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The long-rumored departure of Qiu Dongrong has been confirmed.

Today, Zhonggeng Fund officially announced that Qiu Dongrong resigned as the company's deputy general manager on July 19, and also resigned as the fund manager of the five funds he managed, including Zhonggeng Value Pilot Mixed Fund, Zhonggeng Small Cap Value Stock Fund, Zhonggeng Value Flexible Allocation Mixed Fund, Zhonggeng Value Quality One-Year Holding Mixed Fund, and Zhonggeng Hong Kong Stock Connect Value Stock Fund. The latest second quarter report shows that the size of the funds managed by Qiu Dongrong is 14.708 billion yuan.

As early as May 9, reporters had exclusively reported the information that he might leave office. At that time, it was not expected to be so soon and the whole process was expected to take some time.

Now, after a series of actions such as hiring additional fund managers and transforming closed-end funds, Qiu Dongrong's departure has officially been finalized. There are also many rumors in the industry about his whereabouts. Where will Qiu Dongrong's next stop be?

On the morning of July 21, Qiu Dongrong also quickly responded to his resignation on his WeChat Moments.

Zhonggeng Fund officially announced: Qiu Dongrong resigned

The latest announcement disclosed by Zhonggeng Fund shows that Qiu Dongrong resigned as the company's deputy general manager on July 19 for personal reasons.

At the same time, Qiu Dongrong also resigned as fund manager of the five funds he managed, namely, Zhonggeng Value Leader Mixed Fund, Zhonggeng Small Cap Value Stock, Zhonggeng Value Flexible Allocation Mixed Fund, Zhonggeng Value Quality One-Year Holding Period Mixed Fund, and Zhonggeng Hong Kong Stock Connect Value Stock.

After Qiu Dongrong left, in addition to the products that had previously hired fund managers, among the other funds, Zhonggeng Small Cap Value Stock was taken over by Chen Tao, who is currently still managing Zhonggeng Value Pioneer Stock; Zhonggeng Hong Kong Stock Connect Value Stock was taken over by Sun Xiao, who joined Zhonggeng Fund as a Hong Kong stock researcher in the investment department research department in May 2023.

On the morning of July 21, after Zhonggeng Fund announced Qiu Dongrong's resignation, he said in his circle of friends: "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 Zhonggeng Fund's shareholders, directors, leaders and colleagues. 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, "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."

Finally, Qiu Dongrong said, "Although I have resigned as fund manager for personal reasons, as one of the thousands of holders, I sincerely wish Zhonggeng Fund to get better and better and wish investors a smooth investment. Finally, thank you again for your concern for me ~ thank you very much."

Resignation rumors have been circulating for more than two months

As for Qiu Dongrong's resignation, in fact, as early as May 9, reporters had exclusively reported the information that he might resign. At that time, it was not expected to be so fast and the whole process was expected to take some time.

Subsequently, the products managed by Qiu Dongrong began to hire additional fund managers. Among them, Zhonggeng Value Leading Mixed Fund hired Liu Sheng as the fund manager of the fund, and Zhonggeng Value Quality One-Year Holding Period Mixed Fund hired Wu Chenggen as the fund manager of the fund.

One of the reasons why Qiu Dongrong's resignation has not been finalized is that the only 18-month closed-end fund he manages has not yet reached the end of its first closed-end period.

However, in July, according to the announcement of Zhonggeng Fund, the Zhonggeng Hong Kong Stock Connect Value 18-Month Closed Stock Fund, which was established on January 11, 2023, will be converted to open-end operation from July 11, 2024, and the fund name will be changed to "Zhonggeng Hong Kong Stock Connect Value Equity Securities Investment Fund".

As the fund became open-ended, Qiu Dongrong's departure continued to move forward, and the official announcement of his departure was finally released today.

The total size of the funds managed by Qiu Dongrong exceeded 32 billion yuan at the end of the first quarter of 2023, but then fell back. Affected by the rumors of his resignation, the size of the funds he managed fell to 14.708 billion yuan at the end of the second quarter of this year, a decrease of 5.1 billion yuan compared with the end of the first quarter of this year.

After the news of his resignation came out, many investors have chosen to redeem their shares. Judging from the second quarter report just released, many of the funds he managed have seen significant redemptions. Among them, the net redemption of Zhonggeng Value Pilot Mixed Fund exceeded 1 billion shares, and the net redemption of Zhonggeng Small Cap Value Fund exceeded 900 million shares.

Next stop attracts attention

Looking back at Qiu Dongrong's public fund experience over the years, he joined HSBC Jinxin Fund in 2010 and started managing public fund products in 2014. He became famous for the excellent performance of the HSBC Jinxin Large-Cap Equity Fund he managed. Then in 2018, he left HSBC Jinxin Fund and "switched" to Zhonggeng Fund. In December of that year, Qiu Dongrong's first product at Zhonggeng Fund, Zhonggeng Value Pilot Mixed Fund, was established, which has been more than 5 years ago.

In the first one or two years after "switching to" Zhonggeng Fund, the performance of the products managed by Qiu Dongrong was not outstanding, and even lost to the Shanghai and Shenzhen 300 Index. After 2021, his products began to gain momentum and gradually rushed to the forefront. Qiu Dongrong also returned to the investors' vision and was sought after by individual and institutional investors. As of his departure, the return of Zhonggeng Value Pilot Mixed Fund since its establishment exceeded 100%.

As performance improved, Qiu Dongrong's ties with Zhonggeng Fund continued to deepen. He not only served as the company's deputy general manager, but also became a shareholder with a relatively large shareholding ratio. According to the equity situation disclosed by Zhonggeng Fund in February this year, Qiu Dongrong's shareholding ratio was 9.73%.

This is also the reason why many investors and industry insiders were shocked when Qiu Dongrong was reported to be leaving. He has almost become the "golden signboard" of Zhonggeng Fund and has deep interests tied to him.

With the departure of Qiu Dongrong, the fund managers who took over the management of Zhonggeng Fund have basically managed funds for a short period of time. Whether they can support the current scale and achieve new breakthroughs remains to be further verified by the market.

As for Qiu Dongrong's next move, according to the reporter's understanding from the industry, there are currently various rumors. Some said that he would take a good rest first, and others said that he might get Hong Kong Type 9 license (that is, a license to provide asset management). The reporter also asked Qiu Dongrong for further confirmation, but has not yet obtained his confirmation.

Investment is risky, independent judgment is important

This article is for reference only and does not constitute a basis for buying or selling. You should bear the risks of entering the market at your own risk.

Cover image source: Visual China-VCG41N1162556855

Reporter Huang Xiaocong, editor Peng Shuiping

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