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China News Service, July 18 (Zhou Yihang) Recently, Soochow Fund announced the 2024 second quarter reports of two funds managed by Liu Yuanhai - Soochow Mobile Internet Flexible Allocation Mixed Fund (hereinafter referred to as Soochow Mobile Internet Fund) and Soochow New Energy Vehicle Stock Fund (hereinafter referred to as Soochow New Energy Vehicle Fund).

According to the data, as of July 17, the A and C shares of Soochow Mobile Internet Fund achieved a year-to-date return of 27.65% and 27.51% respectively, and the A and C shares of Soochow New Energy Vehicle Fund achieved a year-to-date return of 9.51% and 9.27% ​​respectively, ranking first among similar products. In addition, the management scale of Soochow Mobile Internet increased by 1.554 billion yuan compared with the first quarter, while the management scale of Soochow New Energy Vehicle decreased by 42 million yuan compared with the first quarter. Liu Yuanhai's overall management scale increased to 4.682 billion yuan.

　　Relying on AI to “turn the tables”

Dongwu Mobile Internet Fund was established in May 2015 and was initially managed by Dai Bin. In 2016, Liu Yuanhai joined and co-managed the fund with Dai Bin. On May 6, 2017, after Dai Bin resigned from the product, Liu Yuanhai managed the fund alone.

Judging from the yield of Class A shares of Soochow Mobile Internet Fund, from 2016 to 2018, the fund's yields were -2.97%, 11.93% and -29.69% respectively; from 2019 to 2021, the fund's yield rebounded, achieving yields of 30.05%, 66.13% and 51.06% respectively; in 2022, the return rate of Class A shares of Soochow Mobile Internet Fund was -33.8%, failing to outperform the benchmark of -17.82%.

Until 2023, benefiting from the artificial intelligence market, the income and scale of Soochow Mobile Internet Fund ushered in a strong rebound. In 2023, the Class A shares of Soochow Mobile Internet Fund closed up 44.92% for the whole year, ranking second among similar products. In 2024, the fund continued its previous performance. As of July 17, the annual return of Class A shares of Soochow Mobile Internet Fund was 27.65%, ranking fifth among 2,301 similar funds, and leading the industry.

Another fund managed by Liu Yuanhai, Soochow New Energy Vehicle, also performed well. The fund was established in January 2022 and has been managed by Liu Yuanhai since its establishment. In 2023, the return rates of Class A and Class C shares of Soochow New Energy Vehicle Fund were 19.89% and 19.41%, ranking 4/826 and 5/826 in the same category. As of July 17, 2024, the return rates of Class A and Class C shares of the fund so far this year were 9.51% and 9.27%, respectively, ranking 72/935 and 76/935 in the same category.

The outstanding performance of the above-mentioned funds is due to the hot artificial intelligence market.

In the first quarter of 2023, Liu Yuanhai seized the opportunity of the artificial intelligence market. The technology stocks such as Kingsoft Office, Haiguang Information, Zhongji Xuchuang, and iFlytek, which were heavily invested in the A shares of Soochow Mobile Internet Fund, rose by 70% to 120%, and the fund's income rebounded strongly. Although the growth rate fell in the third and fourth quarters of 2023, the annual income remained at 44.92%.

Judging from the holdings in the second quarter of 2024, the top ten heavily-held stocks of Soochow Mobile Internet Fund A shares are Luxshare Precision, GigaDevice, Goertek, Will Semiconductor, Innolight, Shanghai Electric, New EasySun, Pengding Holdings, Crystal Optech and Foxconn Industrial Internet.Compared with the first quarter, the fund significantly increased its holdings in Luxshare Precision, Weilan Technology, Innolight, Shanghai Electric Co., Ltd. and other stocks.

Source: Wind

The top ten heavily-weighted stocks of Soochow New Energy Vehicle Fund A shares in the second quarter were Luxshare Precision, Will Semiconductor, CATL, Crystal Optech, Desay SV, GigaDevice, BYD, Avionics Holdings, Top Group, and Shanghai Electric. Many of the heavily-weighted stocks rose significantly within the range, among which Avionics Holdings closed up 74.04%, Luxshare Precision and GigaDevice closed up 33.66% and 33.05%, respectively.

　　Maintaining a high proportion of positions, the scale increased by 72% in the second quarter

In terms of positions, as of the end of the first quarter, the equity position of Class A shares of Soochow Mobile Internet Fund was 89.67%, which increased to 91.11% by the end of the second quarter; the equity position of Class A shares of Soochow New Energy Vehicle Fund was also increasing, from 90.97% at the end of the first quarter to 92.69%.

Regarding the second quarter's adjustment ideas, Liu Yuanhai pointed out in the second quarter report of Dongwu Mobile Internet Fund that in the second quarter of this year, the A-share market showed an "inverted V" trend, rising first and then falling. From the perspective of industry performance, in the second quarter, dividend assets represented by banks, utilities and coal, as well as AI computing power and AI hardware represented by optical modules performed relatively strongly, that is, dividend assets and technology performed relatively well.

"Since this round of global technological innovation is driven by AI, we believe that the core of future technology stock investment strategy may be to embrace AI. Whoever has a higher AI content may have greater investment opportunities." In Liu Yuanhai's view,Since last year, AI computing power has performed relatively strongly. The demand for AI computing power is expected to maintain a rapid growth trend in the future, and there may still be investment opportunities in AI computing power.

China News Service noted that the improvement in product performance also directly led to a significant increase in the size of the Soochow Mobile Internet Fund. The second quarter report showed that the total size of the fund increased from 2.152 billion yuan at the end of the first quarter to 3.706 billion yuan, a year-on-year increase of 72.21%.

From the historical management scale, in 2018 and 2019, the management scale of Dongwu Mobile Internet always hovered below 200 million yuan. In 2020, the scale of Dongwu Mobile Internet Fund fell to 78 million yuan. In the following 2021 and 2022, the scale of the fund was 95 million yuan and 61 million yuan respectively, almost close to the liquidation line. It was not until 2023 that the scale of the fund achieved a breakthrough and surged to 1.259 billion yuan.

Changes in the scale of Dongwu Mobile Internet management Source: Wind

Wind data shows that as of July 17, there are 34 products under Soochow Fund, of which only five have a scale of more than 1 billion yuan. The management scale of Soochow Alpha, Soochow Value Growth, Soochow Allocation Optimization and Soochow Medical Services are all less than 100 million yuan.

(For more reporting clues, please contact the author Zhou Yihang: [email protected]) (China News Service APP)

　　(The views in this article are for reference only and do not constitute investment advice. Investment is risky and you should be cautious when entering the market.)

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Editor: Wei Wei and Li Zhongyuan