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China Fund News reporter Fang Li and Lu Huijing

Another billion-dollar fund manager has bid farewell to the public fund industry.

On July 21, Zhonggeng Fund issued an announcement stating thatDue to personal reasons, Qiu Dongrong will resign as fund manager of five products including Zhonggeng Value Navigator from July 19, 2024, and will no longer serve as deputy general manager of Zhonggeng Fund.This also means that the previously circulated rumors about Qiu Dongrong's resignation have finally been settled.

At the same time, Qiu Dongrong responded by forwarding a letter to investors issued by Zhonggeng Fund on his WeChat Moments.

Qiu Dongrong officially resigns

Fund manager of 5 Zhonggeng funds

This weekend, the public fund circle ushered in major personnel changes again.

In April this year, news that Qiu Dongrong might step down circulated in the fund circle, attracting industry attention. Now, with an announcement, the rumor has finally come true.

On July 21, Zhonggeng Fund announced that Qiu Dongrong will resign from his position as chairman of the board of directors from July 19, 2024 due to personal reasons.Zhonggeng Value Pilot Mixed Fund, Zhonggeng Xiaopan Value Stock Fund, Zhonggeng Value Flexible Allocation Mixed Fund, Zhonggeng Hong Kong Stock Connect Value Stock Fund, Zhonggeng Value Quality One-Year Holding Period Mixed Fund The fund managers of 5 funds, etc.No longer serves as deputy general manager of Zhonggeng FundAnd other duties.

There were signs of Qiu Dongrong's resignation. On May 11, Zhonggeng Fund issued an announcement that the two funds managed by Qiu Dongrong, Zhonggeng Value Pilot and Zhonggeng Value Quality, were respectively hired by Liu Sheng and Wu Chenggen to co-manage. The only products he managed alone were Zhonggeng Small Cap Value and Zhonggeng Hong Kong Stock Connect Value.

In the past, the recruitment of fund managers in the fund industry was often accompanied by a series of personnel changes such as resignation. At that time, the industry also expected that this recruitment action might be a preparation for Qiu Dongrong's future resignation. After the closed period of the Zhonggeng Hong Kong Stock Connect Value 18-month Closed Operation Equity Fund ended on July 11, Qiu Dongrong might choose to resign. Now, less than 10 working days after the fund's closed period opened, Qiu Dongrong officially announced his resignation.

Qiu Dongrong can be regarded as a representative of the "low-valuation value school". He has been engaged in securities investment management since 2008. He has served as a researcher at the Shanghai Representative Office of Qun Yi International Holdings Co., Ltd., an industry researcher at HSBC Jinxin, a senior researcher, director of the stock investment department, and assistant to the general manager. In May 2018, he joined Zhonggeng Fund as the company's deputy general manager and chief investment officer.

Wind data shows that since he took over as fund manager on September 16, 2014 and stepped down on July 19 this year, his total return during his tenure was 482.46%, with an annualized return of 19.59%, while the total return of the CSI 300 Index during the same period was 77.91%.

The total size of funds managed by Qiu Dongrong exceeded 32 billion yuan at the end of the first quarter of 2023. However, affected by rumors of his resignation, as of the end of the second quarter of this year, the size of the funds he managed dropped to 14.708 billion yuan, a decrease of 5.1 billion yuan compared to the end of the first quarter of this year.

Zhonggeng Fund released

A letter to investors

Qiu Dongrong can be said to be the soul of Zhonggeng Fund. His departure has attracted market attention. At this critical moment, Zhonggeng Fund released "Gathering Value and Starting Again: A Letter to Investors from Zhonggeng Fund".

In this letter, in addition to sincerely thanking Qiu Dongrong for his outstanding contributions during his tenure, Zhonggeng Fund also talked about the investment and research philosophy of this six-year-old fund company.

The letter states that since its establishment, Zhonggeng Fund has been committed to establishing a first-class competitive advantage in the field of active equity investment through a continuously evolving low-valuation value investment strategy system. The low-valuation value investment strategy system is like a mature modern "factory". In this "factory", relying on the underlying unified low-valuation value investment strategy, it has gathered outstanding talents, established a three-dimensional investment research process, and brought together the alphas of each person, each team and different levels in the investment research team into a high alpha collection, seeking to form an "alpha superposition" effect, so as to better play the effectiveness of the systematic development of investment research, and ultimately better serve each product in the "factory".

