After nearly two years of structural market, investors’ cautious sentiment towards A-shares has increased, but the A-shares as a whole have continued to fluctuate higher this year. As of January 21, the Shanghai and Shenzhen 300 Index rose nearly 6.79%; while the first two Hong Kong stocks with weaker annual performance have surged strongly this year under the pursuit of funds. Southbound funds have net purchases of over HK$10 billion for 14 consecutive trading days. Many institutions believe that Hong Kong stocks are expected to usher in a good time for investment. In this context, a balanced allocation of A shares and Hong Kong stocks may be a good choice for asset appreciation.
The Huaxia Consumer Leading Hybrid Fund (A: 011282; C: 011283) issued on January 28 will be based on fundamentals and will select long-term investment in leading consumer companies with core competitiveness and reasonable valuation in A-shares and Hong Kong stocks. On the basis of controlling fluctuations, it helps investors to grasp the dividends of economic transformation and consumption upgrades and obtain long-term sustainable and stable income.
According to the data, the proportion of China's consumer leaders that can invest in stock assets accounts for 60%-95% of the fund's assets. Among them, the investment in stocks under the Southbound Stock Connect accounts for 0-50%. The investment scope covers A-shares and Hong Kong stocks, which helps to bring a better investment experience through asset allocation. The current Hong Kong stock market capitalization consumer stocks are mainly concentrated in sportswear, education, gaming and other industries, while the A-share market capitalization consumer stocks are mainly concentrated in the field of liquor and home appliances, and the correlation between the two market consumer sectors is weak , Which can effectively diversify risks, but also complement each other and fully cover large consumer industries.
The outstanding investment ability of fund managers is an effective guarantee for China's consumer leaders to seize the opportunity of long-term consumption. The proposed fund manager Huang Wenqian graduated from Fudan University with a master's degree in finance and is currently the director of the investment research department of China Asset Management. Since 2008, she has continued to deepen the research of the consumer industry, formed the concept of long-term value investment, and cultivated solid basic skills in investment research. She has been committed to looking for companies that can provide an annualized return of more than 15% from industries with good business models and competitive landscape in the dimension of 3-5 years, and balance the fluctuation of portfolio through moderate reverse. She emphasized: "The core element of investment is still the company's profit growth to bring sufficient cash flow, and then return to shareholders with stock prices or dividends, which is the essence."
Excellent investment and research capabilities have created considerable returns, Huang Wenqian Since February 3, 2016, it has managed China’s consumption upgrade, focusing on exploring investment opportunities in leading stocks in the food and beverage, home appliances, pharmaceutical, and duty-free industries.Long-term performance is outstanding. According to Galaxy data, as of January 15 this year, Huang Wenqian had a cumulative management return of 224.1% and an annualized return of 26.76%. The return in the past three years has been in a flexible allocation fund (the upper and lower limit of stocks is 0-95% + the proportion of benchmark stocks is 30%-60% ) Ranked in the top 1/5, and won the five-star rating of the Galaxy in three years.
What needs attention is that after the continuous rise, the valuation of A-shares is at a relatively high level. Although consumption is a long bull track, how to configure it will also test the strength of investors. Huang Wenqian said that to find a target with a higher expected rate of return, one has to choose from some second-tier industries and targets. Therefore, excessive in-depth research and tracking are needed to compensate for the uncertainty and risk and improve the winning rate.
At the same time, Huang Wenqian is also optimistic about the investment opportunities of Hong Kong stocks during the year, especially the leading companies in the new economy track represented by the Internet, education, and catering. Hong Kong stocks have many high-quality targets in these fields, which are a good complement to A shares. She said that the certainty of the corporate profit cycle is increasing, the continuous inflow of domestic and foreign funds, coupled with the large number of Internet companies that are expected to return to Hong Kong stocks, may form an important investment window, and the new foundation will focus on the layout.
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