After the end of the first three-year closure period, the Dongfang Hongrui Xi three-year fixed hybrid fund was opened for the first time yesterday.
The Securities Times reporter learned from the channel that as of 11:00 a.m. on November 16, the fund's sales volume had exceeded 6 billion yuan; as of 2:30 p.m. yesterday, sales had exceeded 12 billion yuan. Yesterday evening, Dongfanghong Asset Management issued an announcement. Starting November 17, the fund will stop accepting large subscriptions of 10,000 yuan or more.
Absorbing more than 10 billion dollars in gold a day
Maximum subscription amount from now on
Established in 2017, Dongfanghong Ruixi was one of the many “hot money” of Dongfanghong's asset management back then. Now that the first three-year closure period has expired, it has once again welcomed active purchases from investors. Yesterday, sales exceeded 12 billion yuan.
Investors are actively entering the market, and fund managers are also actively guiding expectations. Yesterday evening, Dongfanghong Asset Management also issued an announcement. Starting November 17, the fund's various types of shares will be suspended from accepting applications for large purchases (including conversion and transfer of Class A shares) of 10,000 yuan or more (excluding 10,000 yuan) from a single fund account.
Analysts pointed out that according to the product announcement, a single-account subscription limit was set for the fund during the opening period. Mainly, the manager reasonably guides investor expectations and moderately controls the fund size out of consideration of investor interests, which is conducive to fund managers' positions and management, ensures the smooth operation of the fund after establishment, and helps investors pursue stable long-term returns.
The comprehensive support of the three factors
Industry insiders pointed out that the fund's popularity in subscription was mainly due to its impressive performance during the closed period, the three-year fixed opening model, and excellent investment ability.
According to information, Dongfang Hongrui Xi was released on November 8, 2017, and set a scale limit of 2 billion yuan and a subscription limit of 50,000 yuan for a single household. In just one day of issuance, 17.8 billion yuan of subscription capital poured in. Based on the consideration of being responsible for investors and ensuring the smooth operation of the fund, Dongfanghong Asset Management adopted proportional placement. The placement ratio was only 11.22%.
According to public data, from its establishment on November 15, 2017 to November 13, 2020, the Shanghai Composite Index fell 3.48%, the Shanghai and Shenzhen 300 Index rose 18.48%, and Dongfang Hongrui Xi started with a net worth of 1 yuan, and the cumulative net value reached 1.7282 yuan.
The fund manager of Dongfang Hongrui Xi is Wang Yanfei. According to the data, since becoming a fund manager in 2015, as of November 13, 2020, Wang Yanfei's total return during his tenure reached 133.78%, with an annualized return of 16.89%; the Dongfanghong Industrial Upgrade Fund has managed the longest, with a return of 118.68% during his tenure. According to Dongfang Hongrui Xi's semi-annual report, Wang Yanfei's holdings cover a very comprehensive range of industries, including the Internet, media, food and beverage, electronics, home appliances, real estate, medicine and biology, chemicals, automobiles, machinery and equipment, transportation and many other industries.
On the other hand, Dongfang Hongrui Xi also fully demonstrated the advantages of the three-year fixed opening model. Shortly after the fund was established on November 15, 2017, the market began to cool down. In 2018, due to factors such as the Sino-US trade war and financial deleveraging, the A-share market declined unilaterally, and the Shanghai Composite Index fell 24.59% throughout the year. During this period, fund investors generally suffered psychological distress.
Since the fund uses a three-year closed operating model, it has effectively helped investors restrain the impulse of frequent redemptions and avoided catching up with ups and downs under severe market fluctuations. It is this closed model that has enabled investors to finally successfully cross the bull and bear cycle of the market and obtain complete benefits from fund products.
Industry insiders pointed out that the three-year fixed opening model also provides a good guarantee for the smooth operation of the fund. Since fund shares remain stable during the closed period, fund managers can make full use of fund assets, calmly implement their own investment strategies, maintain the stability of investment strategies, and better grasp medium- to long-term investment opportunities in high-quality stocks. Especially when the market is in panic, the total share of closed-period funds is stable, and fund managers face less pressure on liquidity management, so there will be no situation where they are forced to sell good stocks at low prices, which is conducive to controlling fluctuations in the net value of funds.
It is worth noting that in the asset management industry, Dongfanghong Asset Management is the manager who launched closed-period products earlier. As early as 2011, a pooled product with a closed period of two and a half years was issued. After obtaining a public fund license, the first fund product closed for three years to LOF, the Dongfanghong Ruifeng Hybrid Fund, was launched in September 2014. It was later extended to different types such as three-year fixed opening, five-year fixed opening, and three-year holding periods, forming a closed-period fund product line with Dongfanghong characteristics.