In terms of investment research team building, Zhonggeng Fund has currently built an investment research team of nearly 40 people. At the same time, it continues to expand the scope of research coverage, from A-shares to Hong Kong Stock Connect stocks, from individual companies to companies in the same industry and the same industrial chain, to form a three-dimensional industry and industrial perspective, so as to enhance a deeper understanding of individual stock research and avoid simple linear extrapolation and the influence of market sentiment. After nearly six years of integrated investment research construction and practice, the low-valuation value investment strategy system has become increasingly perfect and constantly evolving. It has very strong vitality and inclusiveness, and will continue to "escort" product performance.

Qiu Dongrong responded in a circle of friends

Just now, Qiu Dongrong forwarded the above letter to the holders of Zhonggeng Fund in his circle of friends and responded, "I am very grateful to the holders, partners, leaders and friends for their support and trust along the way. I am very grateful for the support and help given by the shareholders, directors, leaders and colleagues of Zhonggeng Fund. I am very honored to participate in, witness and accompany the company from the establishment of the strategic development positioning of 'Zhonggeng Fund, deepening value and only doing value investment' before its establishment to the continuous implementation and realization process over the past 6 years. I am proud of it."

Qiu Dongrong said that in the past six years, we have experienced a tortuous growth process together, and the value investment strategy system based on uncertainty pricing has also experienced constant challenges and continuous evolution. In the face of an uncertain market, we are also constantly moving forward bravely and continuously challenging new sources of excess returns. In terms of marketing and customer service, we always adhere to the fundamental starting point of "real returns for investors" and hope to improve the returns of holders and reduce investment risks through counter-trend marketing and strict purchase restrictions at high levels.

Qiu Dongrong said that although he resigned as fund manager due to personal reasons, as one of the thousands of holders, he sincerely wished Zhonggeng Fund to get better and better and wished investors a smooth investment.

Funds under management

Taken over by fund managers under Zhonggeng

According to the announcement, the funds managed by Qiu Dongrong will be taken over by other fund managers under Zhonggeng Fund.

in,Liu Sheng serves as the fund manager of Zhonggeng Value Pilot FundAccording to public information, Liu Sheng holds a Ph.D. in Chemistry from Nanjing University and has nearly nine years of experience in the securities industry. He has served as a researcher in the research department of Taiping Asset Management and a researcher in the investment department of HSBC Jinxin Fund. In July 2018, Liu Sheng joined Zhonggeng Fund and served as a researcher, assistant investment manager, and investment manager. He is currently the director of the investment department research department and a fund manager.

On the basis of managing the Zhonggeng Value Pioneer Fund, Chen Tao serves as the fund manager of the Zhonggeng Small Cap Value Fund.Chen Tao holds a master's degree in engineering. He previously served as a researcher at Taikang Asset Management, a senior analyst at Huachuang Securities, a senior researcher at Zheshang Fund, and an investment manager at HSBC Jinxin Fund. He is currently a fund manager at Zhonggeng Fund.

Wu Chenggen serves as the fund manager of Zhonggeng Value Dynamic Fund and Zhonggeng Value Quality Fund.He has been engaged in securities investment management since 2012, and has served as a trust assistant, junior trust manager, trust manager, and investment manager at AVIC Trust. In January 2019, he joined Zhonggeng Fund and is currently a fund manager in the company's investment department.

Sun Xiao serves as the fund manager of the Zhonggeng Hong Kong Stock Connect Value Fund.It is reported that Sun Xiao has extensive experience in Hong Kong stocks and overseas investment research and has a diversified investment vision.

Zhonggeng Fund expressed its sincere gratitude to Qiu Dongrong for his outstanding contributions during his tenure and his valuable efforts in the construction and improvement of Zhonggeng Fund's low-valuation value investment strategy system. The fund manager team independently cultivated by Zhonggeng Fund will continue to play a professional alpha and jointly manage Zhonggeng Fund's low-valuation value strategy product line with the help of systematic advantages and strengths.

Attachment: Full text of a letter from Zhonggeng Fund to investors

Editor: Xiaomo

Review: Xu Wen

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