Restructuring of the valuation of the liquor sector Huaxia Consumer Leading Hybrid A fell 43% since its inception The scale of equity funds of Huaxia Fund declined in the first half of the year

Our reporter Wang Jinchen

Recently, the A-share food and beverage sector continued to fall, and liquor stocks also continued to fall
.
From the perspective of funds, since the beginning of this year, the performance of many liquor-related funds has retreated sharply, the highest even exceeded 40%, including the performance of the Huaxia China Securities Subdivision Food and Beverage Theme Fund under Huaxia Fund, which has suffered a large loss, as of October 25, the fund has lost 28.
12%
this year.

It is understood that the CSI liquor index rose by 92% in 2019 and again by 120%
in 2020.
The liquor sector has risen sharply, so it has won the favor of funds, but since the beginning of 2021, the liquor sector has fallen all the way, and the valuation has continued to fall, but as the funds continue to withdraw, the reporter found that some public funds still hold a large number of shares in the liquor sector, so are the performance of these funds okay?

Huaxia Fund holds liquor stocks in groups

Huaxia CSI subdivided food and beverage industry fell by more than 28.
12%

Recently, a securities firm released a research report on the food and beverage industry, showing that the annual performance of the liquor sector may continue to diverge.

The peak consumption season of Mid-Autumn Festival and National Day was affected by the spread of the epidemic, and the recovery of consumption scenes such as banquets and dinners was delayed, but the consumer demand for high-end famous wines was still strong
.
Under the disturbance of the epidemic in the first half of the year, the pressure on the capital flow of distributors was greater, but the payment collection progress of high-end and some sub-high-end wine companies was relatively ahead
.

Although the performance of the liquor sector has diverged, in recent times, the overall performance of the consumption track has been sluggish, and the liquor sector has also fallen
sharply.
The reporter found that affected by this, the net value of Huaxia China Securities Subdivision Food and Beverage Industry Theme Exchange-traded Open-end Index Securities Investment Fund (referred to as: Huaxia China Securities Subdivision Food and Beverage Industry Theme ETF, code 515170) also retreated
sharply.

(Screenshot from Tiantian Fund as of October 24, 2022)

According to Tiantian Fund Network, the Huaxia CSI Subdivision Food and Beverage Industry Theme ETF was established on December 30, 2020, and as of June 30, 2022, the fund size was 4.
302 billion yuan
.
The latest net value as of October 24 was 0.
6323
.
Since its inception, the fund has returned -36.
77%, -28.
12% this year, -12% in the last January, -19.
16% in the last March, and -26.
16%
in the last 1 year.

It is understood that the fund manager of the Huaxia CSI Subdivision Food and Beverage Industry Theme ETF is Xu Meng
.
Xu Meng has managed the fund since December 8, 2020, with a return of -36.
77%
during his tenure.
In this regard, industry insiders said that although this type of fund is an index product, this kind of product is a passive transaction, but since its inception, it has been losing money, which naturally makes it difficult for the basic people to accept
.

(Screenshot from Tiantian Fund Network)

From the top ten heavy stocks of the Huaxia CSI subdivision food and beverage industry theme ETF fund, the holdings in the first three quarters of this year are liquor stocks, industry insiders said that it is precisely because of the large proportion of liquor stocks held by the fund, and the recent sharp retreat of the liquor sector, resulting in a further decline
in the fund's yield.
In recent years, due to the repeated speculation of the liquor sector by the market, there is a certain deviation between the valuation of some varieties and the price, and their valuation needs to be repaired
.

(Screenshot from Tiantian Fund Network as of October 24)

Fund manager Xu Meng graduated from Tsinghua University with a master's degree in engineering, was an assistant researcher of Fortune Securities, and was a former researcher of Zhongguancun Securities, and joined Huaxia Fund Management Co.
, Ltd.
in February 2006.

From the perspective of the types of funds managed by Xu Meng, the funds managed by Xu Meng are all ETF-type products, but the performance in the past year has not been satisfactory, all Xu Meng's funds have lost money in the past year, Huaxia Hang Seng Internet Technology ETF (QDII) lost 55.
64%, and Huaxia Hang Seng Internet Technology ETF Connection (QDII) A lost 53.
05%.

(Screenshot from Tiantian Fund Network as of October 10)

In addition to Xu Meng, Huaxia Fund Manager Ji Xinxing joined Shenwan Lingxin Fund Management Co.
, Ltd.
in 2009 and has served as an industry researcher and fund manager assistant
.
He joined Huaxia Fund in 2020, with current fund assets of 23.
947 billion yuan, and the best fund return during his tenure of 163.
49%, however, the performance of Nova in the past quarter this year is not satisfactory, 8 products are loss, and the loss of Huaxia domestic demand-driven hybrid A/C is close to 30%.

