The crude oil market has been bloodwashed, and these oil and gas QDII have fallen miserably!
Last week, the crude oil market was ransacked, and the price of WTI May futures contract fell all the way to-$40, down more than 300%. As a result, domestic oil and gas QDII has also suffered heavy losses. Its China-Thailand commodities plunged 22.17% on April 21, leaving a net worth of only 0.1580, which also broke the previous record of 0.1663 net worth of Warburg Oil and Gas, making it the worst oil and gas QDII at present.
According to the Cathay Pacific Commodities Quarterly report, the fund did not allocate all kinds of commodities evenly, but chose heavy crude oil-related investments. Among the top 10 heavy positions of the fund, 6 are crude oil ETF funds, accounting for 58.95% of the total. So, UCO, DBO, BRNT, OIL, USL and so on are all among the top 10 positions, of which USO accounts for 18.11% of the fund's net asset value, accounting for 17.03% and 10.40%.
At present, the turmoil in the crude oil market has attracted a large number of investors to enter the game, and the scale of oil and gas QDII has skyrocketed. Among them, the fund size of Castrol crude oil increased by 1490% month-on-quarter, Hua an S&P Global Inc. oil fund size increased by 787% month-on-quarter, and Nuoan oil and gas energy fund size increased by 573% in the first quarter. However, at present, most crude oil funds have the risk of high premium, which investors need to consider carefully.
Cathay Pacific commodities became the worst oil and gas QDII for crude oil investors, the market was definitely "long-lived" last week. The price of WTI crude fell 35.63% on April 21, closing at $13.15 a barrel, with a low of $6.47 a barrel. As of 3pm on April 27th, WTI crude fell more than 10 per cent on the day.
The crude oil market was bloodwashed, which directly led to a large number of oil and gas QDII funds suffered heavy losses. Among them, according to Wind statistics, Cathay Pacific commodities plunged 22.17% on the day, leaving only 0.1580 net worth. Cathay Pacific's commodity net worth rebounded slightly as of April 24, with its latest net worth of 0.1610, which has fallen 67.86 per cent since the beginning of this year.
The lowest net worth of Cathay Pacific Commodities Fund 0.1580 also broke the previous record of 0.1663 net worth of Warburg Oil and Gas, making it the worst oil and gas QDII.
It is reported that the investment goal of Cathay Pacific Commodities is that the fund aims to share the gains from the growth of commodity markets on the premise of effectively controlling the overall volatility of the fund's assets through decentralized allocation among commodities and dynamic allocation among commodity and fixed income assets.
However, according to Cathay Pacific Commodities' quarterly report for 2020, the fund did not allocate commodities evenly, but chose investments related to heavy crude oil, which led to a huge pullback.
Wu Xiangjun, a fund manager, said, "for crude oil, we need to pay close attention to whether Saudi Arabia and Russia can return to the negotiating table in early April and reach an agreement on production reduction. At present, crude oil is experiencing historic accumulation, and production cuts in Saudi Arabia and Russia are imminent. But given their demand that the US join in the production cuts and Mr Trump has yet to respond positively, there is still a risk that the talks will break down, which could lead to renewed pressure on oil prices, which have rebounded strongly since April. At present, Cathay Pacific Commodities Fund is relatively heavy crude oil-related investments, in the future we will closely track changes in global commodities, especially the fundamentals, news and emotional aspects of the oil market. "
There is a high premium risk in the fund it is reported that Cathay Pacific Commodities has previously issued a number of fund premium risk reminders that the fund's recent secondary market trading prices are volatile and the premium range is high, prompting investors to pay attention to the secondary market trading price volatility risk and the secondary market trading price relative to the fund share net value continues to appear the risk of high premium on the floor.
However, the risk tip announcement did not curb investors'"bottom-reading" enthusiasm. Cathay Pacific's total share of the commodity fund was 1.655 billion at the end of the first quarter of 2020, compared with 546 million at the end of the fourth quarter of 2019, up 203 per cent from the first quarter, according to quarterly data.
This phenomenon is not limited to Cathay Pacific's commodities fund. According to the statistics of Chinese journalists from brokerages, oil and gas QDII funds generally have a high premium rate, of which the premium rate of RMB share of Yifangda crude oil is as high as 98.43%, that of southern crude oil An is 94.85%, and that of Cathay Pacific Commodities Fund is 52.80%, which is risky.
However, the size of oil and gas QDII funds has exploded. Among them, the fund size of Castrol crude oil increased by 1490% month-on-quarter, Hua an S&P Global Inc. oil fund size increased by 787% month-on-quarter, and Nuoan oil and gas energy fund size increased by 573% in the first quarter.
Since 2020, the net fund value of Castrol crude Oil, Yifangda crude Oil A RMB, Cathay Pacific Commodities and Southern crude Oil A has all been halved.
It is reported that a large number of "bottom-reading" capital influx, resulting in crude oil fund foreign exchange quota nearly exhausted, a number of QDII funds have restricted large purchase transactions or even completely suspended purchase.
Heavy crude oil ETF led to a huge pullback, with 66.81 per cent of funds and 33.19 per cent of bank deposits, according to Cathay Pacific Commodities Fund's quarterly report.
At the end of the reporting period, 6 of the top 10 heavy positions in the fund were crude oil ETF funds, accounting for 58.95% of the total. UCO, DBO, BRNT, OIL and USL were all among the top 10 positions, of which USO accounted for 18.11% of the fund's net asset value, accounting for 17.03% and 10.40%.
Unlike the oil and gas company ETF, crude oil ETF tracks the price index of spot crude oil, so when oil prices fall sharply, crude oil ETF will produce a large pullback.
By contrast, ETF, an oil and gas company, tracks a basket of stocks in American oil and gas companies and is relatively resilient when oil prices fall sharply. For example, the target index of Warburg Oil and Gas is the S & P oil and gas upstream stock index, which is one of the selected sub-industry indexes based on the S & P whole-market index. Companies in oil and gas exploration, extraction and production listed on major exchanges in the United States (New York Stock Exchange, American Stock Exchange, NASDAQ, etc.) are selected as targets and calculated by equal market capitalization weighting method.
Since April 20, as of April 27, the Warburg oil and gas range has fallen by just 1.98%, well below the decline in Cathay Pacific commodities.
