Poor Performance Of Hongde Fund Equity Products: Wu Chuanyan'S "Star Effect Falling" Causes Industry Reflection

There is a new story in the industry: star fund managers often apologize for poor performance.

Under the stimulation of making money effect in the past year, pop fund appeared frequently, and the management scale of star fund managers continued to rise. However, with the fluctuation of the market, the performance of many star fund managers has gone down sharply.

According to the 21st century economic report, Wu Chuanyan, a star fund manager with a management scale of nearly 50 billion yuan at the end of 2020, has lost all the earnings of the six funds under his management since this year.

Among them, Hongde Zhuoyuan's yield since the beginning of the year was - 10.26%, the worst performance, and the largest withdrawal reached - 23.04%.

It is worth mentioning that Hongde Zhuoyuan was issued on December 18, 2020, and the fund sold out more than 10 billion on the first day of its launch, and ended the raising in advance.

At that time, Wu Chuanyan, the fund manager, attracted a large number of funds with his steady and long-term performance.

According to wind data, as of December 17, 2020, the total return of Hongde foresight management since August 2015 was 192.45% and the annualized return was 22.34%.

"Last year, the performance of public funds was good. Star fund managers had a stronger gold absorption effect, and fund managers with a management scale of tens or even hundreds of billions appeared. But when the scale is larger, the management difficulty will inevitably increase, especially when the market style changes, the short-term fluctuation of fund manager's performance is inevitable. " A large public fund in Beijing told the 21st century economic reporter.

Star fund managers bottom

Only from the perspective of Hongde fund, Wu Chuanyan management of a number of products since this year's income ranked at the bottom.

According to wind data, four funds managed by Wu Chuanyan, including Hongde Zhuoyuan, Hongde Zhenyuan return, Hongde Fengze for three years, and Hongde Fengrun, held hybrid funds for three years, with an average loss of more than 5% as of August 11 this year.

In addition to Hongde Zhuoyuan, Hongde Zhenyuan return, Hongde three-year Fengze and Hongde Fengrun's three-year hybrid funds have all been established for more than one year, and Hongde Zhenyuan return has the longest established period of 3.28 years.

Hongde Fengrun has held a mixed fund for three years, and Hongde Zhenyuan has the largest returns, with the scale of 12.564 billion yuan and 9.386 billion yuan respectively at the end of the second quarter of this year.

Wu Chuanyan's reputation as Hongde farsighted return is the only one of the six funds under his management with a positive rate of return this year. The fund's return so far this year as of August 11 is 1.9%, and the fund's size as of the second quarter was 7.107 billion yuan.

In contrast, since this year, the average return of hybrid funds in the whole market is 7.63%, and the performance of several products of Wu Chuanyan lags behind the overall average.

The reason for this result can be seen from the fund allocation.

The 21st century economic reporter found that many of Wu Chuanyan's funds were heavily invested in Hengrui medicine. The stock price of Hengrui pharmaceutical has continued to fall this year, with a decline of 39.78% as of August 12.

Taking Hongde foresight return as an example, Hengrui pharmaceutical is its fourth largest warehouse stock. Wu Chuanyan's earliest heavy position on this stock can be traced back to 2015.

The 21st century economic reporter found that from Wu Chuanyan's past point of view, long-term thinking and value investment have always been its basic logic.

This can also explain why in this year's market changes, the fund management position adjustment is not obvious.

In the middle of the year, Wu Chuanyan also highlighted the need to change personal style to adapt to the market in the short-term changes of the market.

Wu Chuanyan said that in the second quarter, the fund completely gave up the game thinking, firmly adhered to the long-term principle, maintained the relative stability of the stock allocation ratio and portfolio structure, and did not adjust the allocation ratio and structure because of the changes in short-term and medium-term market expectations.

It said it took a long time to think about and communicate with clients about the long-term nature of investment.

"When we are faced with a market with high volatility and significant style switching, we are still asked whether we need to change our style to adapt to market changes when there are obvious short-term opportunities in the market. I understand that this will make us feel better in a short period of time, but the fund has not done so because it is against our long-term investment return target. " Wu Chuanyan pointed out.

On August 12, the reporter of 21st century economic report interviewed Hongde fund, but no reply was received.

Can the myth of scale last

Contrary to the current desolation, it is the myth that the scale of Hongde fund has skyrocketed before.

In 2020, with the continuous development of equity products, the management scale of Hongde fund will exceed 100 billion yuan. Compared with that in 2019, the management scale has increased by 73.9 billion, of which the scale growth of equity products is close to 70 billion.

For a fund company which was established less than six years at that time, it was already excellent. According to the data, on February 13, 2015, Hongde fund was officially approved by the CSRC, becoming the first China Public Fund Management Co., Ltd. initiated by professionals.

The Hongde vision return of Wu Chuanyan management will increase by more than 5 billion in 2020. From the perspective of new funds, Hongde fund will issue 6 new funds in 2020, with a combined share of 22.5 billion.

It is worth mentioning that in the first few years of Hongde fund's establishment, the growth of its management scale is not obvious. Until 2019, the management scale of Hongde fund starts to rise significantly, and the management scale will exceed 100 billion by the end of 2020.

A big market background is that the management scale of public funds will reach a record high in 2020. According to the data of the fund industry association, by the end of December 2020, the total asset management scale of public funds in China was 19.89 trillion yuan, an increase of 34.70% compared with the end of 2019.

"When the market is hot, everyone will seize the opportunity to launch new products for large-scale development. We have seen many star fund managers emerge in the past year, and channel marketing has boosted the birth of many popular funds. But when the market adjusts and fund returns fluctuate, investors will also vote with their feet. " A public fund channel in South China said.

The 21st century economic reporter found that two of the six new funds issued by Hongde fund in 2020 were managed by Wu Chuanyan.

In fact, after the high point, the overall management scale of Hongde fund tends to be stable. The current management scale of star fund manager Wu Chuanyan is about 6 billion less than that at the end of last year, among which the scale of return of Hongde vision is nearly 3 billion.

In fact, at present, many star fund managers can not escape the embarrassment of insufficient fund performance after the scale explosion, and the scale and performance problems of star fund managers to manage funds are highlighted again.

"On the one hand, it is difficult to manage large-scale funds. Buying and selling will impact the price of a single stock and increase trading losses. At the same time, it will be more difficult to pursue excess returns, especially when fund managers try to obtain excess returns through centralized shareholding." Said the public offering fund.