As the Deputy Director of the Fixed Income Department of Industrial Securities Global Fund, Zhai Xiuhua has managed nearly 200 billion yuan of fixed income assets, covering currencies and bonds, and served as the fund manager of the "Fixed Income +" strategic fund Xingquan Huixiang Fund (now co-managed with Ye Feng). 11 years of investment and research experience through the bulls and bears, steady and steady, and gradually expand the circle. Recently, we invited fund manager Zhai Xiuhua to share her investment methodology, market views and team insights with you.
Zhai Xiuhua
Deputy Director of Fixed Income Department of Industrial Securities Global Fund, Manager of Xingquan Huixiang One-Year Holding Hybrid Fund, Xingquan Tianlibao Monetary Fund, Xingquan Stable Yidingding Open Bond Initiation Fund, Xingquan Xiangtai Fixed Opening Bond Initiation Fund, and Industrial Securities Global Hengli One-Year Fixed Bond Initiation Fund Fund.
● Graduated from Shanghai Jiao Tong University
● 11 years of investment and research experience
● The scale of management/co-management fixed income products is nearly 200 billion yuan
● Respect common sense in bond investment, attach importance to risk control, be good at reverse thinking, pay attention to the nature of the business and the nature of the bond itself
● Awards: Xingquan Wenyi Dingkai Bond won the 2021 Ji'an Jinxin "Qunyinghui" Five-Star Fund Star Award, and Xingquan Xiangtai Regular Open Bond won the 2021 Ji'an Jinxin "Qunyinghui" Five-Star Fund Star Award
Award source: Ji'an Jinxin, in 2021, the then fund managers of Xingquan Wenyi and Xingquan Xiangtai were jointly managed by Zhai Xiuhua and Wang Jian. Zhai Xiuhua manages/co-manages fixed income products with a scale of nearly 200 billion yuan (as of the end of 2021, the fund regularly reports data), including Xingquan Huixiang holding a mixed fund of 2,283,376,135.18 yuan a year, co-managed with Ye Feng (2021/12/20 to date), Yu Miao (2020/7/8-2021/12/20), Xingquan Tim Li Bao Monetary Fund 172,794,974,162.22 yuan, and Deng Juan (2019/2019/20). 6/26-present) co-management; Xingquan Wenyi Dingkai Bond Initiation Fund OF RMB15,131,934,864.28, co-managed with Wang Jian (2018/8/10 to date); Xingquan Xiangtai Dingkai Bond Initiation Fund of RMB4,019,130,049.41, co-managed with Wang Jian (2018/8/10 to date); and CISI Global Hengli One-Year Fixed Bond Initiation Fund, RMB4,233,048,929.74, managed separately. Historical performance does not represent future performance, the fund is not capital protected, investment needs to be cautious.
Representative Products:
Data source of the maximum drawdown during his tenure: Galaxy Securities, 2020/7/8-2021/12/31. Source of fund performance data in the table: Cietsey Global Fund Fund Periodic Report, as of 2021/12/31. Benchmark for the performance of the hybrid fund held by Xingquan Huixiang for one year: China Bond Composite (Full Price) Index Yield *85% + CSI 300 Index Yield *10% + Hang Seng Index Yield (converted using valuation exchange rate) *5%, Xingquan Huixiang has a one-year holding of Hybrid A since its inception The cumulative net value growth rate is 15.43%, the performance benchmark increases by 1.32% in the same period, and the annual performance and comparison benchmark since its establishment: 2020/7/8-2020/12/31 (5.30%/0.76%), 2021 (9.62%/0.56%); Xingquan Huixiang One-Year Holding Hybrid C has a cumulative net value growth rate of 15.09% since its inception, and the performance benchmark has increased by 1.32% in the same period, and the annual performance and comparison benchmark since its inception: 2020/7/8-2020/12/31 (5.20%/0.76%), 2021 (9.40%, 0.56%). Change of Fund Manager: 2020/7/8 to 2021/12/20: Yu Miao; 2021/12/20to: Ye Feng; 2020/7/8 To date: Zhai Xiuhua. Source: Periodic Reports of the Fund, as of 31/12/2021. The risk rating of the Fund by the Fund manager is R3, the Fund is not capital protected, historical performance does not represent future performance, and the Fund should be cautious in investment.
