China Fund News reporter Fang Li Cao Wenjing
The ups and downs of the A-share market in the first half of the year have come to an end, and the fund's half-way results in 2024 have also been released!
The data shows that the performance of the major mainstream indices in the first half of the year was different, with weak operation, falling more and rising less. The dividend index, CSI 300, SSE 50, CSI 100 and other indices rose, especially the dividend index rose by 11.29%, but the performance of the Science and Technology Innovation 50 and ChiNext Index was gloomy. Under the differentiation of index performance, less than 40% of equity funds achieved positive returns during the year, and funds that seized market opportunities achieved better returns, with the most bullish ones yielding more than 30%.
Active Equity Fund Annual Return -3.73%
In the first half of the year, the A-share market as a whole was volatile, with obvious structural conditions, large-cap blue-chip stocks performed better, and small- and medium-cap stocks generally fell.
From the Shanghai Composite Index, the market sentiment at the beginning of the year was more pessimistic, under the influence of economic expectations and liquidity problems, the market first saw a wave of decline, the Shanghai Composite Index once fell below 2700 points, the lowest to 2635.09 points, with the continuous introduction of stable growth policies and the entry of incremental funds, the market rebounded rapidly, the Shanghai Composite Index also returned to above 3000 points, the highest climbed to 3174.27 points. However, dragged down by multiple factors and lack of market confidence, the Shanghai Composite Index fell all the way down and finally fell below the 3,000-point mark. On the last trading day of the first half of the year, the Shanghai Composite Index closed at 2,967.4 points, down slightly by 0.25% for the year.
Judging from the performance of major indices in the first half of the year, in addition to the slight decline of the Shanghai Composite Index, the dividend index, the Shanghai 50, the CSI 100, and the CSI 300 rose by 11.29%, 2.95%, 1.44%, and 0.89% respectively, while the indices such as the Science and Technology Innovation 50 and the CSI 1000 fell, with some indices falling by more than 10%, and the Wind Micro Cap Index falling by more than 25%.
The overall performance in the first half of the year was outstanding in the dividend and resource sectors. From the perspective of Shenwan's primary industry, banking, coal, public utilities, non-ferrous metals and other sectors rose by more than 10%, while comprehensive, computer, trade and retail, social services, media, medicine and biology, real estate and other sectors fell by more than 20%.
Under such a volatile market, equity funds handed over the performance of the first half of the year. According to Wind statistics, if the new funds established in 2024 are not counted, the overall performance of equity funds in the first half of the year (including index, hybrid, and equity, excluding FOF, only counting the main code) is -4.17%, which is inferior to the Shanghai Composite Index and smaller than the drawdown of the ChiNext index.
Specifically, the 5,025 active equity funds included in the statistics achieved an overall return of -3.73% in the first half of the year.
Common equity funds and partial stock hybrid funds with minimum positions of 80% and 60% respectively can better reflect the equity investment ability of the overall public fund. The data shows that in the first half of the year, the returns of ordinary equity funds and partial stock hybrid funds were -5.37% and -5% respectively.
In the first half of the year, less than 40% of equity funds achieved positive returns during the year. From the perspective of the overall performance of equity funds, among the 6,734 funds included in the statistics, 2,574 had positive returns, accounting for 38.22%.
The most bullish fund has a return of more than 30% during the year
Some active equity funds seized market opportunities to achieve better returns. According to the data, as of June 28, a total of 303 active equity funds had a performance of more than 10% in the first half of the year, 30 had a performance of more than 20%, and the performance of the most bullish funds exceeded 30%.
Manulife Prosperity Pilot managed by Wang Peng has been holding 30.19% of the income for two years, becoming the champion of active equity funds in the first half of the year. The return rate of Manulife Prosperity Smart Selection, which is also managed by him, for 18 months, also exceeded 30%, reaching 30.06%, ranking second in the performance list. These two are the "only two" active equity funds with a return of more than 30% in the first half of the year. He also managed Manulife Emerging Prosperity Leader A, Manulife Growth, Manulife High R&D Innovation 6 Months A, and Manulife Transformation Opportunity A, with a return rate of more than 26% in the first half of the year, ranking at the top of the performance list.
