Publication of long-term performance of public equity fund development

Original Title: Publication of Long-Term Performance of Public Equity Fund Development

Summary

[Liberación de rendimiento a largo plazo de los fondos de capital público para el desarrollo a gran escala]In 2020, the scale of newly issued public funds will exceed 3 trillion yuan, the total management scale will exceed 18 trillion yuan, and the share of equity funds will increase by 9%. Scale growth depends on good performance. As of the end of November 2020, the annualized rate of return for part-capital funds is 16.49%, the annualized rate of return for bond funds is 6.87%, and the annualized rate of return for the public FOF it is 9.38%. Various types of funds have performed well over the long term. As an important tool for inclusive investing, like family financial management, the concept of “investing in stocks is better than buying funds” is deeply ingrained in people’s hearts. (China Fund News)

Central economic workmeetingHeld in Beijing from December 16 to 18, the meeting proposed to “promote the healthy development of the capital market and improve the quality of listed companies” and “standardize the development of the third pillar of pensionsinsuranceAnd other requirements, as an important institutional investor in the capital market, based on fiduciary duty, wealth management, standardized operation, open and transparent public offerings.backgroundIn 2020, a brilliant response was delivered to the market and hundreds of millions of Christians.

In 2020, public offerNew backgroundThe scale exceeded RMB 3 trillion, the total management scale exceeded RMB 18 trillion, and the share of equity funds increased by 9%.

Scale growth depends on a strongPerformance. At the end of November 2020,Partial capital fundThe annualized rate of return is 16.49%,Bond fundsThe annualized rate of return is 6.87% and the public FOF annualized rate of return is 9.38%. Various types of funds have performed well over the long term.Financial managementAnd other important inclusive investment tools, the concept of “investing in stocks is better than buying funds” is deeply ingrained in people’s hearts.

At the end of the third quarter of 2020, public funds invested 4.16 trillion yuan in stocks and 8.56 trillion yuan in bonds, of which the value of Stock A amounted to 3.87 trillion yuan, which represents 6.75% of the total market value of the two cities.Public funds have become important institutional investors in the capital market, increasing the proportion of direct financing, serving the transformation of the capital market and helpingsupplyPlay an important role in aspects such as lateral structural reforms.

As an important link in serving the capital market and the real economy, while also providing investment tools for personal pensions, public funds will continue to display the majestic power of institutional investors in the future and will have a lot to do in the field. of inclusive finance.

　　Long-term thinking leads to long-term performance

　　Equity funds welcome the new year of development

In 2020, the professional investment capabilities of public funds will be highlighted.productThe structure continued to be optimized and the capital market buyer role was further enhanced. Equity funds open the way to the best development opportunities, and their position in the public funds industry has become increasingly prominent.

According to the data, at the end of October, there were 131 fund management companies in China, another 14 public fund managers and 7682 public fund managers across the market with a total net asset value of 18.31 trillion yuan, an increase 23.99% since the end of 2019. Among them, the share of equity funds increased by 9.11 percentage points, from 21.59% at the end of 2019 to 30.7%.

This year’s equity funds have developed rapidly. Many fund managers said that the great development of public funds, especially equity funds, is rooted in the stable functioning of the real economy and the continuous increase in the financial needs of residents, benefiting from a strong institutional environment and Capital market environment.

　　China Universal FundHe said that from the public offering fund management scale of 18.3 trillion, the capital fund scale has increased by more than 2.4 trillion compared to the end of 2019, which has become the largest development of the public offering funds this year.Main forcemilitary.

In this regard, the Universal Fund of China stated that, firstly, China’s real economy is the first to emerge from the adverse effects of the epidemic and the long-term economic trend continues to consolidate.industryThe strong drive for development and modernization has generated great confidence in the market; second, since the application of the new asset management regulations, the advantages of the public funds system have continued to be highlighted. There is a strong demand for reallocation of household wealth and capital assets have become the main direction of investment; Third, from a policy perspective, since the end of 2019, the China Securities Regulatory Commission has repeatedly emphasized the vigorous development of equity funds, expanding medium and long-term financing sources in multiple ways, and promoting the balanced development of investment and financing.

