news

"Jinzhengyan" Southern Capital Center-Financial Report Interpretation Bo Nan/Author Nanzhi/Risk Control

Rich CountryfundMercury Retrograde Series 2

The larger the scale, the more critical the investment performance is.fundCalculated from the date of establishment, as of July 29, 2024, the total number of shares issued by public funds this year has exceeded 700 billion.Nine Articles"With the implementation of a series of new regulations, the high-quality development of the public fund industry is particularly important. At present, how fund companies can solve the dilemma of "fund companies make money, but fund investors do not make money" and protect the rights and interests of investors has been pushed into the "spotlight".

In response to the issue of "funds make money, but investors do not make money", Chen Ge, general manager of Fullgoal Fund Management Co., Ltd. (hereinafter referred to as "Fullgoal Fund"), once said in 2022 that "focus on core capability building and put the interests of holders first". In terms of "implementing the concept of "long-term value investment", Fullgoal Fund mainly explores and accumulates experience around "holder-centered", "fund sales follow the trend", and "high-quality companionship". However, Fullgoal Fund'sFOFThe rate of return was 2023 and the first quarter of 2024, and there was a large area of ​​loss. As the general manager, Chen Ge may have only managed one fund, and before leaving the fund, he may have bought more heavily in the stocks that fell.

Under the management of General Manager Chen Ge, the total profits achieved by the funds under Wells Fargo Fund in the past decade ranked low among the "old ten" fund companies, and collected management fees of more than 30 billion yuan. In addition, in 2023, nearly 40% of Wells Fargo Fund's products achieved negative returns, and the proportion was higher than the average of the other nine "old ten" fund companies. Not only that, 11 products under Wells Fargo Fund have won the "Golden Bull Award" in the past five years, and many of them underperformed the benchmark in the year of the award.

1. Several hybrid FOFs hold a large amount of bond funds, and only one stock FOF may "favor" its own products

In 2022, Chen Ge said that products such as FOF can effectively diversify the non-systematic risks of fund products and help investors obtain medium to high returns to a certain extent. So how does the FOF under Wells Fargo Fund perform?

Let’s first take a look at the number and scale of FOF products under China Asset Management.

According to the available data from Oriental Wealth Choice as of June 19, 2024, as of the end of the first quarter of 2024, there were approximately 16 FOFs in operation under China Asset Management Co., Ltd., with a combined net asset value of approximately RMB 3.219 billion. Based on the combined net asset value of the funds, the scale of China Asset Management Co., Ltd.'s FOF ranked 15th in the domestic public fund industry.

In terms of classification, as of the end of the first quarter of 2024, among the 16 FOFs in operation under China Asset Management, there were 1 equity FOF, 9 mixed FOFs, and 6 retirement-target FOFs.

Let’s take a look at the performance of the FOF products under China Asset Management in 2023 and the first quarter of 2024.

According to the available data from Oriental Wealth Choice as of June 19, 2024, it has been calculated that among the 16 established FOFs under China Asset Management, a total of 11 FOFs had negative returns in 2023; among the 16 established FOFs under China Asset Management, a total of 12 FOFs had negative returns in the first quarter of 2024.

It is worth noting that as of the end of the first quarter of 2024, there was only one equity FOF under the management of China Asset Management, namely China Asset Management Industry Select FOF, and the 1% yield of this equity FOF in 2023 and the first quarter of 2024 was both lower than -10%, at -12.73% and -14.78% respectively.

In addition, the Fuwu Industry Select FOF may also "favor" its own funds.

According to Oriental Fortune Choice data, as of the end of the first quarter of 2024, among the top 10 holdings of the Fuguo Industry Select FOF, 5 are other funds under Fuguo Fund, and all of them areETFThe products are, namely, the Wells Fargo CSI Military Industry Leader ETF, the Wells Fargo CSI Chip Industry ETF, the Wells Fargo CSI All-Share Home Appliances ETF, the Wells Fargo CSI All-Share Securities Company ETF, and the Wells Fargo CSI 800 Bank ETF. These five funds account for 12.04%, 10.26%, 9.98%, 9.63% and 6.42% of the net value of the Wells Fargo Industry Select FOF fund, respectively, totaling 48.33%.

In short, the decline of the Fuwu Industry Select FOF in the first quarter of 2024 exceeded the full year of 2023, and in the first quarter of 2024, the fund also invested nearly 50% of its net asset value in other products of Fuwu Fund.