Wang Pengneng will manage a number of funds among the top of the performance list, and his accurate layout in technology stocks and other related to the first quarterly report shows that the heavy position of Shanghai Electric Co., Ltd., Industrial Fortune Union, Xin Yisheng, etc., in the first half of the year rose by more than 60%.
In the quarterly report, Wang Peng said that the investment opportunities in the market in the first quarter and even the whole year lie in the following industries: 1. The computing power investment opportunities brought about by the vigorous development of the generative AI industry will continue, and the leading companies have entered the stage where their performance continues to exceed expectations, and the investment experience will improve; Investment opportunities for applications also need to be observed. Second, the industries that have benefited from import substitution in the "stuck neck" link have experienced a pullback, and investment opportunities have begun to appear again. 3. Investment opportunities for domestic industries with rigid needs in the high-quality development stage and medium and long-term industries. Fourth, the investment value of high dividends will continue during the downward phase of interest rates.
Immediately afterwards, Yongying Dividend Selection, managed by Xu Tuo, became the third active equity fund in the first half of the year with a yield of 29.98%. This fund adopts a dividend enhancement strategy, focusing on high-quality and high-dividend targets, pursuing stable returns, and the top 10 heavy stocks of the fund at the end of the first quarter are basically power stocks.
Talking about the market, Xu Tuo said that although pessimism is pervasive at present, he is full of expectations for the second half of the year, because some basic common sense determines that the investment value of Chinese assets is constantly improving. These common senses include, but are not limited to, the increasing possibility of a gradual bottoming out of domestic macroeconomic fundamentals, the gradual recovery of returns on existing assets under the requirements of high-quality development, the emphasis of China's capital market regulators on investors-oriented approach to increase the return on investment of small and medium-sized shareholders, the fact that the current valuation level of the stock market is significantly lower than the historical valuation and the liquidity of the financial market is relatively loose, and the relative valuation advantage of Chinese assets is more prominent.
In addition, Da Mo Digital Economy managed by Lei Zhiyong, Bosera Growth Select A managed by Wang Lingxiao, and Tibet Dongcai Digital Economy Transformation Preferred A managed by Luo Qing also performed well.
However, a large number of funds that did not grasp the market recorded large losses, which made the performance of active equity funds vary greatly. Wind data shows that the bottom performance in the first half of the year is a new fund established at the end of December last year, with a return of -38.58% this year, a difference of more than 68 percentage points from the performance champion. In addition, this year, the net value of funds fell by more than 20% to 260 funds, most of which were in the information industry, biomedicine and other fields, which were affected by market shocks and caused net value damage.
Gold, dividends and energy-related ETFs performed well
In the first half of this year, gold, dividends, energy and other sectors took turns to perform, thus driving the performance of a large number of index funds. From the perspective of the performance of specific index funds, thematic index funds such as gold, home appliances, central state-owned enterprises, energy, and resources became the biggest winners in the first six months.
From the perspective of the performance of specific index funds, the index funds tracking gold performed bravely, and the gold stock ETFs of China AMC and Yongying returned 28.12% and 20.26% respectively in the first half of this year. In addition, index funds tracking the concept of central state-owned enterprises also performed well, such as the Southern China State-owned Enterprises ETF, Ping An State-owned Enterprises Win-Win ETF, and Cathay Central Enterprises Win-Win ETF with returns of 24.28%, 24.05%, and 23.89% respectively in the first half of this year. In addition, the energy and resource-related ETF products of China Universal Wealth, Bosera, ICBC Credit Suisse and Harvest also ranked among the top in the first half of this year, all of which were above 20%.
3 funds have returned more than 90% in the past three years
Judging from the interim results of the three-year dimension, some active equity funds are still performing.
Wind data shows that as of June 28, 7 funds have returned more than 50% in the last three years, of which 3 have achieved a net value of more than 90%.
The best performance is Wanjia Macro Timing Multi-Strategy A and Wanjia Xinli managed by Huanghai, with yields of 96.83% and 94.76% respectively in the past three years, temporarily ranking first and second in the past three years. It was followed by Jin Yuan Shun An Yuanqi managed by Miao Weibin, with a return of 92.55% in the past three years.
