Investment Fund Evaluation | China Securities Journal: Investment Guide For High-Quality Funds

Recently, the A-share market has pulled back after rising, and industry sectors have become differentiated. Overall, the technology sector is still in an upward cycle. Next year, with the arrival of 5G construction, 5G replacement peak, and other new technologies ushering in breakthroughs in the 5G era, there is still room for excess returns in the technology sector. It is recommended that investors pay attention to short-term risks while seizing the emerging industry layout opportunities brought by technological inflection points, and seize the opportunity to build positions in high-quality targets during short-term adjustments. The layout on the left allows you to obtain stable returns while controlling risks. This issue selects 4 bottom-up stock selection and long-term investment funds for analysis for investors' reference.

Create new horizons

Xingquan Vision is a flexible allocation fund under Xingquan Fund, established on July 1, 2015. The benchmark for fund performance comparison is an annualized rate of return of 6%. The fund is open regularly, with subscription and redemption open for 5 working days every three months. The latest opening date is expected to be the end of October.

Features

Stable and leading performance: The fund has been managed by Dong Chengfei since its establishment. As of October 11, 2019, the fund has achieved a return rate of 44.0% since its establishment, ranking in the top 10% of similar products and exceeding the average return rate of 33.4% for similar products during the same period. In the past year, the fund's return rate was 35.4%, ranking among the top 20% of similar products, exceeding the average return rate of 13.4% for similar products during the same period. Since the establishment of the fund, the annualized rate of return has been 8.9%.

Absolute return strategy + fundamental stock selection: The fund adopts a market-neutral investment strategy and selects companies with good fundamentals, strong profitability, and strong market competitiveness to build a long stock investment portfolio. At the same time, we strive to achieve stability through the flexible use of a variety of absolute return strategies. Absolutely rewarding. When constructing a long stock investment portfolio, the fund uses fundamental research as the basis and uses a variety of indicators to examine the valuation level of individual stocks, the growth and profitability of listed companies. In terms of qualitative indicators, the fund comprehensively examines the growth model, asset-light operating model, business model, industry barriers, channel control, corporate governance, etc., thereby providing corresponding discount and premium levels, and ultimately determining a reasonable discount and premium level. Stock price range.

Bottom-up stock selection and long-term investment: Since the establishment of the fund, it has gradually built positions and selected positions more carefully. Before 2018, the equity position remained below 70%. Since 2018, equity positions have been concentrated at around 75%. The fund maintains a certain bond position and seizes convertible bond investment opportunities. The industry allocation of the fund's stock investment portfolio is relatively balanced. Over the past two years, it has heavily invested in Songcheng Entertainment, Hengli Hydraulics, Poly Real Estate and other stocks, with a low turnover rate, showing the characteristics of bottom-up stock selection and long-term investment.

two

Invesco Great Wall Environmental Protection Advantages

Invesco Great Wall Environmental Advantage is an ordinary stock fund under Invesco Great Wall Fund and was established on March 15, 2016. The fund performance comparison benchmark is CSI Environmental Protection Industry Index return rate × 40% + CSI 300 Index return rate × 40% + CSI Total Bond Index return rate × 20%.

Features

Stable and leading performance over the years: As of October 11, 2019, the return rate of the fund product this year was 41.7%, significantly exceeding the return rate of the Shanghai and Shenzhen 300 Index and the comparison benchmark in the same period; in the long term, since the establishment of the fund, the return rate in each natural year Its performance is in the top 40% of its peers, with a return rate of 46.3% in the past three years, ranking in the top 15% of its peers, and its long-term performance is excellent.

Explore pan-environmental-themed products: Today, when ecological environment protection and construction are becoming increasingly important, the fund mainly explores companies with four major environmental advantages: environmental protection industry chain advantages, green economic advantages, efficiency social advantages, and sustainable development. Develop advantages and grasp the theme of environmental protection. Investment Opportunities. Managers mainly conduct bottom-up research on the company's intrinsic value, analyze the company's commercial value, valuation level, management capabilities, free cash flow, and dividend status, and explore companies with competitive advantages for long-term investment.

Explore the growth potential of enterprises from the bottom up and do not blindly follow hot spots: According to recent quarterly reports, the fund's heavy holdings mainly include growth stocks in industries such as electronics, medicine, and automobiles, and the market capitalization style is biased towards small and medium-cap stocks. The fund's heavy holdings of individual stocks are quite different from the market hot spots in recent years, and the courage to continue to hold them reflects the investment manager's left-hand layout and bottom-up exploration of the long-term growth value of individual stocks. individual stocks.

