As professional buyers, the holdings of public FOFs reflect the strategy choices of professional investors and can serve as investment references for investors. With the disclosure of the second quarter report, the holdings of public FOFs have also been made public.

According to the calculations of the Golden Finance team of Guosen Securities, at the end of the second quarter of 2024, the top three actively managed equity fund managers with the most FOF allocations were Liu Xu, Zhou Haidong, and Wang Bin; the top three 'fixed income+' fund managers with the most FOF allocations were Hu Jian, Wang Xiaochen, and Zhang Yifei.

Specifically for fund products, at the end of the second quarter, the fund with the largest FOF allocation scale among active equity funds was the Taipingyang Securities Great Wall Wealth Appreciation Fund managed by Liu Xu, and among bond funds, the fund with the largest FOF allocation scale was the China YinJian Pure Bond Fund managed by Huang Yingjie.

In addition, the number of FOF funds that directly invest in stocks is also increasing. In terms of specific stock targets, the top three FOF funds with heavy positions are Ningde Times, Himile Mechanical Science and Technology, and CMOC Group Limited. Regarding this, Zhang Xiaolong, general manager of the asset allocation department and fund manager of Hongli Fund, pointed out that from the current FOF's holdings and net asset value fluctuations, most of them still maintain a high position in stocks and equity funds, highlighting their confidence in the market.

Which fund managers do FOF funds look bullish on in the second quarter?

According to the calculations of the Golden Fund team of Guosen Securities, in the second quarter report of 2024, the fund manager with the most FOF allocations of active equity funds was Liu Xu of Taipingyang Securities, with 83 funds heavily weighted with FOF, with a scale of 0.752 billion yuan. Among them, the Taipingyang Securities Great Wall Wealth Appreciation Fund managed by Liu Xu was heavily held by FOF with 0.682 billion yuan, the Taipingyang Securities Great Wall Wealth Enterprise Fund was heavily held by FOF with 0.052 billion yuan, and the Taipingyang Securities Great Wall RuiXin Fund was heavily held by FOF with 0.018 billion yuan.

The second is Zhou Haidong of Huashang Fund, with 47 funds heavily weighted with his active equity funds; and the third is Wang Bin of Huaan Fund, with 39 heavily weighted FOF equity funds managed by him.

As for 'fixed income+' funds, in the second quarter report of 2024, the fund manager with the most FOF allocations of 'fixed income+' funds was Hu Jian of E Fund, with 64 funds heavily weighted with FOF, with a scale of 1.044 billion yuan. Among them, the E Fund Steady Income A managed by Hu Jian was heavily held by FOF with 0.515 billion yuan, the E Fund Age Prodigy A was heavily held by FOF with 0.376 billion yuan, the E Fund Yu Hui Return A was heavily held by FOF with 0.15 billion yuan, and the E Fund Hengsheng 3-month fixed opening was heavily held by FOF with 0.003 billion yuan.

In addition, second place is Wang Xiaochen of E Fund, with 57 heavily weighted FOF 'fixed income+' funds managed by him, with a scale of 0.851 billion yuan. Third place is Zhang Yifei of Anxin Fund, with 38 heavily weighted FOF 'fixed income+' funds managed by him, with a scale of 0.28 billion yuan.

In today's volatile market, will FOF funds have different preferences for fund managers?

Regarding this, Zhang Xiaolong, general manager of the asset allocation department and fund manager of Hongli Fund, pointed out that 'no matter which market, investment always chooses the direction that can bring higher investment returns, which may be stocks or funds. From the fund selection style of FOF in the past, excellent product performance is one aspect, and the other is a preference for two types of managers overall. The first type is fund managers with clear styles and good alpha capabilities under fixed styles; the second type is fund managers with relatively flexible holdings and able to adjust according to the market. The former mainly serves investors with clear industry and style preferences, and the latter mainly serves investors with medium- and long-term basic investment needs.'

Which funds do FOF funds have the heaviest positions in the second quarter?

