Fund manager reply | “choose base difficult” + “can not hold”, two big ultimate problem how to break?

2022-07-18 0 By

Veteran hunter take you to crack a key!At the beginning of the year of the Tiger, the market shock intensified, and the investment preferences of the people also changed.Many friends left a message on the discussion board saying that under the volatile market, there is more attention to fund withdrawal control, risk control and diversification of asset allocation.However, the vast array of fund products, how to choose the preferred fund products and fund managers?Is it impossible to “hold on” to mood swings?Don’t panic!Today we have a veteran gay hunter, who has met all your problems and his thoughts are here…Fund strictly selected hunter: arvin, asset allocation, deputy director of zhejiang university physics Dr 12 months hold hybrid robust optimization of silver by type (‘) aspiring fund manager 10 + years of experience in securities industry, nine years experience in investment management of insurance funds has a good sense of absolute return, wind bulk chemical investment style and risk management experience in question 1:As an FOF fund manager, what is the biggest difficulty in choosing a base for you?What kind of products do you recommend to pay attention to?Wu Wei: How to choose the right fund for yourself is the most difficult part. The “right” here includes: risk appetite, investment style, operation style and portfolio management.Therefore, in the current market, we pay attention to FOF products, which will buy and hold multiple funds with different investment styles in a basket, so as to “share the pie” in various market conditions and reduce the return volatility when market styles switch.Now by me as an aspiring fund managers hold hybrid robust optimization of silver 12 months by type (‘) (hereinafter referred to as the “robust optimization”) is sold, this product in the selected funds for everybody, risk control, completes the asset allocation of the holding period at the same time set up 12 months, turmoil in solving city selected base problem at the same time, also can help us to hold hands.Problem 2: say fund suits to hold for a long time, what is the basis?What kind of fund is more suitable for long-term holding as a core position?Wu Wei: To invest in the fund as a portfolio, you need to have the determination to release the alpha ability of the fund manager through time, rather than chasing short-term returns. That’s the reason for long-term holding.In the current market, it is difficult for most ordinary investors to generate excess returns through trading. In many cases, fund performance has not been released and investors have redeemed it just because of some short-term fluctuations. Therefore, we still suggest that we hold core positions for a long time.Taking robust optimization as an example, our operating idea is that as long as the basic situation of the fund does not change significantly, such as the change of fund manager, rapid expansion of fund scale, deviation of fund style from original intention, long-term alpha ability of the fund is reduced, we will generally hold the fund for a long time.Of course, this is not true for all funds, we refer to the equity core holdings, which are mainly active managed equity or hybrid funds that obtain excess returns.For passive funds, industry funds and funds with obvious stylization, from the perspective of professional investment, we are generally just as investment tools, and may participate in a small amount at some time, but may not hold for a long time.This idea is for your reference.Question 3: As a proposed fund manager, how does he position himself on the FOF product, which is emerging as a robust optimization?Wu Wei: I hope to make an FOF suitable for the following customer groups: the style is generally balanced, but there will be certain exposure in some periods, the core position trading frequency is not high, but some strategies will change hands according to the market and model conditions, and it is a portfolio of multiple strategies and multiple income sources.The purpose is still to do some balance on risk and return, and through asset allocation and fund selection one-stop to meet everyone’s investment needs.Question 4: In volatile markets, how to control the retracement and volatility while striving for higher Alpha returns?Wu Wei: Again, taking robust optimization as an example, I mainly adopt two points.The first is through a stable asset allocation, as far as possible to avoid the ups and downs, head – beating, gambling – style investment.We will maintain the risk of fund portfolio at a relatively stable level, and carry out ultra-low allocation within a certain range, so that the fluctuation of the whole portfolio of FOF mother fund can be controlled.According to the fund contract, the proportion of stable preferred equity assets is 10-50%, which is similar to fixed-income + hybrid funds, so the overall volatility experience will be relatively close.At the same time, because the equity position is not more than 50%, and 50% is the equity center of many balanced hybrid funds, so we will strive to control the stable preferred volatility more stable than balanced funds.The second is through alpha capability.Most of the time, low volatility low retrenchment is not difficult to do, as long as all choose conservative strategy, but that combination of style is offset on one side, and in some market environment and there is no offensive, is commonly known as “rise immovable”.Therefore, I will also look for various sources of alpha to strive for more returns beyond the market, while reducing the internal correlation of the portfolio, so as to partly resist the risk of market fluctuations and strive to bring reasonable returns to investors.Q5: Asset allocation is about risk hedging, how to achieve this?Wu Wei: Risk hedging is very important. If we invest in funds with very high correlation and similar income sources, then most of the time these funds will rise and fall at the same time, and the effect of controlling risks is limited.So in our portfolio will also focus on the research of some alternative fund positions, of course, these funds are investment in the fund contract within the