This article**: Times Weekly Author: Shi Hao.
In the past 2023, the domestic equity investment market will be sluggish, and the net value of public offerings will fall more than they will rise.
However, there are always a small number of ** managers, not only withstanding the big fall, but even bucking the trend to achieve profits, among them, Invesco Great Wall Bao Wuke, is such a "minority" ** manager.
Representative products have been profitable for five consecutive years.
Invesco Great Wall Abalone is currently under management **8 (Class A and C combined), with a total scale of 1855.6 billion yuan, excluding the new issuance in 2023**, in the face of the general loss of equity investment in the past year, as of the end of 2023, the products with a management period of more than one year have achieved at least 13% performance growth throughout the year, and all of the same kind are at the forefront of the industry.
In addition, Bao has no management period of the longest**, Invesco Great Wall Energy Infrastructure Blend and Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select**, which have achieved positive growth in each of the past five years.
Compared with the star managers sought after by the market earlier, Bao Wuke's product performance is not conspicuous in the bull market. Since being promoted to ** manager in June 2014, Bao Wuke has served for nearly 10 years. But before 2022, Bao Wuwu did not often appear in the data lists of various ** rankings.
Judging from the performance of the past five years, from 2019 to 2021, when the market was hot, the product performance of Bao Wuke's management was not outstanding among many ** managers.
Among them, in 2019 and 2020, Bao Wuwu managed Invesco Great Wall Energy Infrastructure Hybrid, and the current annual results were respectively. 08%, correspondingly, the average income of the same kind of ** reached respectively. 64%；Even with the CSI 300 (up in the same period. 21%), Invesco Great Wall Energy Infrastructure's hybrid performance growth is also significantly lower than the former. Another product, Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select**, although the return has been slightly higher in the past two years, both have achieved a growth of about 20%, but there is still a big gap compared with the average return of the same kind **.
In 2021, the performance of Bao Wuke's products is still not impressive, except for Invesco Great Wall Energy Infrastructure Mix, which outperformed the average of its peers by 10 percentage points with a growth of more than 18%, and the rest of the ** are mostly at the average level of revenue of the same category.
The real embodiment of Bao's ability to invest is after 2022. In the face of the loss of the majority of the equity class for two years, Bao Wuwu has no management of ** all bucked the trend to achieve profitability, taking Invesco Great Wall Energy Infrastructure Mix as an example, the net value of the ** unit in two years has been since 18 to 21 or so, what is even more rare is that on a quarterly basis, except for a small loss in the first quarter of 2022 and the fourth quarter of 2023. 10% outside (similar **same period**.)49%), and the remaining months were profitable.
In terms of product scale, as of the end of 2023, the total scale under management of Bao Ke has exceeded 18.5 billion yuan, and the scale has increased by nearly 10 billion yuan in one year under the background of the general redemption of equity **.
Stick to low valuation values.
Looking at Bao Wuke's investment performance in the past two years, the heavy energy stocks are an important factor driving the growth of product performance. Taking Invesco Great Wall Energy Infrastructure Hybrid as an example, in the first quarter of 2022, the top 10 heavy stocks were China Mobile, Phoenix Media, Sichuan Investment Energy, Zhongnan Media, Mindray Medical, Huaneng Hydropower, Guangdong Expressway A, Chifeng**, Yonfer, and Jinyu Medical (accounting for a total of 44 net assetsAs of the end of the fourth quarter of 2023, the top ten heavy stocks have become Zijin Mining, Huaneng Hydropower, Sichuan Investment Energy, Tongling Nonferrous Metals, Jiuli Special Materials, Guangxin Shares, Shaanxi Coal, Shanmei International, Shenhuo Shares, Lu'an Environmental Energy (accounting for a total of 48 net value84%）。
Compared with Wanjia Huanghai, which also has a heavy position in coal and obtains high returns, Bao Wuke attaches more importance to the margin of safety and valuation level in his position. Among them, Invesco Great Wall Energy Infrastructure Mix, which had a heavy position earlier, Shanmei International, rose by more than 30% in the first three quarters of 2023, and in the fourth quarter of the year, Bao Wuke increased the number of shares held by related companies from 1758 in the previous quarter920,000 shares were significantly reduced to 964370,000 shares, the new heavy stock Shaanxi Coal Industry, the overall increase in the first three quarters was less than 10%, and from the fourth quarter of 2023 to the end of January 2024, the cumulative increase of Shaanxi Coal Industry has exceeded 20%.
In view of the fact that energy stocks have been in a high boom for two consecutive years, Invesco Great Wall Energy Infrastructure has achieved mixed years respectively. 94% growth, ranking 39th and 38th in the same category. In terms of product scale, the ** has been since the end of 2021 108.2 billion yuan is also growing rapidly, and by the end of 2023, its combined share of Class A and C will reach 246.9 billion copies, corresponding to a scale of more than 5.3 billion yuan.
Similarly, in Bao Wuke's other Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select** with a long management period, under the premise of taking the Hong Kong ** market as an important investment direction, at the end of 2023, Bao Wuke significantly increased China Mobile (587. since the third quarter of 2023).500,000 shares** to 345600,000 shares).
In the past, Bao Wuke prefers to enter the market at a relatively low point of the stock price of listed companies in actual investment, and reduces his position when it rises more than a certain amount to maintain profits. He believes that the most important thing in value investing is the margin of safety. The margin of safety depends on two things, one is that the barriers must be high, and the valuation must not be too expensive, otherwise the implied risk is large. When it comes to stock selection strategies, Bao Wuke said that high barriers are more important than low valuations, which means that companies can digest valuations over time.
As a growth** manager who favors low valuations, Bao Wuke has made money in the past two years when the overall market performance was poor, but in the three years from 2019 to 2021, he also missed the explosive growth opportunities in the pharmaceutical and new energy industries. In this regard, Bao Wuke said frankly earlier that the concept of value investment is not effective every year, but for him, the track is ineffective in the long run, and he will still insist on choosing low-valuation companies with better business models and strong operating barriers.
It should be pointed out that although the comprehensive turnover rate of each product managed by Bao Wuwu is not high, about 1 times for a long time, from the perspective of 2023, he will also begin to follow the market for short-term layout adjustment. Although there are no technology companies in the list of heavy stocks, in the second quarter report of Invesco Great Wall Energy Infrastructure Hybrid and Invesco Great Wall Shanghai-Hong Kong-Shenzhen Select**, it is mentioned that "benefiting from the popularity of AI, some of the holdings of this ** have been significantly ** in the second quarter**, the valuation level has also increased, the margin of safety has decreased, and we have taken profits at a higher position".
It can be seen that compared with traditional value investment, from 2023 onwards, Bao Wuwu will not only blindly choose low valuation**, but will also participate in market hot investments in a timely manner.
For the expectations of the market in 2024, Invesco Great Wall told the Times Weekly reporter that Bao Wuke believes that the current valuation of the A** field is quite differentiated, and the ROE level of the CSI 300 is higher than that of the ChiNext Composite Index, but its PB level is only about 40% of the ChiNext Composite Index. China is currently in the early stage of the transition from traditional energy to renewable energy, and the investment in traditional energy will be insufficient, which means that the new ** in this field will be limited.