[Introduction] The second batch of CSI A500 Index Enhanced Funds was approved, and "the flowers fell" to 9 fund companies
China Fund News reporters Fang Li and Lu Huijing
CSI a500 index products have another big news!
On November 18, 9 funds including Guangfa, Fuguo, China Merchants, BlackRock , Bodao, China Europe, Changxin, Galaxy, Shenwan Lingxin The company's CSI A500 Index Enhanced Fund was officially approved. This is also the second batch of CSI A500 Index Enhanced Funds that came out after 's first batch of four CSI A500 Index Enhanced Funds were approved on October 18.
In addition, Penghua CSI A500 Index Fund also received approval on the same day.
Many industry insiders said that compared with other mainstream broad-based index , the CSI A500 Index has better industry allocation and broader market value coverage, which makes the CSI A500 Index Enhanced Fund more capable in pursuing excess returns. Certain advantages. It is expected that the second batch of CSI A500 Index Enhancement Fund will be launched soon.
9 CSI A500 Index Enhanced Funds Approved
On November 18, the second batch of 9 CSI A500 Index Enhanced Funds were officially approved, including GF, Wells Fargo, China Merchants, BlackRock, BoDao, CEIBS, and Changchun Investment Fund. Many fund companies including Xinxin, Galaxy, and Shenwanlingxin.
According to industry insiders, the second batch of CSI A500 Index Fund may not set a unified issuance limit. The fund company will arrange the issuance as soon as possible after receiving the approval.
According to BlackRock Fund , the Index Enhanced Fund combines passive investment and active investment, and strives to obtain returns that exceed index performance through active management strategies based on tracking a specific index. Its main income comes from two parts: one is the market return of tracking the index (beta return), and the other is the excess return (alpha return) obtained through active management strategies.
Compared with ordinary index funds that only need to consider the tracking error with index funds, index enhanced funds pay more attention to the differentiated characteristics of the index and the investment management capabilities of the fund manager.
In the opinion of a quantitative investment fund manager, unlike traditional broad-based indexes, the CSI a500 index covers a wider range of industries, can better reflect the current economic situation of China's upgrading, has both value and growth characteristics, and has broad and balanced coverage. Leading companies across the industry, this also provides a wealth of investment targets for enhanced funds tracking the index and helps diversify risks. In addition, due to the large number of constituent stocks of the CSI A500 Index and the wide distribution of industries, fund managers have greater flexibility and space when constructing index-enhanced portfolios, and can use a variety of investment strategies to pursue excess returns.
Yang Meng, director of quantitative investment at Bodao Fund, pointed out that both the CSI A500 Index and CSI 300 Index represent leading companies in the industry. Therefore, in terms of excess performance, the CSI A500 Index and the CSI 300 Index enhance the excess return characteristics of the fund. It will be closer.
She also mentioned that compared with other mainstream broad-based indexes, the CSI a500 industry concentration is lower and the industry distribution is more balanced. For example, more weights are allocated to industries such as electronics, power equipment, and new energy, which reduces the traditional Weighting of industries such as banking and non-banking. Therefore, she expects that the overall excess performance of the CSI A500 Index Enhanced Fund may be slightly better than other mainstream broad-based index enhanced funds.
Xu Youhua, deputy general manager of the Quantitative Investment Department of Wells Fargo Fund and senior quantitative fund manager , believes that the CSI A500 Index is a relatively neutral index in the industry. From a style perspective, it also means a relatively balanced style, with a proportion of growth stocks and value stocks. relatively balanced. Therefore, compared with some indexes with strong style bias, such as the GEM Index, which prefers to look for excess returns within growth stocks, the A500 Index has the opportunity to achieve excess returns on both growth and value stocks. The sources are more diverse.
Fund companies compete for the CSI A500 Index Enhanced Fund
As the first major broad-based index after the promulgation of the new "Nine National Regulations", the CSI A500 Index has attracted great attention from the market since its birth.Fund companies are not only actively deploying related ETFs and their feeder funds, but also ordinary index funds. Index-enhanced funds have also triggered the deployment of many companies.