scope of public funds, but their investments with A shares some different, such as deep funds can invest Hong Kong Shanghai and HongKong, QDII funds can invest in overseas market, convertible bond funds and quantitative hedge funds, and so on.We also take into account market factors, whether the valuation is reasonable, whether it is a good time to invest and so on.Through this kind of fund, we hope to reduce the correlation of various assets within the portfolio, play a certain risk control effect, and hope that the portfolio has some different income sources.Q6: FOF products have many advantages, but there may be “double charge” when buying FOF products, and the transaction cost of the fund may also lose the fund’s income. How to control this part of the cost?Wu Wei: Most of the positions held by our fund are core positions, which will be held for a long time if there are no problems with the sub-fund. The transaction cost of this part will be very low.For some satellite positions, if there is a possibility of transaction, we will purchase class C shares.For trading positions, we will use instrument-based funds, such as ETFs, to reduce trading costs as much as possible.For alternative positions, similar to the core positions, we will choose to intervene at a reasonable price and wait for certain benefits to come out. Of course, this holding cycle will be long, so our parent fund also adopts a one-year holding period to avoid the impact of investors’ subscription and redemption on the asset portfolio.Q7: What are the differences/advantages of robust optimization compared to other FOF products?Wu Wei: 1. High investment discipline.For example, asset allocation model mainly uses quantitative model, which can avoid human greed and fear as far as possible.If our rebalancing is mandatory, try not to chase the upside down;For example, quantitative model is also used in our fund primary election, so we can find fund candidates suitable for us from a bunch of complicated products.For example, we also scored the fund item by item according to objective points to avoid emotional interference.For example, we use a large number of quantitative tools in our trading behavior, portfolio optimization, fund performance analysis, industry and style analysis, so that we can have a more scientific decision basis.2, the strategy is rich, we will choose the fund from four types of holding ideas, categories below the subdivision, our most important holding is the core holding, which contains the vast majority of bond funds and most of the equity class, mixed fund;The bulk of the remaining positions will be in trading positions, with a bit of bond funds and passive, stylized equity instruments, followed by satellite positions, and finally alternative investments.Actual investment may be subject to some adjustment according to market conditions;3, compared with the fixed charge plus or one-year endowment ‘have the rights and interests of a slightly higher positions, it can have larger adjustment space, also can have some money to achieve different objectives, strive to higher earnings targets of over, of course, with the risk also increases, which requires the categories of asset allocation, fund of two layers of the risk management strategy level.To sum up, the highlights of the fund are: discipline allocation, diversified strategies, double-layer risk control, and strive to grow profits.Note: Wu Wei, PhD candidate.He joined SIYIN Fund In July 2020 and is now deputy Director of asset Allocation Department of SIyin Fund Management Co., LTD., a fund manager since September 2021.He was a postdoctoral researcher at Zhejiang University.From 2010 to 2011, worked as a quantitative researcher of Ping An Asset Management Co., LTD.2011-2015 quantitative strategy Analyst, allocation manager and principal of allocation room of Asset Management Center of Xintai Life Insurance Co., LTD. (started investing as allocation manager in 2012);2015-2020 senior manager of account management, China Pacific Life Insurance Co., LTD.Risk tip: the fund has risks, investment needs to be cautious.The information or opinions expressed in this material are for informational purposes only and do not constitute any investment advice.When purchasing a fund, investors should read the fund contract, recruitment prospectus, fund product profile and other legal documents in detail, fully understand the risk and return characteristics of the fund and product characteristics, and fully consider their own situation to choose products that match their risk tolerance.The Fund Manager undertakes to manage and use the Fund assets in good faith, diligence and due diligence, but does not guarantee that the Principal of the Fund will not be lost, the Fund will not make a certain profit, nor will it guarantee the minimum return.Fund products are subject to risk of return fluctuation. The past performance of the fund and its net value do not predict its future performance. The performance of other funds managed by the Fund manager and the past performance achieved by its investment manager do not predict its future performance, nor do they constitute a guarantee of the fund performance.China’s fund operation time is short, can not reflect the development of all stages of the stock market.The past performance of the industry and index does not represent the performance of the fund, nor does it serve as a commitment of the fund’s future performance.Siyin Robust Preferred 12 month holding Hybrid Launch (FOF) is a R3 risk grade product suitable for investors with c3-C5 risk grade.If the agency has its own assessment results and matching rules for the risk grade of the product and the risk tolerance of investors, the agency shall prevail.The Fund sets a 12-month holding period for each fund share.Prior to the expiration date of the 12-month holding period of fund shares (excluding the date), a fund share holder shall not apply for redemption or conversion of such fund shares;From the expiration date (inclusive) of the 12-month holding period of fund shares, fund share holders may apply for redemption or conversion of such fund shares.As a result, fund share holders are at risk of not being able to redeem their fund shares before the expiry of the 12-month holding period.