Looking back on 2017, the capital market is changing. BOC Fund actively grasped investment opportunities. After experiencing two market pullbacks and withdrawals in the second and fourth quarters, its various types of funds are still flourishing as a whole. With continued excellent performance, BOC Fund's non-monetary public asset management scale exceeds 230 billion yuan, ranking among the top five in the industry.
In 2017, the Shanghai Composite Index broke out of the M-shaped curve. The half-year upward trend since mid-May 2017 pulled back sharply after hitting the highest point in the year — 3450.5 points. As of December 29, 2017, the annual increase had narrowed to 6.56%. Faced with a volatile market similar to a “roller coaster,” BOC Fund's equity products have shown strong ability to withstand falls, and performance continues to be excellent. According to statistics, as of December 29, 2017, of BOC Fund equity and partial share hybrid funds, the annual net worth growth rate outperformed the general market increase; 12 had an increase of more than 10%, and the vast majority achieved positive returns. Among them, BOC China Securities 100 had an annual net worth growth rate of 34.15%, which was among the top 6% of similar products; BOC's strategic emerging industry and BOC's dynamic strategy increased by 27.49% and 27.05% respectively, both ranking in the top 30% of the industry; “BOC Internet +” and BOC consumer themes rose 22.73% and 22.67% respectively, ranking in the top 40% of the industry. Among flexible allocation funds, the net worth growth rate of BOC's preferred reweighted units reached 28.24% for the whole year, ranking among the top 6% of similar products; BOC Blue Chip Select and BOC Value Select both increased by more than 20%, ranking in the top 10% of the industry.
The sluggish bond market began in October 2016, and there was no significant improvement in 2017. The China Securities Full Bond Index fell slightly by 0.34% throughout the year. The unsatisfactory market situation is testing the professional ability of asset management institutions, and BOC Fund also handed over a satisfactory questionnaire on another of its traditional strengths, fixed income investments. Taking stock of the performance of BOC Fund's bond-type and debt-based hybrid products for the full year of 2017, nearly 90% achieved positive returns. According to the data, as of December 29, 2017, BOC Hengli's annual net worth growth rate reached 4.62%, and BOC steadily increased its profit by 4.57%, ranking in the top 1/4 of similar products; BOC Ruisheng and BOC's steady increase in capital insurance also ranked in the top 30% of the industry.
Year after year, the Bank of China Fund has become a “long-distance runner” among professional investment institutions. A number of its funds have experienced the ups and downs of the capital market over the years and have achieved excellent results that have surpassed bulls and bears. According to the data, as of December 29, 2017, many old funds under the Bank of China Fund that have been in existence for about ten years have all increased by more than 200% since their establishment. Among them, BOC China's return since its establishment has reached 706.2%, BOC has continued to grow, BOC earnings have reached 366.12% and 341.32%, respectively, and BOC's dynamic strategy has increased by 224.11%. Among funds that have been in existence for about five years, the return since the Bank of China theme strategy was established has reached 118.97%, and BOC bond conversion has enhanced A and B returns of 86.9% and 82.3%, respectively. According to data from Morningstar on December 25, 2017, there are only 28 ten-year five-star rated funds (including A and B/C shares) in the entire industry. BOC earnings and BOC China, a subsidiary of BOC Fund, ranked among them, while BOC received a Samsung rating for its continued growth. According to statistics, among BOC Fund's products, 5 have received three-year four-star ratings, 14 Samsung ratings (including A and B shares); 9 have received five-year Samsung ratings (including A and B shares); while BOC China Securities 100 and BOC Dynamic Strategy funds have both covered three-year and five-year four-star ratings.
With its outstanding investment and research capabilities and risk management standards, BOC Fund has been repeatedly favored by authoritative awards. So far, it has won nearly 70 awards in industry heavyweight awards such as the Golden Bull Award, Gold Fund Award, Star Fund Award, and Yinghua Award. In the 2017 “Awards Season”, BOC Fund won the “Gold Fund · Bond Investment Return Fund Management Company Award” for the second time, while BOC's steady increase in profits achieved the “Grand Slam” of the Golden Bull Award, Gold Fund Award, and Star Fund Award.
In addition to heavy awards, Bank of China fund holders have achieved long-term steady investment returns due to continued excellent performance. According to statistics, by the end of 2017, BOC Fund's dividends for the full year of 2017 exceeded 3.65 billion yuan, and the total cumulative dividends exceeded 20.8 billion yuan (all excluding dividends from currency products).
The wide recognition and trust of investors has made the scale of asset management of the Bank of China Fund rise year after year. By the end of 2017, BOC Fund's non-monetary public asset management scale had exceeded 230 billion yuan, ranking among the top five in the industry.
In 2018, China's fund industry celebrated its 20th birthday. Over the past 20 years, residents' wealth has grown steadily, and the capital market has developed healthily. As China's economic development enters a new normal in recent years, the steady, moderate and positive trend continues to be consolidated, and financial system reforms continue to be deepened, and China's fund industry will have more room for development in the future. As a Sino-foreign joint venture fund management company jointly built by Bank of China and BlackRock, the Bank of China Fund will continue to focus on improving investment management capabilities, giving full play to the company's investment and research advantages and shareholder advantages, actively building first-class asset management institutions, and using excellent performance to achieve long-term and continuous wealth addition for holders.