For example, as of October 2019, the classification registration mechanism was implemented for conventional public funds products and the registration efficiency was improved; In December 2019, several fund evaluation agencies responded to the call for supervision and issued joint proposals to optimize the fund evaluation system … the above policies AND measures have created a good institutional environment to vigorously develop the funds of capital.

In addition to market and policy reasons, public funds have consistently improved their investment performance and their professional investment capacity has been widely recognized.

Dongfanghong Asset Management stated that the lucrative effect for two consecutive years has caused investors to seek public funds and more funds are being actively invested in public funds.

Dongfanghong Asset Management presents, on the product side, asset managers through innovationproduct designHelp investors obtain relatively stable long-term returns, implement and guide long-term investment. Dongfanghong is the first manager to issue a long-term closed-end capital fund; On the service side, since August 2015, the company has launched the “Eastern Red Miles” customer service activity to promote investor guidance and companionship in a comprehensive and three-dimensional way. jobs.

　　China Europe FundHe said that as a fund practitioner, it is the responsibility and obligation to do everything possible to manage the funds entrusted by investors and return investors with good long-term returns. The value created by public funds for investors can be achieved throughDividendsHow to secure income for investors can also encourage investors to hold out for a long time through net worth growth.

A mid-size public offering in ShanghaiExecutivesHe said that as a proxy for inclusive finance, public offering funds have generated good returns for nearly 800 million individual and institutional investors. The concept of “buying stocks is better than buying funds” is deeply ingrained in people’s hearts. As the scale expanded, the public also recognized the investment capabilities of public funds, and the two formed ainteractive。

　　Stick to long-term thinking

　　Standardization and specialization of the investment research process

Many fund managers said that “long-term quality earnings experience” is an important condition for investors to maintain for a long time.

CEIBS said,fund companyYou need to strike a balance between the scale of fund management and investment experience. The investment of the fund should form a production line, highly subdivided and a highly specialized investment process: the researcher’s in-depth research on the industry and the continuous monitoring of key listed companies, as the starting point of the decision-making process of investment, the fund manager plays the role of “throughout the production chain” The role of “general assembly engineer” improves the overall production efficiency and investment return rate, and continues to improve the management level of capital funds.

In addition, public funds should further exploit the advantages of talents and platforms, adhere to sound and deep fundamental research, improve and upgrade the evaluation mechanism of long-term investment research system, create a research platform of more open and efficient investments and discover core technologies through teamwork. , Leading entities in the industry with good development prospectscompany。

As firm value investing professionals in the industry, most of the leading asset management institutions have chosen the fundamental research-based value investment route, seeking the benefits of long-term growth in the intrinsic value of the company.

For example, after many rounds of bull and bear market testing, some asset management companies have established systematic and inheritable systems.Investment theory of valueThe system deeply integrates “bottom-up” company research and “top-down” industry selection, and builds a set of general investment principles: First, focus on the industry track and explore the broad prospects and competitive landscape. Excellent industry; second, select high-quality companies, pay attention to the core competitiveness of listed companies, and share the long-term profit growth of high-quality companies through the long-term company; Third, attach importance to international benchmarking based on scientific research and valuation analysis. Compare the rating levels and trypriceI bought; fourth, keep it for a long time, try to avoid human weakness and avoid frequent transactions.

China Universal Fund said that since the beginning of this year, the fund industry has actively responded to regulators’ call to “vigorously develop equity funds,” insisted on promoting an active capital strategy, understood the huge demand of the product market capital and issued a series of funds recognized by clients. Products, the introduction of “fixed income +”, absolute income, hedge fund commodities and other fund products to meet the investment preferences of various clients.

(Source: China Fund News)

(Responsible editor: DF522)