Author: Zhao Mingchao
Funds in the holding period lose more and earn less. The fundamental reason is that the timing of issuance is an important reason. It has become unbearable for investors that fund companies, especially large-scale fund companies, issue a large number of funds at a high level in the market.At the same time, some fund managers’ extreme betting operation mode also magnifies the fund’s losses in the market adjustment
There are only a few trading days left until the end of the year, and it is time to take stock of the past.
In the past few years, in order to prevent investors from chasing ups and downs, fund companies have issued many holding period products, hoping to guide investors to hold for a long time to obtain better returns. However, judging from the past performance of holding period funds, most funds have fallen into losses after their establishment. Among them, more than 120 funds have lost more than 20% since their establishment, and 8 funds have lost more than 40%.
For a long time, frequent trading by investors and chasing ups and downs have been considered to be an important reason why “funds make money, but basic people don’t make money”. Why did the holding period product originally used to solve this problem not achieve the expected effect?
According to analysis by industry insiders, fundamentally, the timing of issuance is an important factor. Fund companies, especially large-scale fund companies, have issued a large number of funds at a high level in the market, which has become an unbearable burden for investors. At the same time, some fund managers’ extreme betting operation mode also magnifies the loss of funds in the market adjustment.
Positive income accounted for less than 20%
According to incomplete statistics from Shanghai Securities News reporters, from December 2018 to the present, a total of 384 holding period products have been established in the market, of which 301 will be issued after 2021. Judging from the performance of the above funds, as of December 21, 2022, there are only 71 funds that have achieved positive returns since their establishment, accounting for less than 20%.
Correspondingly, there are as many as 224 funds that have lost more than 10% of the above-mentioned holding period products since their establishment, 129 funds have lost more than 20% since their establishment, and 36 funds have lost more than 30% since their establishment. 8 lost more than 40%.
On December 2, the high-quality growth selection fund of a large fund company in Shanghai expired with a 2-year holding period. Judging from its performance, during the two-year holding period, the net value of the fund fell by 46%, almost cut in half. For the fund, which had a scale of 6 billion yuan when it was established, it lost nearly 3 billion yuan in two years. It should be noted that the performance of many other holding period products managed by the fund manager is also quite dismal, with a loss of more than 40% since its establishment.
Earlier, on November 6, the 18-month holding period fund product of Sunshine Life under the asset management of a securities company expired, and the net value of the fund fell by 49.56% during the holding period.
The 6-month holding period fund of a high-quality enterprise under a fund company in South China has been in a state of loss for most of the time since its establishment in January last year. It only had a positive return within a month or so after its establishment, and its net value has continued to be at a low level since then. Below the “water mark”. As of December 21, the fund has lost 44.65% since its inception.
Judging from the net value trend of the above-mentioned fund products with relatively large losses, since 2022, the general losses have been relatively large. Among the 36 funds that have lost more than 30% since their establishment, only one will lose less than 20% in 2022, and as many as 21 will lose more than 30% in 2022. This also means that most of the losses of the above funds will be in 2022. year formed.
Three major causes of loss
According to the analysis of industry insiders, the above-mentioned funds with large losses mainly have the following characteristics: First, the market was at a relatively high level at the time of issuance, especially during the market excitement period in early 2021, and many fund companies are still rushing to issue holding period funds; Most of them belong to large fund companies. Relying on good brand and channel advantages, large fund companies are more capable of issuing holding period products; third, fund managers lack the ability to obtain alpha and lack awe of the market. When the market trend is down, they can only accept large losses the result of.
Most of the holding period funds with more losses are issued from the second half of 2020 to 2021. When the market conditions are good, fund companies’ issuance along with the trend has also become an important reason for investors’ losses. During the rapid development of funds in the past few years, fund companies have started a “god-making” movement. Some fund managers who have not experienced the test of the bull-bear cycle are dubbed “goddesses”, “gods” and “growth stock hunters” by fund companies. They use short-term high returns as a gimmick to attract a large number of investors to buy.
However, judging from the holding period funds that have still made more profits since their establishment, most of them were established before May 2020. For example, the Guotai Research Selected 2-year holding period fund established on December 24, 2019 has a total return of 75.35% since its establishment; the Anxin Value Driven 3-year holding period fund established on January 15, 2020, established Since then, the total return has been 55%; Dongfanghong Qidong 3-year holding period fund has a total return of 46.29% since its establishment.