Golden Sentence Capture:
Participating in fiery deals can be like rootless wood, swaying with the wind. Probably the most important thing I'm concerned about is the margin of safety. Being able to see clearly where the downwards are, how much risk is downwards, and where the upward sources of income are, this kind of investment is my personal favorite investment method.
Fixed income investing requires great diligence. The investment style of the fixed income team is more inclined to pursue absolute returns, the biggest feature is that the management is particularly fine, and each fund manager pays attention to his own products like raising a baby. When it comes to investment transactions, we put a lot of emphasis on putting the interests of our holders first.
Regarding returns and volatility, in most cases, fish and bear paws are difficult to get both, may occasionally be lucky to have both, I hope that investors should be a little more rational when choosing products, the expected fluctuations and expected returns of the selected products are acceptable to themselves.
As a caring ambassador, I feel that the establishment of the value investment course by CISI Global Fund in Fudan School of Management is to plant a seed in the hearts of students, which may take root and sprout in the future. Sometimes public welfare is not simply how much money to take out, the key is how much time and energy is willing to spend, I think this is very important.
From 0 to 1, to infinity: the road to continuous advancement
The Impact of Professional Background on Investment Style: Focus on the Margin of Safety
Zhai Xiuhua: The natural emphasis on basic knowledge and logic in science and engineering makes me pay more attention to fundamentals on the one hand, and on the other hand, it also makes me give relatively small decision-making weight to things that I am not sure about, and pay more attention to those more practical aspects.
Probably the most important thing I'm concerned about is the margin of safety. Since the establishment of Huixiang Fund for more than a year, I have also tried to participate in some of the hottest trading in the market, but I found that some things went in like rootless woods, just swinging on it, not a way to invest in my favorite way. I prefer to be able to see clearly where the downwards are, how much risk there is downwards, and where the upward sources of income are, which is probably my personal favorite investment method. This kind of research requirements for industries and individual stocks are a little deeper.
The "secret" of risk control: gentlemen do not stand under the dangerous wall
Zhai Xiuhua: Controlling drawdown requires choosing an investment style for the product in the configuration, if you are balanced strategy configuration, try to find a relatively good target in various industries. Each industry may suffer losses in the market of the stage track, but in the long run, there may still be opportunities as a whole.
"We may never know where we're going in the future, but we'd better figure out where we're going to be now."
- "The Most Important Thing to Invest"
I may not know if a "lively plate" will rise in the future, but I will judge that it may already be overrated, that a gentleman does not stand under the wall of danger, that it is not in my margin of safety, and that I will stay away. Including interest rates, the history is also good, probably can know whether the interest rate is high or low, then you should know whether to buy or sell, in fact, this essence is still to say do not bet on that short-term thing, or to put yourself in a relatively safe place to stand, unsafe places away from a little farther.
Large-scale asset allocation concept and investment framework: lengthen the cycle and lay out cost-effective targets
Zhai Xiuhua: My operating philosophy in terms of large-scale assets has always been relatively stable, because these two types of assets, whether it is bonds or equity, in essence, if there is no particularly large indication of bias towards a certain type of asset in terms of cost performance. Looking at the elongation cycle, each of them is at what yield and volatility level, and then choose the corresponding large-scale asset allocation.
Relatively speaking, the cycle of bonds is relatively easy to judge, because the cyclical nature of fundamentals and financial data is very strong, and the correlation in large classes of assets is strong, which is the movement of the plate. The core strategy of bonds is duration, and my own investment framework is more like to do long-term trend investment, and overall it is still very cost-effective.
Standing at the moment, since the beginning of the year, if you go to lengthen the cycle, the interest rate is actually in a relatively bad position, at the peak of bond yields. Instead, part of the stock asset is at the apex, while the other part may already be in a valuation state where its fundamentals are relatively matched.
The main source of excess income: fixed income and equity combination
Zhai Xiuhua: The main strategies for fixed income investment are duration, which is equivalent to the position of the stock; the second is leverage; and the third is the income brought by the selection of bonds. I personally think that the long-term excess return is often derived from this long-term trend judgment, and the judgment of the economic prospect is mapped to the duration of bond investment, but when the short-term looks like bonds are not good, it is not bad if you can seize some cyclical bond opportunities. In the equity part, I am always expanding my circle of ability.
