Home » China Europe Fund Huang Hua: Seize the essence of “fixed income +” and focus on disciplined investment_Oriental Fortune Network

China Europe Fund Huang Hua: Seize the essence of “fixed income +” and focus on disciplined investment_Oriental Fortune Network

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  Huang Hua, Master of Industrial Economics, Shanghai University of Finance and Economics, over 13 yearssecuritiesworking experience.Former portfolio manager of Ping An Asset Management Company, portfolio manager of Asset and Liability Department of Ping An Group Investment Management Center, Ping An PropertyinsuranceHead of the TAA team of the company’s asset management department. Joined in 2016China Europe Fundbegan to manage public offerings in 2017fundis currently the head of the multi-asset allocation strategy group of China Europe Fund.

In recent years, “fixed income +” investment has taken the upper hand, and many “fixed income +” funds have taken advantage of the wind. Compared with the wind, rain and noise of the outside world, the “Fixed Income+” team of China Europe Fund has always kept its original intention.Huang Hua is the backbone of the “Fixed Income+” team of China Europe Fund, when ChinasecuritiesWhen the reporter of the newspaper met him in Shanghai for the first time, he had a sense of sight that seemed to be an old friend. He made the reporter feel familiar with his witty conversation.

In the interview, Huang Hua has flexible thinking, clear speech and firm will, especially his in-depth understanding of “Fixed Income+”, a new public fund product, which is impressive. In order to truly “pay more attention to the investor’s holding experience”, Huang Hua designed the matching concept system process, not emphasizing ranking assessment, but paying more attention to the demand matching of the debt side, focusing on disciplined investment, and emphasizing scientificity.

The heart is like a rule, and the ambition is like a ruler. Huang Hua grasped the essence of “fixed income +”.

Do a good job in asset allocation

Before engaging in public fund investment, Huang Hua served as the portfolio manager of Ping An Asset Management Company, the portfolio manager of the Asset and Liability Department of the Investment Management Center of Ping An Group, and the portfolio manager of Ping An Asset Management Co., Ltd.insuranceThe head of the TAA team of the company’s asset management department has made great achievements in the field of major asset research, especially has rich experience in the bond market, and has excellent liquidity management and leveraged financing capabilities. He is currently the director of the multi-asset allocation strategy team of China Europe Fund, and is the leader of China Europe’s “fixed income +” team.

“Fixed Income+” funds take fixed-income assets as the main investment object, and choose to allocate stocks,convertible bondsand other flexible assets that seek to increase returns. For such products involving multi-asset and multi-strategy use, in Huang Hua’s view, the core is to do a good job in the allocation of large-scale assets. In his view, “fixed income +” products test the balanced allocation ability of fund managers, because “fixed income +” products are not a simple allocation of stocks and bonds, but to grasp the core of asset allocation in major categories. , to dynamically match between different assets, the test is the ability of fund managers to grasp the opportunities of different assets.

Unlike the common fund managers in the industry who advocate broadening the circle of competence, Huang Hua appears to be an alternative, and he pays special attention to specialists rather than general subjects. In his view, the allocation of large-scale assets is not as broad as possible, but should be controlled within the scope of one’s own circle of competence.

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Extensive observation and about taking, thick accumulation and thin hair. Once upon a time, when Huang Hua managed major assets in Ping An, he not only covered stocks and bonds, but also involved real estate, private equity funds (PE), non-standard assets, and overseas projects. Today, Huang Hua only needs to concentrate on making one product – the “fixed income +” product in the public offering fund. Huang Hua started from large and comprehensive multi-type asset investment, but now he is more and more specialized in the “fixed income +” road. In the interview, Huang Hua bluntly stated that the more diverse the goals are, the more difficult it is to achieve. “Blind diversification is also a risk. It is not a good thing if you can’t grasp your personal ability. What the ‘fixed income +’ field really needs in the future is specialists,” he said.

In the capital market, the various ideas of fund managers are ultimately reflected in the fund’s net worth chart. Therefore, some people concluded that the net worth curve is the best business card for fund managers.performanceAccording to the report, as of December 31, 2021, CEIBS Kangyu A, jointly managed by Huang Hua and Jiang Wenwen, had a return rate of 7.06% in the past year and a performance benchmark of 1.19%; the rate of return in the past three years was 29.78%, and the performance benchmark was 11.68%.

  Long-term stable debt-driven

Perhaps due to starting from insurance capital, Huang Hua pays great attention to the risk-return ratio and pursues lower drawdown and volatility under the same return. This experience not only cultivated his investment thinking, but also helped him build an investment philosophy that pursues long-term stable returns.

After 13 years in the market, Huang Hua has not forgotten his original intention of creating long-term wealth appreciation for the holders, and actively devotes himself to the cause he loves day after day. The original intention does not change, the belief does not change. How to create excess returns under the premise of controlling drawdowns and provide holders with a good holding experience with controllable fluctuations and expected medium and long-term returns is a proposition that he will never slack off on his investment journey.

So, how can “Fixed Income+” funds achieve stable returns on the basis of low volatility? Huang Hua expressed what he had learned in more than ten years of investment in one sentence: “Strive to achieve the target rate of return with smaller fluctuations.”

“The target rate of return is not the higher the better, but the better the match with investors.” This is Huang Hua’s core investment philosophy, which is implemented in every link of allocation, bond selection and stock selection. He does not pursue short-term rankings, but to meet the client’s long-term stable income as the primary goal.