At the same time, the extreme operations of some fund managers led to a decline in the net value of the fund that was higher than that of the market during the same period. Take the above-mentioned Sunshine Life 18-month hybrid fund as an example. Since its establishment on May 6 last year, as of December 21, the net value of the fund has dropped by 47.86%. At the low point of the net value at the end of March, the decline was even more than 52%. . It can be seen from the fund’s regular reports that extreme bets are the main reason for its losses. After the establishment of the fund, it first made heavy bets on leading Hong Kong stocks and track stocks. As of the end of the second quarter of last year, the top ten heavy holdings included Hong Kong stocks such as Meituan, Li Ning, and Anta Sports, as well as Cobos, Martian, Stone Technology, XGIMI Technology and other modern life electrical appliances, as well as Wuliangye, Luzhou Laojiao, BYD and other track stocks.
Judging from the stock price trend of the above-mentioned track stocks, most of them were at their high point in the middle of last year. In the third quarter of last year, the net value of the fund fell by more than 20% in just over a month. Since the third quarter of last year, the fund began to bet on leading pharmaceutical stocks. As of the end of last year, among the top 15 holdings of the fund, only the 13th largest holding, Midea Group, was not a pharmaceutical stock. From the first quarter of this year, the fund began to buy leading Hong Kong stocks such as Tencent and Meituan. As of the end of the third quarter of this year, five of its top 10 holdings were Hong Kong stocks. Since the fourth quarter of this year, the performance of Hong Kong stocks has been eye-catching, but judging from the performance of the fund’s net value, it has only risen by less than 10%.
Industry insiders believe that since the beginning of this year, the market has faced a relatively complex environment, which has further tested the investment capabilities of fund managers. In the upward stage of the market, most of the investment performance of fund managers sought after by some investors is beta income, which cannot fully reflect the investment ability of fund managers. If the fund manager does not have the ability to obtain alpha, the net value of the fund will inevitably fall into a state of loss when the overall market trend goes down.
Investors can’t afford it
The original intention of fund companies to issue holding period products is to reduce holders’ behavior of chasing ups and downs from the perspective of product design. For investors, buying holding period products can force them to hold in the medium and long term, diluting the impact of timing and short-term market fluctuations; for fund managers, it can make investment layout more calmly, allowing investors to gain Better investment income and investment experience.
However, from the perspective of actual operation, when investors hold a 2-year product and expire, they have to accept the result of a loss of more than 40%, which is a fact that is difficult for most people to accept.
To be honest, the holding period products issued before the end of 2020 have all had relatively considerable floating profits. However, with the market adjustment since this year, the net value of the fund has dropped sharply, and it will be in a state of loss when the holding expires. To some extent, the issuance of holding period products not only tests the investment ability of fund managers, but also puts forward higher requirements for fund companies to study and judge the overall market conditions in the future holding period.
Take the Huijian 2-year holding period fund of a medium-sized fund company in Shanghai as an example. The fund was established on September 17, 2020. At the beginning of 2021, the net value once exceeded 1.33 yuan. When holding to maturity, the net value of the fund is only 0.81 yuan, and investors hold to maturity loss of 18.84%.
Investors bought holding period funds, but suffered such a high proportion of losses. In the final analysis, it is mainly because some fund companies blindly issue fund products to lock in the scale out of their own interests, which hurts the interests of investors to some extent.
The fund investment interest chain involves fund companies, company shareholders, fund managers, sales channels and investors. Only by expanding the scale of asset management can the fund management fee increase, the fund company’s profit increase accordingly, the fund manager will also have more income, and the sales channel can also have more share, but all of this is based on the investor’s purchase. basically.
In the process of fund sales, due to the large differences in the understanding of investment between the buyer and the seller, the buyer often lacks sufficient awareness of the investment risk-benefit ratio. When there is a huge asymmetry of information, the buyer is often confused by the return expectation and ignores it. hidden risks. Especially when investors are frantically chasing short-term high returns and fund companies issue new products, there is a high probability that they will end up losing money in the end.
Judging from the current situation, investors have “disapproved” of holding period products. On December 10, Shangyin Fund issued an announcement stating that the issuance of Shangyinfenghe’s one-year holding period fund failed. Prior to this, the fund had issued announcements several times to extend the fundraising period, but the fundraising was still unsuccessful.
(Editor: Xu Nannan)
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