Ruiyuan star funds investment logic of closing door to thank customers and scale first has limitations

category:Finance
 Ruiyuan star funds investment logic of closing door to thank customers and scale first has limitations


??? - star fund products closed door

In March last year, I subscribed to the Ruiyuan growth value fund with the mentality of trying. The final allocation proportion was only 7%, that is, 1400 yuan. Now it has risen to 2690 yuan. Unfortunately, I cant continue to subscribe.

According to the reporter of Securities Daily, the reason for Ruiyuan funds suspension of subscription and subscription business this time is to protect the interests of existing fund share holders, protect the smooth operation of the fund, and take the initiative to limit the scale.

The public offering products of Ruiyuan fund are not directly led by Chen Guangming. The Ruiyuan growth value hybrid fund is also jointly managed by Fu Pengbo, Zhu Zhen and Chen Yiyuan. The reporter of Securities Daily previously learned that on March 21, 2019, once the fund was issued, it caused a hot subscription in the market. Only one day after the fund was sold, it reached the upper limit of initial offering and was settled in advance. According to the final announcement, the total number of effective shareholders subscription of the fund reached 410000, with a total fund-raising amount of 5.87 billion yuan, of which the effective subscription confirmation proportion of class A shares was only 7%, which means that the subscription scale of the fund was as high as 71 billion yuan.

16 months after its establishment, the second quarter report of this year showed that as of June 30, 2020, the total shares of the fund were 10.585 billion, and the net asset value increased from 5.87 billion yuan at the beginning to 17.607 billion yuan, with the net value increasing by more than 90% since its establishment.

??? - five reasons for fund suspension

Securities Daily reporter learned after the interview that it is relatively common for public offering fund products to announce the suspension of large amount subscription. In order to protect the interests of fund share holders, ensure the benign growth of fund performance and scale, and ensure the stable operation of the fund, fund companies usually choose to reduce the amount of subscription, such as limiting the amount of subscription to less than 500000 yuan. In order to meet the needs of the majority of investors, fund companies adjust the daily subscription limit of a single fund account (including fixed investment, transfer in, etc.) to 10000 yuan or even 1000 yuan, or suspend the application of institutional customers to ensure the purchase demand of more investors.

It is not common for fund companies to announce that their fund products will completely suspend their subscription business, but it also happens from time to time. After sorting out the fund announcements in the past month, the reporter of Securities Daily found that 11 equity funds had announced the suspension of subscription business, including Harvest Fund, Penghua Fund, Yinhua Fund, Guangfa fund, UBS fund of SDIC, Societe Generale fund, TEDA Manulife fund, Soochow Fund, Jinxin fund, Jinyuan Shunan fund and Ruiyuan fund.

Why should fund products be suspended? Under what circumstances will subscription be suspended?

After interviewing a number of fund personages, the reporter of Securities Daily learned that there are generally five reasons for the suspension of fund subscription: first, during the transformation of fund products, in order to handle the share carry forward, the subscription was suspended to realize the smooth transformation of the fund. Second, funds operating in a regular open mode, that is, funds that operate in a closed period and between closed periods will be suspended from the next working day on the last day of the opening period until the next open period. The third is to suspend the subscription, redemption, transfer in, transfer out and fixed investment business in order to ensure the smooth operation of the fund during the conversion period. Fourth, the QDII foundation has suspended its subscription according to the arrangement of closing the market on holidays for the main overseas investment sites of the fund. These four kinds of suspension of purchase business are relatively short-lived, the shortest time is only one day. In the fifth case, the fund companies suspend the purchase of funds for a long time, that is, because the fund products have been widely concerned and actively applied by investors, limited by the companys scale limit at the present stage, and the judgment of the fund manager on the market investment situation, the fund company actively suspended the purchase of the fund to ensure the benign growth of the fund performance and scale.

An investment analyst of a Hong Kong listed company told the Securities Daily: the popularity of star fund managers by the market and individual investors is also due to their optimistic about their professional investment strategies and solid investment performance. Some fund products have grown rapidly due to investors enthusiastic subscription. In order to ensure that all investors can continue to enjoy good customer service and take into account the effective operation of fund assets, fund companies have to suspend the purchase of some fund products.

The scale of the fund cannot be expanded indefinitely

What is the logic behind fund companies initiative to limit the growth of fund scale?

A senior secondary market investor told the Securities Daily: if the investment style of fund managers is established, such as long-term value investors, the stock pool selected according to their own investment strategies will not change significantly in a short period of time. Therefore, under the background of the current established institutions holding shares of listed companies and the relevant size cap, the fund managers are good at managing the scale of funds can not be unlimited expansion. Thats why when he was young, he invested in stocks with low market value, but now he invests in big blue chips.

A mutual fund manager told the Securities Daily: after fully selecting the investment target, the scale of the fund is bound to be limited. It is more respectable to invest investors money in a good company recognized by themselves and obtain excess returns by holding them for a long time. This is more worthy of respect than blindly expanding the scale and appearing the practice of raising funds but not investing. This is a very professional approach.

Another fund manager of small and medium-sized public funds told Securities Daily: at present, some fund managers are good at managing funds with a scale of several billion yuan. Once the scale is too large, it is difficult to improve the performance, but it will have a negative impact on the benign operation with advantages. Therefore, the suspension of subscription is also a measure to ensure smooth operation and performance.

Equity funds are optimistic about opportunities in the third quarter

This time, Ruiyuan growth value hybrid funds suspension of subscription is also transmitting some heavy signals to the market?

According to the latest quarterly report, as of the end of the second quarter, the stock position of Ruiyuan growth value hybrid fund was 91.13%, and the top ten heavy positions were guoci materials, Longji shares, Xinwei communications, Lixun precision, Dongfang Yuhong, Wanhua chemical, kailitai, Renfu pharmaceutical, sannuo biology and mengwang group, accounting for 4.04% to 6.08% of the net asset value of the fund.

Ruiyuan growth value mixed fund analyzed in the second quarter report that due to the good results of epidemic control in China in the second quarter, the economy began to gradually enter the pace of returning to work and production. Most of the excellent enterprises also showed stronger business toughness under the background of returning to work and production under the impact of the epidemic. The fund continued the allocation strategy of the previous quarter on the overall position of the second quarter. At the same time, it also saw that the excellent enterprises held by the fund continued to consolidate the leading position in the industry after experiencing the rapid and unprecedented economic impact. I believe that the anti risk ability and coping capacity of these enterprises are also improving

Looking forward to the next quarter, Ruiyuan growth value hybrid fund said that under the current macro background, focusing on the actual growth ability and boundary of enterprises will be the focus of work in the future period. Meanwhile, it will pay close attention to the marginal changes of macro policies, maintain the sensitivity to holding enterprises, and strive to achieve the goal of stable operation of the portfolio.

It is expected that equity investment will still be the most attractive investment direction in China in the next few years. The emergence of more excellent enterprises with strong competitiveness makes it possible to capture more investment opportunities through in-depth research.

This years new equity funds have reached the trillion mark, affecting hundreds of millions of shareholders. Is it time for China Securities Regulatory Commission to support the public offering of all kinds of long-term funds, optimize product registration mechanism, market wide shocks, and increase partial equity funds? Source of this article: Ren Hui, editor in charge of Securities Daily_ NBJ9607