"Fixed Income +" Investment Strategy
The positioning of Xingquan Huixiang Fund: small steps and slow walking
Zhai Xiuhua: Huixiang is currently a dual fund manager system, I am responsible for fixed income, Ye Feng is responsible for equity, we will communicate operations and investment views, and finally strive to make α in their respective fields, which may be the most important.
In our opinion, investors who choose Huixiang may be investors who want to strive for a relatively less up-and-down investment experience.
"Fixed Income Plus" fund prospects in the wealth management market: performance in the expectation of sustainable growth
Zhai Xiuhua: "Fixed income +" fund in the market scale continues to increase is a good thing, if each of our products has its own clear positioning, positioning themselves in the risk-return characteristics, there is probably a clear expectation, this kind of net worth in the context of large, in fact, this is a huge market. Whoever can deliver sustainable growth in the future may have a larger market.
Investors are also maturing. The main force of family asset allocation assets, before it was after 70, then after 80, now after 90, soon after 00, I think every generation is constantly being educated, and now there are many communication channels, the fund reaches more and more people, I personally think they will become more and more rational, and large-scale asset allocation may become more and more popular.
The investment research style of the fixed income team of the Industrial Securities Global Fund: raising a baby is fine
Zhai Xiuhua: In recent years, our fixed income team has made great progress, the trading team is independent, the fixed income department includes investment and research, and everyone focuses on their own field more and more deeply. The investment style is more inclined to pursue absolute returns. The biggest style of the industrial securities global fund fixed income team is particularly fine management, each fund manager on their own account, the energy and confidence to pay like a baby, raising a special fine, this style is still quite obvious. So in the long run, the managed funds have performed well in the market so far. Our entire research team pays more attention to fundamentals and markets, focusing on bottom-up research, and each industry digs deep into its own framework. After several years of training, the team will become more and more mature.
In terms of trading, everyone will reflect the refined style to the transaction, and put the interests of the holder first - that is, every transaction I make, I hope to be beneficial to the holder, and everyone is adhering to such an idea to do this. After all, the bond base runs down for a year, and the yield gap between the top 1/2 and 1/3 may be very small, but the long-term accumulation is also more objective. Debt-based investing requires great diligence.
One-sentence advice to investors: Rational choice
Zhai Xiuhua: In most cases, volatility and income are like fish and bear paws are difficult to get at the same time, may occasionally have good luck can have both, I hope that when you choose a product, you should still be a little more rational, relatively speaking, to choose the expected fluctuations and expected returns that you can accept.
Recommend a classic book on the allocation of large assets, "Smart Investors", which begins by mentioning that if you are not a professional investor, you can consider how to allocate bonds and stock ratios.
Investors are advised not to invest less than 25% or more than 75% in the stock market, and when the market falls, the proportion of investment may be closer to 75%, and when the market rises, it may be closer to 25%.
—Benjamin Graham
(Opinions are personal, do not represent the position of the company, are for reference only, and are not intended as investment strategies or investment advice)
Market view
How to understand the recent market retracement: short-term multi-factor superposition
Zhai Xiuhua: Recently, since the Fed began to raise interest rates, US treasuries have begun to pull back sharply, and central banks in other developed countries have raised benchmark interest rates to combat inflation. The total amount of negative interest-rate bonds worldwide is roughly retracing to the level of 6 years ago. A wave of high valuations pushed up by interest rates, especially technology and growth, are facing great pressure to adjust valuations. The cautious superposition of the risk of the domestic real estate chain and the contraction of peripheral liquidity have led to a systematic contraction in the market's risk appetite, and the overall drawdown of the fund is indeed large in the short term.
Under the influence of the epidemic, the expectation of the future market
Zhai Xiuhua: In the first half of this year, the repeated impact of the epidemic on consumption and services, real estate chain risks do not seem to be over, and the year-on-year pressure is relatively large. Since the beginning of spring this year, the tone of macro policies has been steady growth. With the introduction of macro policies and the marginal relaxation of real estate, I think there may still be investment opportunities in the market in the future.