In addition, Wanjia Select A, Huatai Berry Fuli A, Huatai Berry Multi Strategy A, and Golden Eagle Dividend Value A have also achieved more than 50% performance in the past three years.
The most bullish performance in the past five years has risen by more than 250%
Judging from the investment in the last five years, the best-performing fund has a return of more than 250%.
Judging from the situation in the past five years, the performance return of Jin Yuan Shun An Yuanqi managed by Miao Weibin reached 251.15%, ranking first among active equity funds. It was followed by the new trend of China Commercial Management managed by Zhou Haidong, with a performance return of 235.65% in the past five years.
In addition, Dacheng New Industry A, Soochow Mobile Internet A, Dacheng State-owned Enterprise Reform A, Soochow New Trend Value Line, Dacheng Ruijing A, Wanjia Zhenxuan, etc. also performed well, with performance returns of more than 200% in the past five years.
In this process, a number of high-performing fund managers such as Liu Yuanhai, Yang Jinjin, Yang Zongchang, Wei Gang, and Mo Haibo have also emerged.
Full of expectations for A-shares in the second half of the year
After the ups and downs of A-shares in the first half of the year, many fund managers are still looking forward to A-shares in the second half of the year. They believe that the valuation of the A-share index is at a relatively low level, and it has good investment attractiveness in the world's major markets, and the recovery market is expected to continue.
Yu Haiyan of the Index Investment Department of E Fund said that due to the internal and external environment, the A-share market has continued to fluctuate and adjust since late May. The follow-up policies and reforms at the economic level of the mainland are expected to continue to increase, waiting for the policy force to be transmitted to the fundamentals. Combined with the current situation, in the short-term may lack of obvious event catalyst environment, the A-share market volatility and low trading characteristics may continue for a period of time, but considering that the gradual implementation of the steady growth policy is expected to continue to improve, investors' expectations for economic growth and the earnings of listed companies, and the upcoming Third Plenary Session of the Central Committee of the Communist Party of China in July, the A-share market since February has twists and turns but is expected to continue, and there is no need to be pessimistic about the performance of the market outlook.
Standing at this point in time, Wanjia Fund also believes that it can begin to gradually become optimistic: first, the valuations of major A-share indices are at a relatively low level, whether from the perspective of global comparison or historical comparison, they are all at the bottom of the region, and the valuation quantile of the CSI 300 Index in the past 10 years and the past 5 years is below 30%; Second, the domestic real estate market is expected to gradually complete the clearance, the current real estate sales and new construction area has been below the equilibrium position, the future in the implementation of the new real estate policy, the whole chain of real estate is expected to gradually stabilize, and then drive the repair of domestic demand; Third, the external macro environment or marginal improvement, the inflation data in the United States is expected to fall below 3% in the second half of the year, and the probability of interest rate cuts in the fourth quarter is higher, while the euro area has taken the lead in cutting interest rates.
"From a valuation perspective, the current overall valuation of A-shares is not expensive, and it is still attractive from the perspective of value investment. From a fundamental point of view, it is expected that many sub-sectors are expected to show an accelerated boom in the second half of the year, such as the capital expenditure of a new generation of artificial intelligence, the capital expenditure of power grid equipment, the capital expenditure of the shipping industry and some overseas links. Based on this, it is expected that the A-share market is expected to continue its structural characteristics, and the direction of some economic acceleration and stable high-quality assets with low valuations are expected to usher in a revaluation. Huang Jichen, assistant general manager and fund manager of Bosera Fund Industry Research Department, said.
Cai Zhiwen, manager of CUAM Extended Growth Fund, also mentioned that the upward movement of the A-share market is expected to continue in the second half of the year. With the implementation of the steady growth policy and the opening of the replenishment cycle at home and abroad, the overall profitability of A-share listed companies is expected to recover steadily, especially the upstream resources, export chain enterprises, and supply-side clearing industries may also become structural bright spots.
Editor: Xiao Mo
Review: Muyu