greysnowpoker| "Going to sea" investment has joys and sorrows, QDII funds are polarized

Since the beginning of this year, nearly 40 per cent of the net worth of QDII funds has withdrawn, and even 20 QDII funds have fallen by more than 20 per cent. In fact, most overseas equity markets have risen so far this year, and it is surprising that some QDII funds have underperformed. Observing the performance of the QDII fund, we can find that the products that vigorously allocate resource cycle stocks are in the forefront of the increase, and the products of the heavy technology track have quietly "given way".

QDII funds have gradually become one of the important ways for investors to "go to sea" to achieve global asset allocation, and most QDII funds focus on the United States and Hong Kong, China. A public offering person said that this year's loss-making QDII fund "Hong Kong stocks and Chinese stocks" is not low, the main layout of medicine and car racing track, as the relevant market risks are gradually released, the future is expected to excavate some overfallen deep value stocks and growth target opportunities.

Nearly 40% of QDII funds have lost money this year.

Since the beginning of this year, the proportion and extent of "money losses" of QDII funds have increased significantly compared with the same period last year, while the net worth of the products with the largest losses has withdrawn by nearly 30 per cent. As of April 24, 237 QDII funds (without accounting for A QDII C shares) had lost money, accounting for nearly 40 per cent, while 20 QDII funds were down more than 20 per cent, according to QDII data.

Specifically, the top three QDII funds so far this year are owned by a head public offering fund, managed by the same fund manager, and mainly distributed in the auto industry chain stocks of the Hong Kong stock, A-share and US stock markets in the first quarter. The names of other products at the top of the loss list include "Hang Seng", "biotechnology" and "medical". These QDII funds mainly cover the pharmaceutical track of the Hong Kong stock market.

In the same period in 2023, 220 QDII funds also suffered losses, but only 20 products fell by more than 10%. Most of these "poor" product names include "Internet", focusing on technology stocks in the Hong Kong and US stock markets, mainly in the Hong Kong stock market. Although the technology track in the US stock market continues to climb in 2023, the products that lost more in the same period last year did not "counterattack" but suffered more and more losses, with a number of products falling nearly 30 per cent for the whole of last year.

Public investors in East China said that the losses of QDII funds so far this year mainly came from the Hong Kong stock market, especially the continued decline in the pharmaceutical sector, mainly due to the dual impact of the decline in the performance of the industry as a whole and the uncertainty of industry expectations in the coming years. In the long run, the development of the pharmaceutical industry still has long-term potential. with the adjustment of policies and the improvement of the market environment, the pharmaceutical sector of the Hong Kong stock market is expected to gradually come out of the trough in the future. The performance of relevant QDII funds is expected to "lift all boats".

Resource cycle of high-performance fund layout

Since the beginning of this year, QDII funds with periodic varieties of resources have led the performance. Wind data show that as of April 24, 364 QDII funds have achieved positive returns this year, of which 42 products have a net growth rate of more than 10%. Behind the "excellent performance" is that fund managers have chosen resource cycle varieties such as heavy crude oil.

Specifically, Guangfa Dow Jones American Oil RMB managed by Yao Xi temporarily topped the list with an increase of more than 15%, followed by Yi Fangda crude Oil RMB, which Zhou Yu took the helm. At the same time, Warburg Standard & Poor's Oil and Gas RMB, Southern crude Oil and Nuoan Oil and Gas Energy ranked at the top of the list.

It is worth noting that the Dacheng Hong Kong stocks managed by Bo Yang have selected the precious metals and non-ferrous targets listed in the Hong Kong stock market, such as Zijin Mining and Zhaojin Mining. QDII funds, such as Castrol Gold, Huitian Gold and Precious Metals, and Nuoan Global Gold, which allocate resource cycles vigorously, are all up more than 10 per cent so far this year.

Bai Yang said in the first quarterly report of Dacheng Hong Kong stocks that the "dumbbell" investment strategy made a positive contribution in the first quarter. On the one hand, the defensive attribute of dividend assets was obvious during the market pullback, which played a role as the mainstay. Among them, the upstream resource companies with global pricing are particularly outstanding.GreysnowpokerOn the other hand, some high-quality growth stocks fell out of the obvious margin of safety. In Bo Yang's view, there is a good chance that the Hong Kong stock market and the US-listed stock market can make a difference in the rest of this year.

China Securities News reporter found that a number of QDII funds with heavy positions in Hong Kong stocks recently showed a strong pull, which is more consistent with the trend of Internet leaders such as Tencent Holdings. Some public offering people said that Internet leaders such as Tencent have the advantage of traffic, advertising and financial technology revenue is relatively stable, and the cash flow is good, similar to telecom operators, as the valuation is gradually attractive, as a defensive target will be sought after by QDII funds for a long time.

Liu Yan, chairman of Angel Asset, warned that QDII funds, which mainly invest in the US stock market, need to pay attention to the uncertainty of Fed policy expectations and the possible impact factors of the US election year.

Pay attention to the risk when investing in QDII products

The market had expected the Fed to cut interest rates several times this year and believed that "investing in US debt is a sure opportunity" in the process of the Fed's rate cut. But the wobble in Fed policy has dashed market expectations, and QDII debt-based products have generally performed unsatisfactorily so far this year. Specifically, as of April 24, 58 QDII debt bases had lost money, accounting for more than 70%, and 22 products had dropped more than 2%, of which the largest drop was 5%.Greysnowpoker.52%.

Yao Xusheng, wealth management partner of Paiping.com, said the weakness of QDII bond funds is due to the fact that long-term bond prices are affected by rising market interest rates on the one hand and exchange rate factors on the other.

Yao Xusheng further said that when buying QDII funds, investors first apply in RMB, and fund companies use their foreign exchange quota to convert RMB into foreign currency for investment; when investors redeem the fund, fund companies convert it into RMB at the exchange rate at that time. Therefore, the change of exchange rate will have a certain impact on the actual performance of QDII funds. It is suggested that when choosing funds, investors should take the exchange rate issue into full consideration. The longer the investment cycle, the greater the impact of exchange rate fluctuations on the final performance of products.

Liu Yan suggested that overseas markets such as US stocks have accumulated large gains in the past year or two, the market is obviously overbought, and certain risks have been accumulated in the short and medium term, and investors investing in QDII products need to be vigilant. In addition, overseas investment should pay more attention to exchange rate risk, geo-situation risk, various transaction settlement risk and market liquidity risk.