In addition, as of the end of the first quarter of 2024, four mixed funds under China Asset Management, namely, China Asset Management's 12-month holding period mixed fund (FOF) A, China Asset Management's 12-month holding period mixed fund (FOF) A, China Asset Management's 3-month holding period mixed fund (FOF) A, and China Asset Management's 12-month holding period mixed fund (FOF) A, all held a large proportion of bond funds.

According to Oriental Wealth Choice data, it has been calculated that as of the end of the first quarter of 2024, among the top 10 holdings of Fuguo Zhiying Steady Progress 12-Month Holding Period Mixed (FOF) A, there are 9 bond funds, accounting for a total of 57.99% of the fund's net value; among the top 10 holdings of Fuguo Zhipu Steady Progress 12-Month Holding Mixed (FOF) A, 8 are bond funds, accounting for a total of 51.86% of the fund's net value; the top 10 holdings of Fuguo Zhixuan Steady Progress 3-Month Holding Mixed (FOF) A and Fuguo Zhihua Steady Progress 12-Month Holding Period Mixed (FOF) A are all bond funds, accounting for a total of 65.38% and 53.72% of the fund's net value respectively.

That is to say, in the first quarter of 2024, among the FOF products under China Asset Management, the only stock FOF invested nearly half of its net asset value in its own fund, and the yield in that quarter was less than -10%, while several mixed FOFs held a large amount of bond funds.

2. "Boss" Chen Ge may have only managed one fund, and he may have "bought more as the market fell" before leaving the position of fund manager

Currently, the general manager of Fuwu Fund is Chen Ge, who started working at Fuwu Fund as early as October 2000. However, he may have only managed one fund.

According to the "Announcement on the Change of Senior Management Personnel of Wells Fargo Fund Management Co., Ltd." issued by Wells Fargo Fund on January 29, 2014, Chen Ge was a researcher at the Research Institute of Guotai Junan Securities Co., Ltd. from December 1996 to October 2000; he was a researcher, fund manager, general manager of the research department, and assistant general manager at Wells Fargo Fund from October 2000 to November 2008; he has been the deputy general manager of Wells Fargo Fund and the fund manager of Wells Fargo Tianyi Value Securities Investment Fund (hereinafter referred to as "Wells Fargo Tianyi Value Mixed A") since November 2008. Since January 29, 2014, Chen Ge has been the general manager of Wells Fargo Fund.

According to the data from Oriental Wealth Choice, as of the query date of August 2, 2024, Chen Ge is the general manager and director of Wells Fargo Fund Management; Chen Ge has been the fund manager of Wells Fargo Tianyi Value Mixed A since April 13, 2005. On April 15, 2014, Chen Ge resigned as the fund manager of Wells Fargo Tianyi Value Mixed A, and the only fund he has managed is Wells Fargo Tianyi Value Mixed A. He may not have managed other funds after resigning from the fund.

During the more than nine years that Chen Ge managed the Fuguo Tianyi Value Mixed A Fund, from April 13, 2005 to April 14, 2014, it achieved a return rate of 362.16%, higher than the 131.8% increase of the CSI 300 Index during the same period.

In addition, during the period when Chen Ge served as the fund manager of the Fuguo Tianyi Value Mixed A, the net asset value of the fund first increased and then decreased, and in the four quarters before Chen Ge left office, the fund's heavy holdings may have "stepped on landmines" many times.

According to Oriental Wealth Choice data, after Chen Ge was appointed as the fund manager of the Fuguo Tianyi Value Mixed A on April 13, 2005, the net asset value of the fund was 179 million yuan and the number of shares was 166 million at the end of the second quarter of 2005; at the end of the first quarter of 2008, its net asset value was 15.89 billion yuan and the number of shares was 17.196 billion, and the net asset value was 88.77 times that at the end of the second quarter of 2005.

As of the end of the second quarter of 2011, the net asset value of Fuguo Tianyi Value Mixed A decreased to less than 10 billion yuan, to 9.366 billion yuan; at the end of the first quarter of 2014, the net asset value of Fuguo Tianyi Value Mixed A decreased to 5.998 billion yuan, and the shares decreased to 7.087 billion shares.

That is to say, from the first quarter of 2008 to before Chen Ge left office in 2014, the scale of the Fuguo Tianyi Value Mixed A showed a shrinking trend.

It is worth noting that in the four quarters before Chen Ge left office, the heavily weighted stocks of the Fuguo Tianyi Value Mixed A experienced a situation of "loss in the previous quarter, increase in holdings in the second quarter and greater losses".