Beyond investment: Philanthropy is like a seed buried in each other's hearts
"Fudan Management Institute-Industrial Securities Global Fund Value Investment Course" Caring Ambassador
Zhai Xiuhua: The public welfare project of the value investment course is the contribution of all the staff of our company and the participation of all the core management personnel, and the energy investment is unprecedented. The preparation lasted for a year, two rounds of trial lectures, and finally the executives and fund managers changed the PPT about three times before they really went to Fudan to teach this class, the purpose is to let the students understand that they want to combine this theory with the practice of A shares to make it solid.
After listening to these courses, students do not know whether they have some experience at the moment, but if they go to investment-related work in the future, I think these knowledge frameworks should often come to mind, and when he goes to research, he will understand where the focus should be to study an industry or a company. At this point, I feel that this course is to plant a seed in the hearts of students, which may take root and sprout in the future.
Through this course, I deeply realized that the so-called public welfare not only needs financial support, but also needs a heart that seriously does a good job in public welfare, and it takes time and energy. In fact, I envy my classmates, so young can have such a senior industry senior to personally invest in the experience of preaching and teaching, should be less than me to take a lot of detours.
For many years, together with the Industrial Securities Global Fund, we have landed goodwill
Zhai Xiuhua: In addition to the value investment program, the scholarship public welfare project of the School of Pharmacy of Shanghai Jiao Tong University was first projected by me as a love ambassador. Our company should be the first non-pharmaceutical industry to provide scholarships to the School of Pharmacy, and every year students who receive scholarships will carefully handwrite letters and compile them into a book to express their gratitude to us.
In 2016, benefiting from the matching donation mechanism of the Industrial Securities Global Fund, I personally donated one by myself, and the company matched a donation, which provided scholarships for students, and later the company and Ningquan Assets have successively added other projects such as young scholars funding until now. I am particularly grateful for this, if the company does not have such a matching donation mechanism, as an individual, it is difficult for me to have enough strength to do such a public welfare project, but with the help of the company, many well-meaning ideas can become a reality and sprout.
Through the "Cietseci Global "Science +"" column, the CIS Global Fund Subscription Account brings you the latest market views of CIS Global Fund Managers, and presents their most core investment strategies and investment styles one by one
Risk Warning: The minimum holding period of each Fund share of the Fund is 1 year. For each Fund Share, the minimum holding period is the next working day (i.e. the minimum holding period maturity date) from the effective date of the fund contract (for the subscription shares, the same below) or the confirmation date of the subscription of the fund shares (the same as the minimum holding period) to the effective date of the fund contract or the application date of the fund share subscription for one year (1 year refers to 365 days, the same below). Only after the maturity date of each Fund Share of the Fund (inclusive) of its minimum holding period may the holder of the Fund Share apply for redemption of the Fund Share. Therefore, for fund share holders, there is a risk that they will not be redeemable within 1 year after investing in the fund. The Fund is a hybrid fund with a higher expected return and expected level of risk than that of bond funds and money market funds and lower than equity funds. The Fund Manager has a risk rating of R3 on the Fund. The Fund invests in Hong Kong stocks and is subject to special investment risks such as exchange rate risk and Hong Kong market risk. The Fund may choose to invest part of the Fund's assets in Hong Kong stocks or not invest the Fund's assets in Hong Kong stocks according to the needs of the investment strategy or changes in the market environment of different allocations, and the Fund does not necessarily invest in Hong Kong stocks. Fund manager investment research experience: Fund Manager Zhai Xiuhua: From September 2009 to March 2010, he worked at KPMG Huazhen Certified Public Accountants, from March 2010 to June 2014, he worked at Taixin Fund Management Co., Ltd. as assistant