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Text/Liu Zhentao

The bank-affiliated public fund Industrial Bank Fund has launched a new product!

On August 12, an initiator fund named "Xingye Hongyuan Return Mixed" under Xingye Fund began to raise funds. The fund raising period is from August 12, 2024 to August 30, 2024, and Zou Hui is the fund manager.

According to the information, Zou Hui previously worked as an investment manager in the investment department of Zheshang Securities and as the chief strategy analyst in the investment department of Orient Securities. In March 2018, Zou Hui joined Industrial Bank Fund. In November 2020, he began to work as a public fund manager. He has been in this position for three years and currently manages three funds (calculated on a consolidated basis, not including those being issued), with a management scale of 1.016 billion yuan.

In terms of performance, among the three funds currently managed by Zou Hui, two of the funds have experienced significant declines in performance, and only the A shares of one fund have achieved positive returns.

Data shows that Zou Hui manages three funds, namely Industrial Bank Zhiyuan Mixed Fund, Industrial Bank Research Selected Mixed Fund, and Industrial Bank Energy Innovation Stock Fund. Among them, Zou Hui managed Industrial Bank Zhiyuan Mixed Fund for more than one year, with a return loss of more than 20% during his tenure; managed Industrial Bank Energy Innovation Stock Fund for more than two years, with a return loss of more than 37% during his tenure, with the highest loss reaching 38.41%; managed Industrial Bank Research Selected Mixed Fund A for more than three years, with a return of 7.81%.

Among them, Xingye Energy Innovation Stock was established on August 31, 2021, nearly three years ago, and was issued by Zou Hui as the fund manager. The fund raised 1.241 billion yuan when it was established.

With the decline in the fund's net value and the redemption of fund shares, the fund's asset size has also shrunk significantly. The fund's second quarter report shows that as of the end of June 30, 2024, the asset size of Industrial Energy Innovation Stock was 518 million yuan, a decrease of 723 million yuan from the size when the fund was established, a decrease of more than half.

Overall, Zou Hui chose to launch a new product again when the return losses of two funds she managed exceeded 20%. The product launched by Zou Hui as the fund manager this time, Industrial Bank Hongyuan Return Mixed Fund, was relatively easy to establish because of the establishment method. The product launched this time is an initiator fund.

According to relevant regulations, the launch product only needs the fund manager or the fund manager's shareholders to subscribe for shares of no less than 10 million yuan to be successfully issued. In other words, even if there are no external investors subscribing, as long as Industrial Bank Fund or its shareholders subscribe for 10 million yuan, the fund can be successfully issued.

However, the fundraising period of Industrial Bank Hongyuan Return Mixed Fund is 18 days, and the fund company still hopes to obtain subscriptions from external investors. How many external investors will subscribe to the fund by then? Time will tell!

Industrial Fund was established on April 17, 2013, 11 years ago, and is a bank-affiliated public fund company. Wind data shows that as of the end of June 30, 2024, the scale of public fund management of Industrial Fund was 316.493 billion yuan.

Although Xingye Fund has a management scale of more than 300 billion yuan, the company's product structure is relatively unbalanced, with weak stocks and strong bonds. The fund managed by fund manager Zou Hui is a microcosm of this imbalance.

In terms of performance, Wind data shows that as of the end of August 9, 2024, Industrial Bank Fund has 8 stock funds under its umbrella. Since their establishment, the net value of the stock funds has been declining, and 7 of them have had a cumulative decline of more than 10%.

In terms of hybrid products, Industrial Bank Fund has 26, and the net value performance of the funds is relatively better than that of stock products. However, there are still 10 funds whose net value has fallen since their establishment, and 8 funds have fallen by more than 20%.

In contrast, Industrial Bank Fund has 55 bond products under its bond fund umbrella, which is six times the number of stock products. In addition, only one fund has seen a decline in net value since its establishment, while all 54 products have positive returns.

In terms of scale, Wind data shows that as of the end of June 30, 2024, the scale of equity products (stock and hybrid) under Industrial Bank Fund was 13.218 billion yuan, accounting for 4.18% of the scale, less than 5%; the scale of fixed income products (bond and money) was 302.947 billion yuan, accounting for 95.72% of the scale.

From this point of view, whether in terms of performance or scale, Industrial Bank Fund has the problem of weak stocks and strong bonds, and unbalanced development.

In 2023, Ye Wenhuang, chairman of Industrial Bank Fund Management, said in an interview with the media, "The most urgent and prominent problem currently facing the company is the relative imbalance in the development of stocks and bonds. How to expand equity business, strengthen equity products, and increase the proportion of equity are the main problems that Industrial Bank Fund needs to solve urgently. Without fixed income business, it cannot survive, and without equity business, it cannot continue to develop."

In order to increase the proportion of equity products and improve the performance of equity funds, Industrial Fund has also made many efforts in recent years, including introducing veterans from outside. For example, in March 2021, Industrial Fund poached veteran Qian Ruinan from Galaxy Fund.

However, veteran Qian Runan, who has served as a fund manager at Industrial Bank for more than two years, seems to have some difficulty adapting to the local environment. The three products he managed during his tenure all had negative returns, and two of them had cumulative losses of more than 20%.

This year, the "New Nine Articles" issued by the regulatory authorities clearly pointed out that they will vigorously develop equity public funds and significantly increase the proportion of equity funds. From this point of view, whether from its own development or in response to the call of the regulatory authorities, Industrial Fund needs to work harder on equity, especially stock products.

What do you think about Xingye Fund's fund manager Zou Hui's launch of new products and the company's problem of weak stocks and strong bonds?