According to the data from Oriental Fortune Choice, at the end of the first quarter of 2013, the holdings of Fuguo Tianyi Value Mixed AIndustrial Bank26.0841 million shares and WeiFu Hi-Tech 9.2142 million shares.

At the end of the second quarter of 2013, Fuguo Tianyi Value Mixed Fund A held 25.0041 million shares of Industrial Bank and 8.9635 million shares of Weifu High-Tech. In the second quarter of 2013, the increase of Industrial Bank and Weifu High-Tech was -14.62% and -11.29% respectively; in the third quarter of 2013, the increase of Industrial Bank and Weifu High-Tech was -24.37% and -29.35% respectively; and as of the end of the third quarter of 2013, the number of shares of Industrial Bank and Weifu High-Tech held by Fuguo Tianyi Value Mixed Fund A increased to 37.5062 million shares and 13.4453 million shares respectively.

In addition, at the end of the third quarter of 2013, Fuguo Tianyi Value Mixed A held 10.6619 million shares of Kelun Pharmaceutical and 6.5076 million shares of Dong-E E-Jiao.

At the end of the fourth quarter of 2013, Fuguo Tianyi Value Mixed Fund A held 10.6619 million shares of Kelun Pharmaceutical and 6.6858 million shares of Dong-E E-Jiao. In the fourth quarter of 2013, the growth rates of Kelun Pharmaceutical and Dong-E E-Jiao were -14.54% and -2.1% respectively; in the first quarter of 2014, the growth rates of Kelun Pharmaceutical and Dong-E E-Jiao were -12.18% and -13.8% respectively; and as of the end of the first quarter of 2014, the number of Kelun Pharmaceutical and Dong-E E-Jiao shares held by Fuguo Tianyi Value Mixed Fund A increased to 10.9451 million shares and 7.0171 million shares respectively.

In short, in the first four quarters after Chen Ge left the position of fund manager of Fuguo Tianyi Value Mixed A, the heavily-weighted stocks of Fuguo Tianyi Value Mixed A may have been "buyed more as they fell". And after leaving Fuguo Tianyi Value Mixed A, Chen Ge may not have managed the fund himself, and his investment research and fund management capabilities may have become a "mystery".

3. In the past ten years, China Asset Management has collected more than 30 billion yuan in management fees, and its total profit ranks at the bottom among the "old ten"

Under the management of General Manager Chen Ge, the total profit achieved by the funds under China Asset Management from 2014 to 2023 ranked behind the 14 fund companies that are among the "old ten" and the top 10 in terms of scale in the first quarter of 2024.

According to the available data of Oriental Wealth Choice as of June 19, 2024, it is estimated that from 2014 to 2023, the total profit realized by all funds under China Asset Management was approximately 29.43 billion yuan, ranking 13th among the 14 fund companies that are part of the "Old Ten" fund companies and the top 10 fund companies in terms of size in the first quarter of 2024.

Among the 14 fund companies, including the "old ten" fund companies and the top 10 fund companies in terms of scale in the first quarter of 2024, the funds under 8 fund companies achieved a total profit of more than 100 billion yuan from 2014 to 2023, while the funds under the fund companies ranked 9th to 12th achieved a total profit of more than 60 billion yuan from 2014 to 2023.

However, the funds under China Asset Management Co., Ltd. achieved a total profit of less than 30 billion yuan from 2014 to 2023, but collected management fees of more than 30 billion yuan during the same period.

According to available data from Oriental Wealth Choice as of June 19, 2024, from 2014 to 2023, the management fees collected by funds under China Asset Management totaled approximately 30.963 billion yuan, ranking fifth among the 14 fund companies that are part of the "old ten" fund companies and the top ten fund companies in terms of size in the first quarter of 2024.

Calculated based on the total profits realized and the total management fees collected by their funds from 2014 to 2023, except for China Asset Management, the other 13 of the 14 fund companies that are the "old ten" fund companies and the top 10 fund companies in terms of size in the first quarter of 2024, the ratio of total profit to total management fees of all their funds is higher than 2, while China Asset Management's is lower than 1, at 0.95, ranking 14th.

In other words, from 2014 to 2023, the management fees collected by funds under China Asset Management Co., Ltd. exceeded 30 billion yuan, while the total profit in the same period ranked low among the "old ten" fund companies.

4. In 2023, nearly 40% of the products under Fuguo Fund had negative returns, and the proportion was higher than the average of the other "old ten"

It is worth noting that in 2022, 2023 and from January 1 to June 19, 2024, the proportion of funds under China Asset Management that reported negative returns was higher than the average of the “old ten” fund companies.