trading director; since July 2014, he has worked for Industrial Securities Global Fund, successively as a researcher and assistant fund manager, Xingquan Wentai Fund, Xingquan Tianyi Fund, Xingquan Xingtai Regular Open Fund Fund Manager. He is currently the fund manager of Xingquan Huixiang Fund, Xingquan Tianlibao Fund, Xingquan Wenyi Regular Open Fund, Xingquan Xiangtai Fund, and Industrial Securities Global Hengli One-Year Regular Open Fund. Fund Manager Ye Feng: Since July 2017, he has worked for the Industrial Securities Global Fund and has served as a researcher. He is currently the fund manager of Xingquan Huixiang Fund. Benchmark for the performance of the hybrid fund held by XingquanHui for one year: China Bond Composite (Full Price) Index Yield *85% + CSI 300 Index Yield * 10% + Hang Seng Index Yield (converted using valuation exchange rate) * 5%, Xingquan Huixiang has a one-year holding of Hybrid A since its inception the unit net value growth rate of 15.43%, performance benchmark growth rate of 1.32% in the same period, annual performance and comparison benchmark since its establishment: 2020/7/8-2020/12/31 (5.30%/0.76%), 2021 (9.62%/0.56%); Xingquan Huixiang one-year holding hybrid C since its inception of the unit net value growth rate of 15.09%, the performance benchmark increased by 1.32% in the same period, since its inception of the annual performance and comparison benchmark: 2020/7/8-2020/12/31 (5.20%/0.76%), 2021 (9.40%, 0.56%). Source: Periodic reports of the Fund, as of 31/12/2021. Change of Fund Manager: 2020/7/8 to 2021/12/20: Yu Miao; 2021/12/20to: Ye Feng; 2020/7/8 To date: Zhai Xiuhua. The Manager has a risk rating of R3 for the Fund and the Fund is not capital protected. Xingquan Xiangtai Regular Open Fund Performance Comparison Benchmark: Yield of China Securities All Bond Index, Unit Net Value Growth Rate of 25.80% since the Establishment of Xingquan Xiangtai Regular Open Fund, Performance Benchmark Growth rate of 22.64% in the same period, Annual Performance and Comparison Benchmark since Its Establishment: 2018/3/16-2018/12/31 (7.52%/7.33%), 2019 (5.80%/4.96%), 2020 (4.19%/3.05%), 2021 (6.13%/7.33%), 2021 (6.13%/7.33%), 2019 (5.80%/4.96%), 2020 (4.19%/3.05%), 2021 (6.13%/7.33%), 2021 (6.13%/7.33%), 2019 (5.80%/4.96%), 2020 (4.19%/3.05%), 2021 (6.13%/7.33%), 2021 (6.13%/7.96%), 2020 (6.13%/3.05%), 2021 (6.13%/7.33%), 2021 (6.13%/4.96%), 2020 (4.19%/3.05%), 2 5.65%); Fund Manager Change: 2018/3/16 to present: Zhai Xiuhua; 2018/8/10 To date: Wang Jian. Source: Circumstatic Global Fund Periodic Reports, as of 2021/12/31. Xingquan Wenyi Regular Open Fund Performance Comparison Benchmark: China Securities All Bond Index Yield, Xingquan Wenyi Regular Open Fund Performance Comparison Since Its Establishment Of the Unit Net Value Growth Rate of 43.60%, Performance Benchmark Growth rate of 30.38% in the same period, Annual Performance and Comparison Benchmark for the Past Five Years Since Its Establishment: 2017 (2.97%/-0.34%), 2018 (8.72%/8.85%), 2019 (5.34%/4.96%), 2020 (4.01%/3.05%), 2021 (6.50%/5.65%); Fund Manager Change: 2018/8/10 to present: Wang Jian; 2017/5/4 to present: Zhai Xiuhua; 2015/9/19-2017/5/4: Zhong Ming; 2015/9/10-2015/12/14: Mao Shuirong. Source: Periodic reports of the Fund, as of 31/12/2021. The results of the one-year fixed bond initiation of the industrial securities global Hengli are temporarily not listed for less than half a year after the establishment of the one-year fixed bond. Historical performance is not indicative of future performance. The Fund should be invested with caution and should be carefully chosen. Cixing Securities Global Fund promises to manage and use the fund property in good faith, diligence and responsibility, but does not guarantee that the fund will be profitable, nor does it guarantee the minimum return, investors should carefully read the relevant fund contracts, prospectuses and other documents when investing in the company's funds and select investment varieties suitable for their own risk tolerance. Mainland funds have been in operation for a short period of time and do not reflect all stages of stock market development. Past performance of a fund is not indicative of its future performance, nor does the performance of other funds managed by the fund manager or other funds managed by the fund manager constitute a guarantee of the performance of the fund. There is a risk of volatility in the fund's returns. The fund manager interview date is February 11, 2022, the views represent individuals only, do not represent the company's position, are for reference only, are not used as investment advice, and the views are time-sensitive and may change in the future. The fund investment needs to be cautious, please choose carefully.