China Fund News Reporter Fang Li Intern Wang Jialin
The fund industry has begun to "roll up" again. This time it is the issuance of the first batch of carbon-neutral ETFs.
The first batch of carbon-neutral ETFs have just received the " birth certificate " and staged a "lightning" plot to enter the issuance. On June 29 and 30, E Fund, GF, Fuguo , Southern, China Universal , China Merchants, ICBC Credit Suisse , and Dacheng released relevant recruitment documents, and it was only two days before they were approved.
has been along the way, from application, approval to issuance, the first batch of CSI Environmental Exchange Carbon Neutral ETFs has moved very quickly, recreating the grand issuance of the first batch of Science and Technology Innovation Board funds in 2019.
Fund Manager sorted out the first batch of 8 funds with stable recruitment. These funds all chose to officially launch on July 4, and the fundraising period was only 3 to 5 days. Against the background of gathering many leading companies in the industry, it can be said that the issuance of carbon-neutral ETFs will be one of the biggest concerns in the industry next week.
Judging from feedback from the industry, many investors are optimistic about the future prospects of green investment, including carbon neutrality. Through carbon-neutral ETFs, ordinary investors can more easily deploy funds in the field of low-carbon sustainable development.
The first batch of carbon-neutral ETFs were officially released on July 4th
The CSI Carbon-neutral ETFs are finally coming out! It’s July 4th!
(Data source: wind)
Judging from the issuance time, the first batch of eight funds will start from next Monday (July 4). However, the length of the fundraising period is different. GF, Wells Fargo, E Fund and Southern Fund raised funds. The duration is only 3 days, and the remaining four companies, China Universal, Dacheng, China Merchants and ICBC Credit Suisse, chose 5 days for the fundraising period.
This time, some fund companies have also specifically set a cap on the size of their initial fundraising. For example, GF, Wells Fargo, and E Fund have all set a fundraising cap of 8 billion yuan. ICBC Credit Suisse has set a cap on the issuance of 2 billion yuan. The remaining four companies have not set a issuance scale for the time being. .
It is worth noting that due to the issuance of the first batch of carbon-neutral ETFs, the vast majority of fund companies have chosen securities firms as their main distribution channels. Many fund distribution channels have now reached 99 securities firms. This issuance war will be very fierce. .
In addition, from the perspective of listing locations, the carbon neutral ETFs of China Southern Asset Management, ICBC Credit Suisse, China Merchants Fund, and Dacheng Fund will be listed on the Shenzhen Stock Exchange. In addition, E Fund, Guangfa Fund , Wells Fargo, China Universal Fund will be listed on the Shenzhen Stock Exchange. is listed on the Shanghai Stock Exchange.
In terms of rates, the annual custody rates of these eight carbon-neutral ETFs are all 0.10%. The management rates are all 0.5% except for ICBC Credit Suisse, which is slightly lower at 0.45%.
has sent out its best troops to launch the issuance of carbon-neutral themed ETFs, providing a convenient way for individual investors to deploy low-carbon and sustainable development sectors. In order to make carbon-neutral themed investments, various public funds have sent out elite teams.
From the current perspective, the first batch of carbon-neutral ETFs are basically managed by a single fund manager. Among the fund managers in charge of the first batch of CSI Carbon Neutral ETFs, the most experienced “veteran” is Lu Zhiming of GF Fund. According to the fund prospectus, he holds a master's degree in economics and has served as a researcher at Dapeng Securities, director of the department of Shenzhen Securities Information Co., Ltd., general manager of the quantitative investment department, deputy general manager of the index investment department, deputy general manager of the quantitative investment department and fund manager of Guangfa Fund. etc., currently managing multiple index products. He started in the industry in 1999 and has been investing for more than 11 years.
Zhao Xu, the proposed fund manager of the ICBC Credit Suisse CSI Shanghai Environmental Exchange Carbon Neutral ETF, has 14 years of experience in the securities industry and currently has a management scale of 116.15. He joined ICBC Credit Suisse in 2008 and is currently the deputy general manager and fund manager of the Index Investment Center. The number of funds under management has reached 20, and the number of funds currently under management is 15, including ICBC SSE Central Enterprises 50 ETF, ICBC Credit Suisse GEM ETF, ICBC SSE 50 ETF, etc.
Wang Lele, the proposed fund manager of Wells Fargo Shanghai CSI Shanghai Environmental Exchange Carbon Neutral ETF, also has extensive experience in the industry. He has a doctoral degree and served as a researcher at Shanghai Securities, a joint researcher at Huatai Securities, a researcher at Huatai Securities, and the head of the innovation planning team ; Since joining Wells Fargo Fund in May 2015, he has served as quantitative fund manager and assistant to the quantitative investment director of the Quantitative Investment Department; he is currently the ETF investment director and senior quantitative fund manager of the quantitative investment department of Wells Fargo Fund, managing multiple index funds .