According to data available from Oriental Wealth Choice as of June 19, 2024, in 2022, 2023, and from January 1 to June 19, 2024, the number of funds under China Asset Management Co., Ltd. with negative returns accounted for 62.82%, 59.08% and 38.04% of all its funds respectively; during the above periods, in addition to China Asset Management Co., Ltd., the number of funds under the other nine "old ten" fund companies with negative returns accounted for 59.91%, 55.37% and 37.12% of all its funds respectively.

It has been calculated that in the three periods from January 1 to June 19, 2022, 2023, and 2024, the proportion of funds under China Asset Management with negative returns to all its funds was 2.91 percentage points, 3.71 percentage points, and 0.92 percentage points higher than the average values ​​of the other nine "old ten" fund companies, respectively.

In short, during the three periods from January 1 to June 19, 2022, 2023, and 2024, the proportion of all funds under China Asset Management that suffered negative returns in each period was higher than the average of the other nine "old ten" fund companies.

5. 11 of its products have won the Golden Bull Award in the past five years, and many of them underperformed the benchmark in the year they won the award.

Overall, the proportion of funds with negative returns under China Asset Management is higher than the average of the other "old ten" fund companies. On the other hand, the return rate of its products that have won the Golden Bull Award may be worthy of attention.

According to the list of winners of the 15th to 19th China Fund Industry Golden Bull Awards published by China Securities Journal, China Asset Management won the 15th, 17th, 18th and 19th "Golden Bull Fund Management Company" awards and the 17th "Quantitative Investment Golden Bull Fund Company" award. In the 15th to 19th China Fund Industry Golden Bull Awards, China Asset Management had 2, 3, 0, 3 and 5 products winning awards respectively.

It should be pointed out that some of the products under China Asset Management Co., Ltd. that won the 15th to 19th China Fund Industry Golden Bull Awards underperformed the benchmark in terms of returns in the year of winning the awards.

In the 15th "Golden Bull Award" in 2018, the Fuguo Low Carbon Environmental Protection Hybrid Fund under Fuguo Fund Management won the "Three-Year Open-Ended Hybrid Continuously Winning Golden Bull Fund" award. According to the data from Oriental Fortune Choice, the Fuguo Low Carbon Environmental Protection Hybrid Fund achieved a return rate of 33.2% in 2017, outperforming the benchmark of 16.36% in the same period; in 2018, when it won the award, the Fuguo Low Carbon Environmental Protection Hybrid Fund achieved a return rate of only -32%, which was lower than the benchmark of -19.78% in the same period.

Similar situations will continue in 2021-2022.

In the 19th "Golden Bull Award" selection in 2022, China Asset Management's China Asset Management New Energy Flexible Allocation Mixed, China Asset Management High-end Manufacturing Industry Stock, China Asset Management Beautiful China Mixed, China Asset Management Value Advantage Mixed and China Asset Management CSI 1000 Index Enhanced (LOF) won the "Five-Year Open-Ended Mixed Type Continuously Winning Golden Bull Fund", "Three-Year Open-Ended Stock Type Continuously Winning Golden Bull Bonus", "Five-Year Open-Ended Mixed Type Continuously Winning Golden Bull Fund", "Three-Year Open-Ended Mixed Type Continuously Winning Golden Bull Fund", and "Three-Year Open-Ended Index Type Continuously Winning Golden Bull Fund" respectively.

According to Oriental Wealth Choice data, the returns achieved by Fuguo New Energy Flexible Allocation Mixed A, Fuguo High-end Manufacturing Industry Stock A/B, Fuguo Beautiful China Mixed A, Fuguo Value Advantage Mixed, and Fuguo CSI 1000 Index Enhanced (LOF) A in 2021 were 6.96%, 15.15%, 13.83%, 27.23%, and 27.33%, respectively, all outperforming the benchmarks in the same period in 2021.

In 2022, the five funds, namely, China Asset Management New Energy Flexible Allocation Mixed A, China Asset Management High-end Manufacturing Industry Stock A/B, China Asset Management Beautiful China Mixed A, China Asset Management Value Advantage Mixed, and China Asset Management CSI 1000 Index Enhanced (LOF) A, achieved returns of -13.97%, -29.13%, -23.31%, -19.01%, and -14.4%, respectively; in 2022, the performance benchmarks of these five funds increased by 4.65%, -17.11%, -13.01%, -14.88%, and -20.49%, respectively, during the same period.