Specifically in terms of fund products, among active equity funds, at the end of the second quarter, the fund with the largest FOF allocation scale was the Taipingyang Securities Great Wall Wealth Appreciation Fund managed by Liu Xu, with a heavy position scale of 0.682 billion yuan. The second and third place funds were the E Fund Ruiheng Fund managed by Xiao Nan and Wang Yuanchun, and the E Fund Supply Reform Fund managed by Yang Zongchang, with heavy position scales of 0.603 billion yuan and 0.557 billion yuan, respectively.

Among stock passive index funds, at the end of the second quarter, the largest fund with FOF heavy position is ChinaAMC Hang Seng Tech Index ETF managed by Xu Meng, with a heavy position of 0.522 billion yuan. The second and third largest funds are respectively Guotai ChiNext Securities Investment Fund (ETF) managed by Ai Xiaojun and ChinaAMC Hang Seng Tech Index ETF managed by Xu Meng, with a heavy position of 0.388 billion yuan and 0.291 billion yuan.

In terms of index enhanced funds, the largest FOF heavy position fund is Huatai-PineBridge CSI 300 Index Enhanced A, managed by Xu Yizun, with a heavy position of 0.153 billion yuan. The second and third largest funds are Huatai-PineBridge SSE 500 Index Enhanced A managed by Xu Yizun and ChinaAMC CSI 300 Index Enhanced Fund jointly managed by Song Yang and Yuan Yingjie, with a heavy position of 0.129 billion yuan and 0.104 billion yuan, respectively.

Among bond funds, the largest FOF heavy position fund is ChinaAMC Credit 1-3 Yr Pure Bond Fund A managed by Huang Yingjie, with a heavy position of 2.103 billion yuan. The second and third largest funds are respectively ChinaAMC Stable Bond Fund and ChinaAMC Fengsheng Income Fund, managed by Huang Yingjie and Yu Haiying, with a heavy position of 0.95 billion yuan and 0.941 billion yuan.

In terms of 'fixed income plus' funds, the largest FOF heavy position fund is E Fund Stable Income A managed by Hu Jian, with a heavy position of 0.515 billion yuan. The second and third largest funds are respectively E Fund Yuxiang Fortune Return A managed by Wang Xiaochen, and E Fund Suifeng TIANLI A jointly managed by Hu Jian and Zhang Kai, with a heavy position of 0.496 billion yuan and 0.376 billion yuan, respectively.

With regard to direct stock FOFs, Contemporary Amperex Technology (CATL) is the top heavy-weight stock.

In addition to investing in funds, FOF fund managers can also choose to invest directly in stocks according to the provisions of the contract and market conditions.

In the second quarter of this year, the stock market continued to fluctuate, but more FOFs chose to invest directly in stocks. As of the second quarter of 2024, 156 FOFs directly invested in stocks, accounting for 31.26% of all FOFs, an increase from 30.06% in the first quarter of 2024.

In terms of the number of FOFs holding the stock with a heavy position, Luxshare Precision Industry, Contemporary Amperex Technology, and Zijin Mining Group rank top 3, respectively held by 27, 23, and 18 FOFs. In terms of FOF's heavy position market value, Contemporary Amperex Technology, Himile Mechanical Science and Technology, and Cmoc Group Limited rank top 3, respectively with a heavy position market value of 0.182 billion yuan, 0.074 billion yuan, and 0.068 billion yuan.

Why do FOF funds invest directly in stocks? Zhang Xiaolong pointed out that FOFs usually consider two angles when investing directly in stocks. First, they have a clear preference for holding stocks or varieties, and there are no similar funds or funds with unclear alpha in the market. Therefore, direct holding of stocks can improve the efficiency of fund utilization. Second, to meet the demand for IPO subscription and capture IPO income. Although the IPO income is not high at present, it is still significant for FOFs, especially bond-oriented FOFs.

Zhang Xiaolong also pointed out that from the current FOF holdings and net asset value fluctuations, most of them still maintain a high proportion of stocks and equity funds, highlighting the confidence in the market.