(Screenshot from Tiantian Fund Network)

For the Huaxia Domestic Demand-driven Hybrid Fund, not only has it lost 30% this year, but in fact, the fund has been in a state of loss since its inception, with a loss of 39.
94%
as of October 24.
In addition, the reporter looked through the positions of 8 products, most of which are stocks such as Ningde era, Luzhou Laojiao, Biyin Leuven, Poly Development, Changchun high-tech and so on, but in recent years, the A-share structural market has continued to deduce, the fund heavy stocks have dived in turn, and the "huddle market" has continued to collapse
.

Taking the liquor sector as an example, since 2014, in this wave of institutional huddle liquor bull market, the performance improvement brought by the price increase has strengthened the institutional huddle, the money-making effect brought by the institutional huddle, which in turn strengthens the expectation of price increases, in this case, most of the liquor stocks rose more than 10 times, the industry price-earnings ratio was once pushed up to 60 times, and with the withdrawal of funds, some products of Huaxia Fund still hold a large number of liquor stocks, and losses are inevitable
.

In the first half of the year, the scale of equity and hybrid declined

Huaxia consumer leader Hybrid A fell 43% since its establishment

On August 1, CITIC Securities released a report on the half-year performance of Huaxia Fund in 2022, in the first half of the year, Huaxia Fund achieved operating income of 3.
633 billion yuan, net profit of 1.
058 billion yuan, and total comprehensive income of 1.
099 billion yuan
.

Compared with the same period last year, the two indicators of operating income and net profit decreased and increased
.
From the perspective of changes in the scale of management, the scale of assets under management of the parent company of Huaxia Fund further climbed to 1.
74 trillion yuan, a year-on-year increase of 8.
07%.

From the perspective of changes in the scale of management, at the end of the first half of 2022, the scale of assets under management of the parent company of Huaxia Fund further climbed to 1.
74 trillion yuan, compared with 1.
61 trillion yuan in the same period last year, a year-on-year increase of 8.
07%.

Specifically, the increase in the size of non-commodity funds mainly comes from the increase in the size of the
debt base.
As of the end of the first half of 2022, the total debt base of Huaxia Fund was 207.
223 billion yuan, an increase of 45.
978 billion yuan, or more than 28%,
from 161.
245 billion yuan at the end of 2021.

However, both equity funds and hybrid funds have declined
in size.
Among them, the scale of equity funds at the end of June 2022 was 243.
673 billion yuan, a decrease of 24.
503 billion yuan from 268.
176 billion yuan at the end of 2021, and the scale of hybrid funds was 194.
228 billion yuan, a decrease of 15.
219 billion yuan from 209.
447 billion yuan
previously.
However, on the whole, the ranking of non-commodity funds of Huaxia Fund in the industry has not changed
.

(Data from Tiantian Fund Network)

Although the performance and scale still maintain growth, the reporter found that last year in the top domestic fund companies, almost every fund company had fund managers fell from the altar, including Huaxia Fund is no exception, in addition to the above fund manager Ji Xinxing, Huaxia Fund is good at the consumer industry female player Huang Wenqian is also not performing well, the net value of the 5 funds she manages has fallen by more than 20% this year, and the Huaxia consumer leader mixed A/C has fallen by 30.
61% and 30.
90%.

For Huang Wenqian, who has a research background in the home appliance industry, the consumer sector can be said to be one of the sectors that she
is extremely good at.
Huang Wenqian prefers leaders when selecting stocks, attaches importance to the expectations and quality of enterprises, and selects stocks
from four dimensions: industry space and growth rate, business model, competition pattern, and corporate governance.
For example, Huaxia Consumption Upgrade Flexible Allocation A/C also increased by 44.
38% and 71.
94% in 2019 and 2020 respectively, which are in the top 20% of similar funds
.

(Data from Tiantian Fund Network as of October 24)

However, the reporter found that among the products managed by Huang Wenqian, the Huaxia Consumer Leading Hybrid Fund has fallen the most
.
It is understood that Huaxia Consumer Leading Hybrid A was established on February 3, 2021, and on December 31, 2021, the fund size was 2.
022 billion yuan, however, after three quarters of operation, as of October 24, the fund was 1.
412 billion yuan
.
The return this year is -30.
61%, the return in the last January is -8.
57%, the return in the last March is -16.
01%, and the return in the past 1 year is -30.
61%, the fund ranks in the same category 2030/2342
.
As of October 24, the net value of Huaxia Consumer Leader Mix A was 0.
5699
.

(Data from Tiantian Fund Network)

The reporter looked through the position records of Huaxia consumer leader Mixed A, from the fourth quarter of last year to the third quarter of this year, too heavy holdings of liquor stocks have become the key
to the problem.
At the same time, it can be seen from the 2022 third quarterly report that the fund is still heavily invested in liquor stocks, and once the next liquor stocks still fail to stabilize and rebound, the fund's performance is still not optimistic
.

Responsible Editor: Zhao Yu Review: Peng Zonglu