It has been calculated that in 2022, compared with the benchmark, the excess returns of the five funds, namely, Fuguo New Power Flexible Allocation Mixed A, Fuguo High-end Manufacturing Industry Stock A/B, Fuguo Beautiful China Mixed A, Fuguo Value Advantage Mixed, and Fuguo CSI 1000 Index Enhanced (LOF) A, were -18.62%, -12.02%, -10.3%, -4.13%, and 6.09%, respectively.

That is to say, among the five products under China Asset Management that won the 19th Golden Bull Award in 2022, four achieved returns that underperformed the benchmark in 2022.

6. The total losses of 11 "Golden Bull Funds" in the past two years exceeded 10 billion yuan, and 10 of them had negative returns in 2023

If we focus on 2022-2023, most of the products under China Asset Management that won the 15th to 19th China Fund Industry Golden Bull Awards were "loss-making funds."

According to the data from Oriental Fortune Choice, it is estimated that among the 11 funds under Fuguo Fund that won the 15th to 19th China Fund Industry Golden Bull Awards, 10 and 10 suffered losses in 2022 and 2023 respectively. The total profits of the 11 funds in 2022 and 2023 were approximately -9.865 billion yuan and -2.919 billion yuan respectively, totaling approximately -12.783 billion yuan; the total management fees collected in 2022 and 2023 were approximately 484 million yuan and 343 million yuan respectively, totaling approximately 827 million yuan.

It can be seen that the 11 "Taurus Funds" suffered a total loss of more than 10 billion yuan in 2022-2023.

It is worth noting that since 2023 and early 2024, some fund products under the China Asset Management Co., Ltd. that won the Golden Bull Award have not only lost money in terms of return rate, but also underperformed the benchmark.

According to Oriental Wealth Choice data, in 2023, among the 11 funds under China Asset Management that won the 15th to 19th Golden Bull Awards, 10 achieved negative returns in 2023. Among these 10 funds, 6 achieved returns in 2023 that were lower than the increase of their benchmarks during the same period.

Since the beginning of 2024, as of the query date June 21, 2024, among the 11 funds under China Asset Management that won the 15th to 19th China Fund Industry Golden Bull Awards, 6 funds have achieved negative returns since 2024, and 7 funds have achieved returns since 2024 that are lower than the increase in the benchmark during the same period.

From the beginning of 2024 to the query date of August 1, 2024, among the 11 "Golden Bull Award" funds, the seven funds, namely, China Asset Management Low-Carbon Environmental Protection Mixed Fund, China Asset Management Hongli Pure Bond Type Initiated Fund A, China Asset Management Low-Carbon New Economy Mixed Fund A, China Asset Management New Power Flexible Allocation Mixed Fund A, China Asset Management High-end Manufacturing Industry Stock A/B, China Asset Management Beautiful China Mixed Fund A, and China Asset Management Value Advantage Mixed Fund, had a yield rate of -6.74%, 2.84%, -19.26%, -10.39%, -10.81%, -12.06%, and -4.89%, respectively, underperforming the benchmark during the same period.

From the above, we can see that in 2022 and 2023, the 11 "Golden Bull Award Funds" under Fullgoal Funds suffered a total loss of more than 12 billion yuan. And in 2023, 6 of the 11 "Golden Bull Award Funds" under Fullgoal Funds underperformed their own performance benchmarks.

In summary, Chen Ge, the current general manager of Wells Fargo Fund, may have only managed one mixed fund before taking office as general manager, and the mixed fund's heavy holdings may have been "buying more as the price fell" in the first four quarters before Chen Ge left the position of fund manager. In 2022, many of Wells Fargo Fund's funds that had won the Golden Bull Award underperformed their own performance benchmarks. In 2023, nearly 40% of Wells Fargo Fund's products achieved negative returns, which was higher than the average of the other nine "old ten" fund companies; and many "Golden Bull Funds" had negative returns in 2023 and 2024. Under the above circumstances, the management ability of General Manager Chen Ge may be "questioned."

Disclaimer:

The reports written by this organization are based on information that we believe to be reliable or publicly available. We do not guarantee that the data, information, opinions or statements in the text will not change. In any case, the data, information, opinions or opinions expressed in the reports written by this organization are for information sharing and reference only and do not constitute investment advice to anyone. Under no circumstances will we be liable for any losses caused to anyone by the use of any data, information, opinions or content in the reports written by this organization. Readers bear the risks themselves. The reports written by this organization are mainly distributed in electronic form and are also distributed in printed form. The copyright belongs to Jinzhengyan. Without our consent, the report may not be quoted, abridged or modified in any way contrary to the original intention, and may not be used for profit or for other unauthorized purposes.