Li Bowen, the manager of China Life Security, has a keen market perception, independent judgment ability and determination not to be affected by short-term opportunities, and can wait patiently when the industry has not yet shown opportunities.
According to public information, Li Bowen has a master's degree in finance from Chinese Renmin University, and worked as a strategic researcher at Chinese Life Asset Management***China Jiuying Asset Management***. He joined China Life Security in January 2017 and successively served as a researcher and assistant manager, and became the manager of China Life Security with high dividends in August 2022.
In the context of changes in the industrial pattern, we will study the market fluctuation time to lengthen, weaken the impact of short-term timing and industry rotation, and improve our portfolio construction based on the medium and long-term industry allocation. Talking about the investment framework, Li Bowen told reporters that all industries in the market will be placed in the coordinate system where the vertical axis is the annualized rate of return of the industry and the horizontal axis is the annualized average volatility of the industry index, and the risk-free interest rate is set at the far left, and the valuation and other factors are taken into account to draw a curve, and the industry in the upper area of the curve is selected as much as possible when investing.
However, Li Bowen said that the above-mentioned investment framework is not applicable to all first-class products, and the investment framework needs to be fine-tuned in accordance with the specific requirements of the first-class contract.
*In terms of selection, according to Li Bowen, after repeated screening, ROE was determined to be the most important indicator for medium and long-term industry allocation. Moreover, this is also in line with the conventional economic logic, that is, the proportion of annual earnings generated by shareholders in the selected industry is positively and strongly correlated with the capital gains generated by the industry for investors in the secondary market. Although this rule does not necessarily apply to the short-term and each one, at least at the large configuration level, it forms a basic and universal formula for the construction of the combination.
Li Bowen further said that ROE is a slow variable, and the screening time is generally three years, five years or longer. The target thus selected can be held for a long time without systemic problems.
In the investment process, Li Bowen said that he would strive to find listed companies with sustained stability and high ROE levels, of course, there must be few such companies, and they need to be selected layer by layer. "The most perfect choice is a company with a high ROE or even a continuous ROE, and in practice, a medium level with a potential ROE that is expected to continue to improve, a moderately high and stable ROE but underpriced by the market is also an excellent investment option. Following such an investment framework, it is not necessarily possible to realize investment returns in the short term, he said: "High dividends** are certainly not all-weather investment products, and we cannot expect to invest in stable and profitable high-dividend companies to become 'sprinters', but in the long term, continuous investment in these high-quality targets is expected to achieve good results." ”
In his exchanges with reporters, Li Bowen talked more than once about medium and long-term investment allocation, and repeatedly emphasized the importance of top-down research. According to Li Bowen, his investment framework is different from other ** managers, the original investment framework was completed in 2018, and it was updated in 2020 and 2022.
Risk Warning: Investment is risky, please choose rationally**.