle of ability," Hu Yali said.

Within Dongfanghong Asset Management, there is a very simple "methodology" - honesty is one of the best strategies, if the left hand holds honesty, the right hand holds patience, investors will benefit immensely. Of course, the ups and downs of the market and the occasional impetuousness are not only the need for long-term thinking by asset managers, but also how to cultivate the patience of investors.

Hu Yali said that since its inception, Dongfanghong Asset Management has attached great importance to investor companionship, persistently carried out investor guidance and companionship activities, guided investors to establish reasonable return expectations, corrected cognitive biases and behavioral biases, and led long-term investment.

In August 2015, when the market was undergoing drastic adjustments, Dongfanghong Asset Management launched the "Dongfanghong Wanli" customer service activity, which went deep into various bank outlets, brokerage business departments, institutional customers, enterprises and institutions and universities to communicate with investors through face-to-face lectures, forums and online activities. Up to now, the event has spread to hundreds of cities across the country, with a total of more than 9900 concerts, which have received positive responses from participants and the whole industry. The marketing department has also developed various forms of online services, making full use of financial technology and Internet platforms to expand the coverage and dissemination efficiency of professional services.

As a young asset management institution, while attaching importance to the adherence and inheritance of cultural concepts and fine traditions, Hu Yali believes that the future of Dongfanghong Asset Management is still very long and also needs continuous evolution. She said that the company will take professional investment research as the source of value, take boutique products as investment tools, take professional services as long-term linkages, continuously consolidate core competitiveness, and strive to achieve the lowest loss from investment research value to investment income conversion, and earn long-term sustainable returns for the majority of holders.

EDIT: Captain

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