Xu Rongman, the proposed fund manager of China Merchants Securities Shanghai Environmental Exchange Carbon Neutral ETF, currently manages funds approaching 18 billion. She joined the Quantitative Investment Department of China Merchants Fund in 2015 and served as a brand promotion manager and researcher. ,senior researcher. There are currently 10 funds under management, all of which are passive index funds, including China Merchants National Securities Biomedicine A, China Merchants Shanghai Securities Consumer 80 ETF, China Merchants China Securities Photovoltaic Industry A, etc.
In addition, there are also some players who have switched from investment managers to fund managers. For example, Zhu Henghong, the proposed fund manager of Southern Carbon Neutral ETF, holds a master's degree in economics from Peking University. He joined Southern Fund in July 2016 and has served as an assistant researcher in the Quantitative Investment Department and a researcher in the Index Investment Department. He once Until December 25, 2020, he served as investment manager. There are currently 5 funds under management, namely Southern Strategy Optimization, Southern CSI Innovative Drug ETF, Southern CSI Hong Kong Technology ETF, Southern CSI All-Index Healthcare Equipment and Services ETF, and Southern Hang Seng Hong Kong Listed Biotechnology ETF.
closely tracks the carbon neutral index
According to the prospectus documents of the first batch of carbon neutral ETF funds, the main investment strategy adopted by these funds is the complete replication method, closely tracking the underlying index, and pursuing the minimization of tracking deviation and tracking error. .
Judging from many recruitment documents, under normal circumstances, these funds strive to control the absolute value of the daily average tracking deviation between the net value growth rate of the investment portfolio and the performance comparison benchmark to be less than 0.2%, and the annualized tracking error does not exceed 2 %.
What does the CSI Shanghai Environmental Exchange Carbon Neutral Index look like? According to the compilation rules, the CSI Shanghai Environmental Exchange Carbon Neutral Index selects from the Shanghai and Shenzhen markets those with larger market capitalization in deep low-carbon fields such as clean energy and energy storage, as well as those with medium carbon emissions reduction in high-carbon emission reduction fields such as thermal power and steel. A total of 100 listed company securities with greater potential are used as index samples to reflect the overall performance of listed company securities in the Shanghai and Shenzhen markets that have made a greater contribution to carbon neutrality.
The index uses June 30, 2017 as the base day and 1000 points as the base point. As of the latest closing day, the index closed at 2184.38 points.
data shows that from the perspective of constituent stocks , as of June 22, 2022, the total market value of sample companies exceeded 10 trillion yuan, and the overall market value style was biased towards and the larger market , giving greater weight to industry leaders with higher development certainty. According to the weight, the number of stocks with a market value greater than 100 billion reaches 32. The top ten constituent stocks include Ningde Times, Longi Green Energy, BYD, Zijin Mining, Yangtze Power and other industry chain leaders.
Judging from historical performance, according to wind data, as of June 27, 2022, the annualized return rate of the SEEE Carbon Neutral Index since the base date is 16.73%, which is significantly higher than the annualized return rate of the Shanghai and Shenzhen 300 of 3.39%; at the same time, the annualized return rate is 16.73%. The volatility is 23.93% and the maximum drawdown is 34.13%, both lower than similar indices such as Mainland Low Carbon, CSI Environmental Protection and Environmental Protection 50 Index.
Judging from the current valuation, the dynamic price-to-earnings ratio of the SEEE Carbon Neutral Index is 23 times, which is at a relatively low level in history after early adjustments, and the investment performance-price ratio is outstanding.
From the perspective of performance growth, although there is certain pressure on upstream costs due to the impact of global high inflation, the index's consensus expected net profit growth rate in 2022 will still reach 44%, and the consensus expected revenue growth rate in the next three years will be 19% and 11% , 12%, both higher than the CSI 300.