In addition to the 9 approved index enhanced funds and the first batch of 4 index enhanced funds, wind data shows that there are currently 23 CSI a500 index enhanced funds in the declaration status.
It is worth noting that many fund companies have deployed multiple fund products that track the CSI A500 Index at the same time, such as GF, Wells Fargo, China Europe, China Merchants and other companies.
At present, the first batch of four CSI a500 enhanced index funds have all finalized their issuance periods. Among them, Huashang CSI A500 Enhanced Index Fund was the first to complete its fundraising and was established on November 1, with a final issuance size of 1.989 billion.
Many industry insiders said that compared with ETFs, which rely more on first-mover advantages, index-enhanced funds rely more on long-term performance to win. Each fund company competes to see who can produce long-term excess returns relative to the benchmark. At a time when ETF competition is becoming increasingly fierce, the layout of index-enhanced funds is also one of the ideas for the differentiated development of small and medium-sized fund companies.
"Some large and medium-sized fund companies that have not participated in the ETF business before will also actively participate in it and create an index product line with their own characteristics." An industry insider said that the CSI A500 Index Enhanced Fund has been favored by the market due to its unique market positioning. Highly concerned. Many fund companies are actively deploying CSI A500 index enhancement products, which also shows the market's confidence and expectations in such products.
Xu Youhua said that there are currently more than 10 approved CSI A500 Index Enhanced Funds, with a maximum product scale of 8 billion yuan, and new products may be reported in the future. Therefore, competition is quite fierce, both in terms of product quantity and overall scale. How much room for excess income does
have?
Many industry insiders predict that the intensity of competition in the CSI A500 Index will be similar to that of other mainstream broad-based index enhanced funds, and the expected excess return space is relatively close to that of the CSI 300 Index Enhanced Fund.
Shenwan Lingxin Fund Manager Yu Cheng said that there is a high probability that the CSI A500 Index Enhanced Fund will be in a moderately competitive situation. Since the CSI A500 Index has the characteristics of a large number of constituent stocks, wide liquidity coverage, and high institutional attention, this also means that this sample space is one of the more suitable targets for index growth strategies to obtain excess returns. .
, a person from the Quantitative Investment Department of Guangfa Fund, believes that the CSI A500 Index Enhanced Fund aims to track the CSI A500 Index and strive for returns that exceed the index through quantitative models and enhanced strategies. Fund managers usually combine the advantages of active and passive management and use quantitative strategies to "add" index investments, striving to obtain more excess returns with better risk control capabilities. In the future, as the market's understanding of such products gradually deepens, index-enhanced funds are expected to occupy a more important market position.
Regarding the operation of index-enhanced products, Xu Youhua said that from the perspective of managers, the scale of the product will have certain constraints on their choice of strategy. For example, products with a scale of tens of billions are subject to possible transaction cost impacts, turnover rate constraints, etc., and the strategy is more likely to incorporate some low-frequency fundamental signals, but this does not mean that excess returns will inevitably decrease. For example, in this year's market, the effectiveness of low-frequency fundamental factors is not weaker than that of high-frequency volume and price trading factors.
Xu Youhua believes that , for the entire market, the expansion of similar product scale has increased the possibility of homogeneity between different managers’ strategies, but in view of the fact that managers have been actively realizing the diversification and differences of strategies in recent years ization, we can see that there is still the possibility of tapping excess returns in the A-share market.
"Our experience is that market efficiency and the excess return opportunities hidden behind it are the basis for index enhancement of the overall vitality of such products. A-shares still have such soil. For managers, there is only continuous model iteration Only by updating our strategies can we have long-term vitality in this highly competitive market. This is also our long-term practical experience,” said Xu Youhua.
Editor: Captain
Review: Xu Wen
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