Fund managers have stable long-term performance: Fund manager Yang Ruiwen has nearly 5 years of experience as a fund manager. The long-term performance of fund products such as Invesco Great Wall Select and Invesco Great Wall Resource Monopoly that he has managed for a long time are also stable and leading, reflecting his better investment exploration. ability.

three,

China's return

China Return is a balanced hybrid fund under China Asset Management. Founded on September 5, 2003, the latest total scale is 11.51 billion yuan. The current fund managers are Cai Xiangyang and Lin Qingze. The benchmark for fund performance comparison is the bank's one-year time deposit interest rate during the same period.

Features

The mid- to long-term returns are stable: the product’s return rate in the past three years has reached 42.9%. During the same period, the CSI 300 Index rose only 18.3%, while similar products rose 15.2%. Over the medium term, performance is solid and excellent. At the same time, since its establishment, the fund's return rate has been as high as 1171.6%, ranking first among similar funds and leading in long-term performance.

Reasonably allocate assets and pursue absolute returns: The fund pursues absolute returns and achieves this goal mainly through active asset allocation. The fund prospectus points out that the securities market is constantly fluctuating, and returns are inevitably accompanied by risks. Through in-depth research on economic and market fundamentals, we can correctly judge the trends of each market, so that the fund can obtain higher returns.

Positions should be appropriately flexible, and the holding period of heavily held stocks should be longer: This product mainly achieves long-term income accumulation under risk control through flexible adjustment of positions, but managers will not choose extreme investment strategies of full or short positions. Except for extreme circumstances such as the third quarter of 2015, fund positions have always fluctuated within the 40%-70% range. From the perspective of heavy holdings, the direction of the fund's heavy holdings includes consumption, medicine, insurance and other sectors, and the holding period of heavy holdings often exceeds one year, and the holding period of individual stocks exceeds 3 years, which reflects its relatively stable and long-term investment philosophy.

Fund managers have rich experience and stable performance: the current fund manager Cai Xiangyang has more than 5 years of investment experience. Currently managing 4 products, its long-term performance is relatively stable, reflecting its good long-term risk and return control capabilities.

No. 4

HSBC Jintrust dual-core strategy

HSBC Jintrust Dual-Core Strategy is a flexible allocation fund under HSBC Funds. Founded on November 26, 2014, the latest scale is 3.66 billion yuan. The current fund manager is Xing Tao. The fund performance comparison benchmark is CSI 800 Index × 60% + ChinaBond New Composite Index × 40%.

Features

Excellent mid- and long-term performance: As of October 11, 2019, the fund has gained a cumulative increase of 108.3% since its establishment, ranking in the top 20% of its peers and exceeding the average return of similar products over the same period by 48.7%. The fund's return rate in the past three years was 22.9%, ranking among the top 30% of similar funds. During the same period, the return rate of similar funds was 14.6%, the return rate of the CSI 300 Index was 18.3%, and the return rate of the CSI 500 Index was -22.1%.

Introducing overseas asset management investment strategies: In terms of asset allocation, the fund adjusts equity positions with reference to the risk premium calculated by the asset allocation model. In terms of equity investment, based on the specific characteristics of China's capital market and drawing on HSBC Group's "-" investment strategy in overseas markets, the fund uses the PB indicator as the main indicator to examine valuation, and the ROE indicator as the main indicator to examine profitability, to select high-quality investments. Investment targets with low profitability and low valuation attributes constitute the core stock library. Then, by comprehensively analyzing the industry characteristics, profit model, operation and management capabilities, corporate governance status and other factors of listed companies, individual stocks are selected for investment.

The valuation is low and the left-investing style is obvious: from the perspective of PE, half of the funds have a PE of less than 15 times, and most of the funds have a PE of less than 20 times. The low valuation style is obvious. The fund has few stocks with high market attention, and has long-term heavy positions in stocks with low market attention such as China Resources Shuanghe, Huatai Holdings, and Blum Oriental. The turnover rate is low, the holding period is long, and it shows a left-hand investment style.

Important statement

Analyst Commitments

The securities analysts responsible for this research report hereby declare that this report clearly and accurately reflects the analysts' own research opinions. No part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or opinions contained in this report.

Analysts for this report

Zeng Kailing SAC Professional Certificate Number: S03

Yang Yuheng SAC professional certificate number: S02

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