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It has only been a month and a half since the subscription was released. Why did Qiu Dongrong, who “isn’t enough cash”, restart the purchase restriction?

It was only one and a half months after the opening of the subscription period, when Qiu Dongrong, who had called out “not enough cash” at the time, suddenly restarted the purchase restriction.

On June 22, the Zhonggeng Value Pilot Fund and the Zhonggeng Value Quality One-Year Holding Period Fund, which are managed by Qiu Dongrong, Deputy General Manager and Chief Investment Officer of Zhonggeng Fund, announced purchase restrictions at the same time.

Zhonggeng Fund announced that in order to protect the interests of fund share holders, Zhonggeng Value Pilot Fund and Zhonggeng Value Quality One-Year Holding Period Fund will suspend large-amount subscriptions (including conversion and transfer, regular fixed investment) from June 30. ) and so on. Among them, the Zhonggeng Value Pilot Fund is limited to subscription, conversion and transfer-in, and the fixed investment amount is 10,000 yuan; the one-year holding period of Zhonggeng Value Quality Fund is limited to subscription, conversion and transfer-in, and the fixed investment amount is 100,000 yuan.It has only been a month and a half since the subscription was released. Why did Qiu Dongrong, who "isn't enough cash", restart the purchase restriction? -It-has-only-been-a-month-and-a-half-sinceZhonggeng Value Pilot Fund is the largest of the four funds currently under management by Qiu Dongrong. As of the end of March, the scale was 7.963 billion yuan, accounting for 39% of Qiu Dongrong’s total management scale. The scale of the one-year holding period fund of Zhonggeng Value Quality was 5.841 billion yuan at the end of March.

It is worth noting that the Zhonggeng Value Pilot Fund and the Zhonggeng Value Quality One-Year Holding Period Fund have adjusted large purchase restrictions several times in the past year.

Taking the Zhonggeng Value Pilot Fund as an example, on September 13, 2021, the fund suspended large-amount subscriptions; after experiencing a sharp drop in the A-share market in early 2022, large-amount subscriptions and other businesses were resumed on February 7; however, in February On the 28th, large-amount subscriptions and other businesses were suspended again; until May 10, the fund once again allowed large-amount subscriptions.

After the release of large-scale subscriptions on May 10, Qiu Dongrong made a clear voice in the online live broadcast two days later that he was optimistic about the market outlook, and said that there were too many stocks to buy, and there was not enough cash.

So, why did Qiu Dongrong limit purchases again this time?

Some industry insiders pointed out that the fund purchase restriction can be roughly summarized for three reasons: first, the fund manager judges that the current scale of the product has reached its own management limit, or has touched the optimal size limit of the strategy; second, the fund manager thinks that he is optimistic. The valuation of the track is relatively high, and there are no better alternative targets; third, the investment style is biased towards small and medium-sized caps and emerging growth, and unlimited purchases can easily cause scale discomfort.

And ZhongGeng Fund explained the purchase restriction in this way, expressing three considerations:

First, after the in-depth adjustment of the market this year and the stabilization and recovery, the low-value value investment strategy fund of ZhongGeng Fund has experienced rapid growth in the size of the fund under the double resonance of the fund’s net value and share. “In our opinion, the products of any investment strategy have a scale boundary. We take the expected return rate that cannot affect the product as the boundary, and we will put the expected return rate in the most important position.”

Second, since the first quarter of this year, especially in the bottom area of ​​April, the company’s investment team has shown its optimism about the market’s systemic opportunities. The team believes that with the gradual recovery of the market, the overall equity risk premium level represented by CSI 800 has slightly dropped from an absolute high to around 0.6 times the standard deviation above the average level in the past ten years. Although the risk compensation has decreased compared with the previous period. , but still has a good overall appeal. However, there is a structural rise at the industry level, some popular industries are approaching the previous high or even a new high, and the valuation level has reached a high level. The structural risk of the market should be paid attention to.

Third, the company’s investment team practices the low-value value investment strategy system, and still has the confidence to obtain higher risk compensation by taking risks correctly. “From a bottom-up perspective, there are still many opportunities to choose from, and many high-quality targets can meet the standards followed by ZhongGeng Fund’s low-value value investment strategy. We will actively build a portfolio with low risk, low valuation, and continuous organic growth. , and strive to obtain sustainable excess returns.”

However, ZhongGeng Fund also judged that in the second half of this year, under the expectation of economic recovery and corporate profit recovery, the view on the equity market is more positive and optimistic.

“In the current market environment, we are optimistic about the systematic and strategic opportunities of value stocks represented by resources and energy in Hong Kong stocks, some Internet stocks and growth stocks such as medical technology, and we are optimistic about the large-cap value stocks (financial, real estate, etc.), Energy and resource companies, small and mid-cap value stocks and growth stocks.” ZhongGeng Fund said.

(This article is from CIC, for more original information, please download the “CIC” APP)

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