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(Original title: A product of Xingquan’s famous fund manager “evaporated” 800 million shares in one month)

Consumer Daily News (Reporter Lu Yue) Recently,fundThe second quarter report is out. According to the second quarter report data, the shares of Xingzheng Global Innovation Advantage Mixed A and C funds under Xingzheng Global Fund have fallen by nearly 90% since their establishment more than three months ago.

Specifically, Xingzheng Global Innovation Advantage Mixed A and C were established on March 26, 2024. The total number of valid subscription shares during the concentrated subscription period was 914,763,237.92. The fund was open for subscription and redemption from May 6, 2024. As of the end of the second quarter of 2024, the total number of shares was 106,429,646.31, a decrease of nearly 90% compared to the time of subscription.

Is the sharp drop in shares due to the withdrawal of "helping funds"? Xingzheng Global Fund told our reporter: "There is no problem of helping funds in the new issuance of Xingzheng Global Innovation Advantage. The decline in shares is mainly due to market conditions. The probability of large-scale redemption caused by the withdrawal of institutional investors is not high, because institutions tend to choose funds with relatively stable scale and operating for a period of time for investment and allocation, and generally do not enter the market in large numbers when a fund is newly issued."

1

The share fell by nearly 90%

According to the data, Xingzheng Global Innovation Advantage Mixed A and C are mixed equity funds, established on March 26, 2024. At present, the scale of Class A shares is 24 million yuan, with a return of -2.02% in the past month, -3.52% in the past three months, and -3.38% since its establishment; the scale of Class C shares is 81 million yuan, with a return of -2.06% in the past month, -3.67% in the past three months, and -3.57% since its establishment.

Data shows that the total number of valid subscription shares at the end of the concentrated subscription of Xingzheng Global Innovation Advantage Mixed A and C was 914,763,237.92 shares; as of the end of the second quarter of 2024, the total number of shares was 106,429,646.31 shares, a decrease of 88.37% from the time of subscription.

Data on effective subscription shares of Xingzheng Global Innovation Advantage Hybrid A and C

Total share data of Xingzheng Global Innovation Advantage Mixed A and C at the end of the second quarter

On March 23, 2024, Xingzheng Global Fund announced that it would terminate the fundraising of Xingzheng Global Innovation Advantage Mixed Fund A and C ahead of schedule. The fund started fundraising on February 23, 2024, and the original fundraising deadline was April 3, 2024. As of March 22, 2024, the fund's fundraising situation has met the filing conditions for the effectiveness of the fund contract. In order to safeguard the interests of fund investors and ensure the smooth operation of the fund in the future, the fund will end fundraising ahead of schedule.

Specifically, the valid subscription shares of Xingzheng Global Innovation Advantage Hybrid A are 33,180,599.95 shares, and the valid subscription shares of Xingzheng Global Innovation Advantage Hybrid C are 881,582,637.97 shares, totaling 914,763,237.92 shares.

However, what is shocking is that on May 6, after the subscription and redemption were liberalized, the fund shares "evaporated" by 800 million shares in just one month.

As of the end of the second quarter, the total number of shares of Xingzheng Global Innovation Advantage Mixed A was 24,511,044.88 shares, and the total number of shares of Xingzheng Global Innovation Advantage Mixed C was 81,918,601.43 shares, totaling 106,429,646.31 shares.

According to analysis by industry insiders, there are three possible reasons for the 90% drop in the share price of Xingzheng Global Innovation Advantage Mixed Fund: first, large-scale redemptions by investors, which is often related to the performance of the fund, but the fund did not build a position when the share price fell sharply, so the reason for the poor performance of the fund was ruled out, and the reason for investors' redemption may be the need to use funds; second, the decline in fund size, which is related to the amount of redemption and subscription; third, the pessimistic sentiment in the market will also influence investors' decisions.

In an interview with a reporter from Consumer Daily, Xingzheng Global Fund stated that since the establishment of Xingzheng Global Innovation Advantage Hybrid Fund, the equity market has fluctuated at a low level. When the fund was newly established, the C shares accounted for a large proportion, and the short-term fund subscription and redemption were highly correlated with the market trend. The main reason for the decline in shares this time was the sluggish market.

It is reported that since 2024, the total market volume of active equity funds has been on a downward trend. According to a research report by Changjiang Securities, in the second quarter of 2024, the total weighted share of active equity in the entire market decreased by 7.02%, and in the first quarter of 2024, it decreased by 7.33%, which was 19.38% lower than the peak in the first quarter of 2022. At the micro level, GF Growth Sailing A and C were established on March 19, 2024, and their shares have fallen by 92.17% since their establishment; Wanjia State-owned Enterprise Power Hybrid A and C were established on March 20, 2024, and their shares have fallen by 74.34% since their establishment.