E Fund said that compared with previous "carbon neutral" indexes, the CSI Shanghai Environmental Exchange Carbon Neutral Index has four characteristics. First, the index is jointly compiled and published by authoritative institutions, which makes it more authoritative. Secondly, the index samples comprehensively cover the five main investment lines on the path to achieving carbon neutrality.Including, new energy power generation , new energy vehicles, carbon reduction and carbon sequestration technology and other deep low-carbon fields, as well as high-carbon emission reduction fields such as steel, chemical industry and thermal power transformation. By investing in this index, it can effectively help investors grasp the entire industry chain. Investment opportunities, don’t miss any investment opportunities within the theme. Thirdly, the index compilation method adopts more scientific stock selection ideas and weight allocation. The index is based on the industry emission reduction model under the path of carbon neutrality. It calculates the contribution of the two major fields of deep low-carbon and high-carbon emission reduction every year, and then determines the number and weight of samples in each field based on the degree of contribution. It is compiled professionally. Ideas, scientific stock selection and weight allocation are more representative of carbon-neutral development. Finally, the index has outstanding long-term returns in history, effectively controls volatility and drawdown, and has obvious advantages in risk-return ratio.
Lu Zhiming, the proposed fund manager of the GF China Securities Shanghai Environmental Exchange Carbon Neutral ETF, said bluntly that the issuance of fund products tracking the index provides investors with new analytical tools and investment targets for green investments, and also further enhances the capital market. The ability to serve the green transformation and upgrading of the economy will make a huge contribution to guiding market institutions and ordinary investors to make green investments.
Focuses on the big trend of "carbon neutrality"
Carbon neutrality is a long-term development direction with high layout value, and many people are optimistic about its investment value.
The relevant person in charge of ICBC Credit Suisse Index Investment Center said that carbon neutrality It is not only China's commitment to the world, but also China's responsibility to achieve energy transformation, maintain energy security and promote a community with a shared future for mankind. It reflects China's responsibility as a major country and is of great significance. China proposed to achieve carbon by 2030 at the United Nations General Assembly. Peak will achieve carbon neutrality by 2060. Compared with developed countries, the time to reach peak carbon neutrality is shorter and there is a long way to go. This means that China will invest more in carbon neutrality. Resources, policies and market-oriented paths will accelerate the realization of carbon neutrality.
"In the capital market, the theme of carbon neutrality is expected to become the mainstream investment direction in the market in the next 40 years. Taking advantage of the historical opportunity of energy transformation, through "1+N" carbon. The neutralization policy system, from carbon reduction paths to safeguard measures, will gradually realize structural adjustment and industrial upgrading in many fields such as energy, industry, construction, transportation, etc., and form a more comprehensive industrial chain on the supply side, transmission and distribution side, and demand side. More investment opportunities will allow more market participants to share the dividends of economic transformation. "The above-mentioned person said.
The above-mentioned person further stated that after the current adjustment of the equity market, risks have been effectively released. With reasonable valuation levels, relatively loose funds, and the economy gradually recovering from the impact of the epidemic, market hot spots and The carbon-neutral theme investment in the boom track has more investment value and investment performance-price ratio. In the future, with the gradual entry of pension funds into the market and the improvement of market effectiveness, the market's investment value in the carbon-neutral theme is also expected to accelerate.
富国双. Wang Lele, the proposed fund manager of the Carbon ETF, said that the significance of "carbon neutrality" is self-evident. This is China's commitment to the world. In the process of advancement in the next 40 years, industry-level investment opportunities will emerge. . With the release of the relevant opinions and action plans of the State Council on carbon neutrality and carbon peaking, my country has made an overall plan to promote carbon peaking and carbon neutrality, with "carbon peaking in 2030 and carbon neutrality in 2060" as the core. The nodes set stage goals and achieve them in stages. Based on the experience of Europe and the United States, the transition period from "carbon peak" to "carbon neutrality" lasts 50-70 years, while our country only has 30 years, which means that our country may be more mature. Steep energy saving and emission reduction path.
Wang Lele believes that under this goal, it will have a significant impact on traditional industries and new energy industries. Specifically, the proportion of clean and low-carbon energy including photovoltaics, solar energy, wind power, etc. is expected to continue to increase. , the industry market has broad prospects; at the same time, high-carbon emission industries such as coal and steel will also face accelerated clearance of backward production capacity and increased concentration, and are expected to usher in a new round of "supply-side reform". Overall, in the carbon industry. and related investment fields, the industrial chain market space is large enough, and Chinese companies have global competitiveness, which will give rise to large theme opportunities and world-class outstanding companies.
Dacheng Fund also stated that carbon emissions have a profound impact on the global environment, and carbon neutrality has become the general trend of world development. Our country started its layout from the "14th Five-Year Plan", coupled with policy support, to guide investment to low-carbon emission reduction, and gradually achieve the "double carbon" goal in stages. Industries related to carbon neutrality include deep low-carbon fields such as photovoltaics, wind power, hydropower, and new energy vehicles, as well as traditional high-carbon emission reduction industries such as thermal power and steel. In the long term, the necessity and broad space for carbon neutrality is expected to continue to bring good returns to the investment sector under this theme.
Editor: Captain