“The product positioning of public funds is very important. ‘Fixed income +’ products are highly related to the debt side to some extent, that is, what kind of customers are buying these products. We will first calculate the risk budget of the product, Determining the final equity position by liabilities has little to do with whether you are optimistic about the market.” Huang Hua said.

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Out of his in-depth understanding of “fixed income +” products, Huang Hua sees four risks: first, stock risk; second, bond duration risk; third, credit risk; and fourth, liquidity risk. Huang Hua believes that how to choose between these four risks for “fixed income +” products is particularly important, and the key lies in how the products are positioned. Even when trade-offs are made in different economic environments, there is generally no overexposure to more than two risks at the same time.

  Professional discipline with strict discipline

Huang Hua introduced that the biggest feature of the CEIBS “Fixed Income+” team is that they specialize in the field of technology. The division of labor also makes full use of each person’s academic advantages, or is responsible for understanding equity stocks, or focusing on bond research. Adjust team allocation according to market conditions.

If a researcher is a soldier who “can fight when he is recruited, and can win in battle”, Huang Hua is like a general who forms an army, strategizing and formulating an overall strategy, allocating investment priorities to the researcher, and the researcher then invests different assets at the moment. The value is passed on to Huang Hua, and after tacit cooperation, it is finally implemented to strive for benefits for customers.

Huang Hua bluntly said that there are indeed all-round “fixed income +” fund managers in the market, but with the increase in the breadth and depth of the market and the increasing complexity of investment research, fund managers need to be more focused in the future, which will naturally show clear differentiation.

Huang Hua said: “As most of the funds are allocated to fixed-income assets, and a small amount of funds are allocated to stocks and other assets, CEIBS’ ‘fixed income +’ product is not a simple position-sharing model, that is, part of the money is given to fund managers who do bonds. The other part of the money is given to fund managers who do stocks, but to fully integrate and utilize the company’s resources, and consider the balance of various assets within the portfolio from the perspective of major asset allocation.”

In his view, the artistry behind excess returns is too strong, and stable “fixed income +” investors should pursue discipline and science, always bear moderate upside and downside risks in their portfolios, and pay attention to the valuation of various assets. Value pricing and allocation, as well as opportunities for segmented assets with high certainty.

Suspended balance and know level, set rules and know circle. Acting according to discipline is a point that Huang Hua emphasized very much and was repeatedly mentioned in the interview process.

“The whole team emphasizes discipline. Each fund manager may have his own ideas, but once the product positioning is done, it must strictly follow the specific strategy. How do you build this portfolio, the original decision is Whatever strategy you choose, you should strictly abide by this strategy. You can have your own judgments about the market, but you must not let this judgment dominate the entire portfolio management.” Huang Hua said.

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Scientific frameworks complement each other

CEIBS Fund is like a big tree, constantly growing and flourishing. Under the fruitful results, the huge and powerful root system is the investment and research team deeply rooted in fundamental analysis. This team is like the strong root system hidden underground, extending in all directions, reaching the frontier of the “fixed income +” territory in an all-round way. , gather into team strength, continuously output nutrients, and provide the most abundant nutrition for the fruit hanging on the branches – “fixed income +” fund.

In terms of team building, Huang Hua also has his own set of methodology. He believes that by changing the performance appraisal standards, it can help fund managers establish a long-term vision, and thus establish a long-term mechanism for talents to ensure “fixed income +” products. and the team can grow longer.

The credit rating system has a complete risk control mechanism before, during and after the event, strictly formulates the standards for exit and entry into the pool, and keeps track of bond positions to strictly control credit risks. Under the leadership of Huang Hua, the team has developed rapidly.

  Emphasize teamwork

In addition to clear product positioning and strict team discipline, there are many investment and research resources behind Huang Hua that are envied by his peers.

Huang Hua said that in addition to his own research and mining accumulation, the investment and research system of the China-Europe Fund has been continuously improved over the years, and he is also one of the beneficiaries. The company has continuously improved and improved the control of research quality and the interaction of the investment and research system. It is easier for researchers to discover more high-quality companies, and it is easier to form positive interactions with fund managers and convert them into fund managers’ investment portfolios. Even if fund managers independently mine companies, researchers will continue to track them and provide multi-dimensional data and information support.

As an outstanding researcherfund companyrelying on a strong investment and research platform, in terms of active equity investment, China Europe Fund has produced many talents in recent years, such as Liu Weiwei, Yuan Weide, Cheng Yuxuan, LuoYoshiakiThe performance of other Mesozoic fund managers is outstanding.

With the rapid development of the asset management industry, “individual talents” will eventually be limited by the rapid growth of management scale, and must develop towards a “golden team” that emphasizes teamwork. Therefore, China Europe Fund has not stopped the pace of change. The investment and research team continues to evolve itself, continuously optimize corporate governance, and seek competitive excess returns through efficient teamwork.

“In the current market environment, no matter how smart a person is, his insights are limited. The investment team needs to have both depth and breadth.” In Huang Hua’s view, depth means insight, breadth means mutual cooperation, and the two stimulate each other. During the process, China Europe Fund is gradually evolving into a “golden team” that emphasizes team division and teamwork.

(Article source: ChinasecuritiesReport · China Securities Network)

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