At present, there is no public channel to obtain the structure of fund unit holders, so the number and proportion of individual investors and institutional investors of Industrial Securities Global Innovation Advantage Mixed A and C are still unclear. In an interview with the reporter of Consumer Daily, Industrial Securities Global Fund stated that the proportion of holders will be disclosed in the semi-annual report, and it cannot be disclosed at present because it involves confidentiality issues.

The above-mentioned industry insider also said that such a large drop in share will have adverse effects on investors. First, the initial investment value is facing shrinkage; second, this may cause panic and anxiety among investors, especially for those who are not familiar with market volatility; third, a large drop in share may increase the difficulty of subsequent operations.

The reporter also found that there were several mixed equity funds that also experienced a decline in shares, but the decline in shares was not that large. For example, from the date of establishment to the end of the second quarter of this year, the shares of Xingzheng Global Xinyue Mixed A and C fell by 22.86%, the shares of Xingquan Shanghai-Hong Kong-Shenzhen Two-Year Holding Mixed fell by 30.64%, and the shares of Xingquan Selected Mixed fell by 26.27%.

2

Will Xingquan’s competitive advantage repeat the same mistakes?

According to the data, Xingzheng Global Fund was established on September 30, 2003. In January 2008, the China Securities Regulatory Commission approved Global Life Insurance International to acquire the company's equity and become a shareholder of the company. On April 9, 2008, after the company completed the equity transfer, change of registered capital and other related procedures, the company's registered capital was RMB 120 million, of which Industrial Securities Co., Ltd. accounted for 51% of the registered capital and Global Life Insurance International accounted for 49%.

Data shows that the total asset management scale of Xingzheng Global Fund is 602.4 billion yuan, with 118 funds and 37 fund managers. Among them, the scale of money market funds is 323.5 billion yuan, accounting for more than 50%.

Recently, Xingzheng Global Fund has launched two new funds.BondsA and C are in the subscription period, with the subscription start date being July 17, 2024 and the subscription end date being July 31, 2024. This fund belongs to the bond-mixed secondary fund. Another newly issued fund, Xingzheng Global Competitive Advantage Mixed A and C, is about to enter the subscription period, with the concentrated subscription period starting from August 5, 2024 to August 23, 2024.

According to the information, the fund manager of Xingzheng Global Competitive Advantage Mixed Fund A and C is Xu Liuming. He is a master of science. From March 2013 to September 2014, he worked as an analyst at Guolian Securities Co., Ltd. From September 2014 to March 2020, he worked as an analyst at Industrial Securities Co., Ltd. From April 2020 to date, he has worked at Xingzheng Global Fund Management Co., Ltd., successively serving as a researcher and assistant fund manager, and has served as a fund manager since 2021.

Xu Liuming also manages three other funds, namely, Xingzheng Global Zhaoyi Bond A and C, Xingquan Huixiang One-Year Holding Mixed A and C, and Xingquan Hengyi Bond A and C. Among them, Xingzheng Global Zhaoyi Bond A and C have positive returns, with the returns of A and C shares being 1.76% and 1.33% respectively; Xingquan Hengyi Bond A and C have negative returns, with the returns of A and C shares being -7.62% and -8.58% respectively; Xingquan Huixiang One-Year Holding Mixed A and C have returns of -3.75% and -4.05% respectively.

According to the information, Zhu Zhefeng is the fund manager of Xingzheng Global Fund Bond A and C. He has a postgraduate degree and worked as a researcher at Changsheng Fund Management Co., Ltd. from February 2017 to May 2018. In May 2018, he joined Xingzheng Global Fund Management Co., Ltd. and served as a researcher and assistant fund manager. On March 1, 2022, Zhu Zhefeng began to serve as the fund manager of Xingquan Hengxin Bond Fund; on July 24, 2023, he began to serve as the fund manager of Xingquan Huihong One-Year Holding Period Mixed Fund.

Except for Xingzheng Global Fund Bond A and C, among the two funds managed by Zhu Zhefeng, the tenure returns of Xingquan Hengxin Bond A and C were -0.62% and -1.56% respectively; the tenure returns of Xingquan Huihong One-Year Holding Period Mixed A and C were 1.87% and 1.46% respectively.

Xingzheng Global Competitive Advantage Mixed Fund A and C and Xingzheng Global Innovation Advantage Mixed Fund A and C are both hybrid-equity funds. Will they repeat the mistakes of Xingquan Innovation Advantage Mixed Fund? Xingzheng Global Fund said in an interview with the reporter of Consumer Daily: "The subscription and redemption of funds are market behaviors. There is no way to make artificial predictions, but through the share structure we can see how many shares are held long-term and how many shares are held short-term. Since Xingzheng Global Competitive Advantage Mixed Fund A and C have not yet been established and the data has not yet been released, it is difficult to make substantive predictions."