Abstract: a rare active management fund investing in A-shares in overseas markets can flexibly allocate stock-debt ratio, star products of established fund companies, star fund manager management, and outperform Shanghai and Shenzhen 300 most of the time.
Since 2019, the global economy has experienced increasingly weak growth and frequent signs of recession due to geographical conflicts, trade frictions and today's novel coronavirus. According to the World Economic Outlook report released by the International Monetary Fund on October 13, the global economy will contract by 4.4% in 2020, and China is the only country with positive growth in the world.
Source: international Monetary Fund
The proper control of the domestic epidemic, coupled with the orderly recovery of the real economy, is also good for the A-share market to a certain extent. After a sharp adjustment in the global market in the third quarter, the previous overvaluation was partially digested by economic repair, uncertainties such as the US election and Brexit have been gradually priced and digested by the market, and the market tends to pick up in the first half of the fourth quarter.
In addition, from the comparison of the rise and fall of the Shanghai Composite Index in the fourth quarter and other quarters over the years, the average annual increase of the Shanghai Composite Index from May to October and November to the following April from 2000 to 2019 is-1.5% and 11.3%, respectively. The average April increase of the Wande An index from May to October and November to the following year is-0.8% and 15% respectively. It can be seen that the stock market return in the half year from November to April is significantly better than that from May to October.
Picture Source: Haitong Research report
Of course, the above is also based on some historical data of the market law summary and prediction, the stock market investment risk and threshold for ordinary investors is still relatively high.
If you are optimistic about A-shares but do not want to take too much risk, want to take advantage of the wind market development and do not know how to choose stocks to enter the market, then a stock-debt mixed fund controlled by excellent managers is also a choice worth considering.
Both offensive and defensive, flexible allocation of A-shares and domestic bonds
Dacheng China flexible allocation Fund has a balanced style and is a stock-bond mixed public offering fund, which was established on March 3, 2014 and mainly invests in stocks, bonds and currencies in China. The allocation of the fund is very flexible, and managers can adjust the investment ratio according to the market conditions, and the investment proportion of A-shares or domestic bonds in China can reach 100%. This setting also puts forward very high requirements for fund managers.
The fund manager is Lin Zhenhui, a Master of Finance from the University of Hong Kong, with 12 years of experience in securities industry. He is currently the Director of Investment and Fund Manager of Dacheng International. He has worked in American Express Co Bank, China Merchants Capital and Fenghui Financial Group, responsible for asset management and research.
Managed by Mr. Lin Zhenhui$Dacheng flexible allocation in China (Hong Kong dollars) (HK0000524253.HK) $It has won many awards of the year, recognized by professional organizations, and has been awarded the highest rating of Morningstar in three years and five stars. The cumulative return of the Hong Kong dollar category An of the fund has reached 105.17% since the establishment of the fund on March 3, 2014, with a cumulative performance of 26.52% this year (data as of October 30, 2020).
Source: monthly report of the Fund, as of October 2020
The historical performance of Dacheng China flexible allocation Fund in this article all comes from the Hong Kong dollar share of Class A, which was issued on March 3, 2014.
Futu platform online fund accumulates Hong Kong dollar and US dollar shares for Dacheng China flexible allocation Fund Class P, which was issued on August 14, 2019.
According to Bloomberg data, over the past three years, the cumulative gain of 32.85% in Hong Kong dollar-denominated net value (red) has repeatedly outperformed the CSI 300 index. During the period, the trend is more stable than the CSI 300 index, the pullback is also smaller than the CSI 300 index, and the overall performance is better.
Source: Bloomberg, as of October 2020
Specifically, if we take a look at the latest position data of the fund, the current investment style of the fund is still dominated by the equity-debt balance of value, with stocks accounting for 69.09% of the total investment, of which 45.85% of the total investment is invested in the main board. the rest are invested in small and medium-sized board (10.70%), gem (10.22%), Science and Technology Innovation Board (2.32%) and so on.
The industry favors industries such as information technology and finance, and its investment is relatively scattered.
Source: monthly report of the Fund, as of October 30, 2020
In terms of net position value, the top five positions are 6.51% for Ping An Insurance, 2.98% for China Merchants Bank, 2.92% for Hengrui Pharmaceutical, 2.86% for Guizhou Moutai, 2.54% for Lixun Precision, and 27.22% for the top 10 positions. the rest of the positions are scattered and the overall style remains balanced.
Source: monthly report of the Fund, as of September 30, 2020
Overall, the fund's strategy is more flexible, the grasp of the domestic market is also relatively in place, can continue to outperform A-share mainstream index is enough to prove its investment ability, so when it is necessary to attack, it can be regarded as a good tool.
$Dacheng flexible allocation in China (Hong Kong dollars) (HK0000524253.HK) $
$Dacheng flexible allocation in China (USD) (HK0000524279.HK) $
Risk and disclaimer:
This document is not and should not be regarded as the basis for soliciting, soliciting, inviting, recommending the sale or sale of any investment products or investment decisions, nor should it be interpreted as professional advice. In any jurisdiction that prohibits the publication of the information contained in this document, the information contained in this document does not constitute a distribution, offer for purchase or offer to buy or sell any securities in that jurisdiction.
Those who browse this document should pay attention to and comply with any relevant restrictions. Those who read this document or before making any investment decision should fully understand the risks and the characteristics and consequences of the relevant laws, taxes and accounting, and decide whether the investment is in line with their financial position and investment objectives according to their own circumstances, and whether it can withstand the relevant risks, and should seek appropriate professional advice if necessary.
Investment involves risks. Investors should carefully read the fund prospectus, product information summary and relevant documents to understand the details of the fund (including its risk factors). Investors should pay special attention to the risks involved in investing in emerging markets. The fund may also involve fixed income securities risks, risks related to equity securities, risks related to the RQFII mechanism, investment concentration risks, China related risks, China tax risks, liquidity risks, RMB currency and exchange risks, risks related to stock market interconnection, risks related to Bank of China Ltd. bond market, investment risks, dividend risks, etc.
Investors are advised to note that the prices of fund products can rise or fall, and may change substantially within a short period of time. Investors may not be able to get back the amount they have invested in the fund. The past performance of the fund does not predict future performance. If there are similar forward-looking statements in this document, such contents or statements shall not be regarded as guarantees of any future performance, and it should be noted that the actual situation or development may differ materially from such statements.
This document shall not be deemed to have made an offer or invitation to any person in a jurisdiction where it is unlawful. Although the above third party data are derived from reliable sources, Dacheng International Asset Management Limited, its approved issuers or affiliates or any of its directors or employees are not responsible for any errors or omissions. The data and views in this document are for reference only and can be adjusted without notice, so they should not be relied on to make investment decisions. You should consult your investment adviser before you decide to invest.