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Recently, the news that Liu Yanchun, a well-known fund manager of Invesco Great Wall Fund, suffered a huge loss of 43.7 billion yuan in three years, received a stable management fee of 3.6 billion yuan, and had a personal income of 130 million yuan has attracted attention and heated discussion online. On August 15, an insider of Invesco Great Wall Fund responded to the media, saying, "The news on the Internet is untrue and is purely a rumor. It is understood that the income data came from the self-calculation of a certain Internet celebrity."

Invesco Great Wall Fund refutes rumors that Liu Yanchun earned 130 million in three years and sold out his own funds

Nanduwan Finance reporter learned that a certain Internet finance blogger recently wrote an article saying: "In the past three years, the six fund products managed by Liu Yanchun have accumulated losses of 43.763 billion yuan, and the funds he manages have collected a total management fee of 3.653 billion yuan during this period. In terms of personal remuneration, Liu Yanchun's annual salary in 2021-2023 will be 58.71 million, 46.77 million and 32.31 million respectively, with a cumulative income of 138 million yuan in three years." In addition, the article also mentioned: "Invesco Great Wall Fund practitioners, senior management, heads of fund investment and research departments, and Liu Yanchun himself have redeemed a large number of fund shares they hold."

Regarding Liu Yanchun's salary and whether his holdings were cleared, an insider of Invesco Great Wall Fund responded to the media: "The salary was calculated by someone based on the management fee, which is a rumor! In addition, the article mentioned that the company's employees' holdings in his fund dropped to zero in the first quarter, which is also completely untrue. The holdings of employees, fund managers and executives are only disclosed in the semi-annual and annual reports."

Regarding the holdings of fund managers, the 2023 annual report shows that at the end of the period, the fund manager's employees held 1.2661 million shares of Invesco Great Wall Emerging Growth, accounting for 0.008618% of the total shares of the fund. Since the fund's 2024 semi-annual report has not yet been disclosed, it is impossible to determine the changes in holdings of fund managers such as Liu Yanchun.

Once a "100 billion fund manager", the scale of management has shrunk significantly in the past three years

Public information shows that Liu Yanchun was once a fund manager with a management scale of over 100 billion yuan. He joined Invesco Great Wall Fund in January 2015 and has been a fund manager of the equity investment department since April 2015. He has also served as general manager of the research department and assistant to the general manager of the company. He is currently the deputy general manager and fund manager of the equity investment department of Invesco Great Wall Fund. He currently manages six products including Invesco Great Wall Emerging Growth and Invesco Great Wall Dingyi.

As a star fund manager of Invesco Great Wall Fund, Liu Yanchun's management scale, performance and holdings have always attracted much attention. At the end of the first quarter of 2021, the scale of funds managed by Liu Yanchun exceeded 100 billion yuan, reaching 101.58 billion yuan, becoming another "100 billion public fund manager" after Zhang Kun of E Fund. At the end of the second quarter of the same year, his management scale reached a personal peak of 116.301 billion yuan, becoming one of the fund managers with the largest scale of equity funds in the Chinese market.

However, as liquor prices have fallen in the past three years, the size and performance of funds with heavy positions in liquor have also declined. Data shows that as of June 28 this year, the total size of the six products currently managed by Liu Yanchun has shrunk to 45.354 billion yuan, of which two 10 billion yuan funds, Invesco Great Wall Emerging Growth Hybrid A, have a size of 23.712 billion yuan and Invesco Great Wall Dingyi A, have a size of 10.716 billion yuan. Their performance has fallen by 41.66% and 41.32% respectively in the past three years.

Hold on to liquor stocks in the second quarter and look forward to more policies to boost domestic demand

Among the funds managed by Liu Yanchun, Invesco Great Wall Emerging Growth Hybrid is the fund with the longest management time and the largest scale, which can be regarded as his "masterpiece". The net asset size of the fund was 27.206 billion yuan at the end of the first quarter and 23.675 billion yuan at the end of the second quarter, a decrease of 12.98% from the previous period. According to iFinD data from Tonghuashun, in terms of short-term performance, the fund's performance return in the past three months was -19.59%, and the performance return in the past six months was -12.85%. In the long term, the performance return in the past year was -24.80%, and the performance return in the past three years was -42.45%. In terms of asset allocation in the second quarter, bonds accounted for 4.84% and stocks accounted for 93.39%.

Specifically looking at the second quarter holdings, the top ten holdings are Mindray Medical, Kweichow Moutai, Wuliangye, Gujing Gongjiu, Luzhou Laojiao, Haida Group, Shanxi Fenjiu, Midea Group, China Duty Free Group, and Chenguang Shares. Specifically, Liu Yanchun increased his holdings in Haida Group, Mindray Medical, and Midea Group, and significantly reduced his holdings in Luzhou Laojiao, Wuliangye, Gujing Gongjiu, China Duty Free Group, Kweichow Moutai, and Shanxi Fenjiu.

In the second quarter report, Liu Yanchun pointed out that my country is undergoing a structural transformation of its economy to cope with the current challenges of debt, economy and international relations. In order to achieve the country's long-term sustainable development, my country is actively seeking a production-led economic recovery, including independent and controllable industrial chains, encouraging the development of emerging industries, real estate deleveraging, local governments strictly observing fiscal discipline, and common prosperity. The problem of insufficient demand is prominent, and all industries as a whole show a price-for-volume feature. Low prices have led to a decline in corporate profitability, which in turn has been passed on to fiscal and resident incomes, and has also led to a long-term downturn in domestic risk assets.

He said that he expects reform to enhance vitality and more policies to boost domestic demand. At this stage, the excessively high real interest rate level is obviously not conducive to economic stabilization. We need to think of more ways to stabilize asset prices, repair residents' balance sheets, and increase residents' income. According to my country's current price situation, interest rate level, and fiscal situation, my country has sufficient motivation and ability to promote the expansion of total demand. In the short term, local government bonds are expected to be issued faster in the third quarter, and the marginal expansion of fiscal strength is expected to drive marginal economic recovery.

Written by: Luo Manyu, a reporter from Nandu Wancaishe