Abstract: how to be steady without losing positivity

The A-share market has gradually picked up this year, investor sentiment has become positive and optimistic, and capital flows have also changed. Data show that northward funds have been buying heavily so far this year, with net purchases reaching 141.29 billion yuan in 16 trading days in January, an all-time high in a single month.

In such a market environment, some people actively adjust their investment posture and actively increase their positions, while others are cautious while seizing the opportunity, selecting flexible configuration funds with medium-to-upper equity positions, products that can really show "flexibility". For example, Guangfa growth Optimization, in 2022 when stocks and bonds fluctuated, the average return of the same flexible configuration fund (benchmark stock ratio 30%, 60%) was-14.37%, and the average maximum pullback was more than 20%. The fund ranks in the top 5% of the same category with an annual return of 3.20% (15exp 451), with an annual maximum pullback of only 6.5%, demonstrating a good anti-downtrend feature (data source: Galaxy Securities).

Fig. 1 net worth trend chart of Guangfa growth selection in 2022

Against the rising trend of Guangfa growth preferred over the past year is how to allocate assets? What directions will we pay attention to in the new year? This is a key topic that investors are concerned about.

Below, combined with the periodic report of the product in 2022, we make a brief analysis of the position operation of the fund.

On the position, except for the low position operation in the first quarter, the fund maintained more than 30% of its position in the other three quarters, and showed a trend of gradually increasing its position. By the four Seasons report, the fund's equity position had reached nearly 50%. This reflects the characteristics of fund managers' infrequent timing, and there is no significant reduction in positions even in the third quarter of the shock decline. Judging from the results, in 2022, when the CSI 300 index fell by more than 21%, the preferred net value fluctuation and maximum pullback of GF growth were controlled within 7%.

Combined with the operation analysis in the quarterly report, in the second and third quarterly reports, the fund has the expression that "while controlling the portfolio risk, we should make great efforts to grasp the low-price buying opportunities of high-quality assets". When it comes to the four Seasons, the expression shows a more positive intention. The stock position of the combined portfolio has increased to nearly 50%, which shows that the product has increased its risk exposure since the fourth quarter, actively grasping the "spring" market of the stock.

Figure 2: Guangfa growth selection report on asset allocation for each quarter in 2022

In terms of industry allocation, the fund embodies the characteristics of balanced dispersion. Combined with the analysis of portfolio positions and the operation of fund managers, the product focuses on three types of opportunities:

1. The target of solid fundamentals and long-term prosperity is expected to be sustained.
The fund added targets with solid fundamentals and medium-and long-term prosperity in the food and beverage, medicine, new energy, chemical, computer, and media industries where the valuation was lower in the second quarter, and in the following third and fourth quarters, some of the targets were adjusted according to the performance-to-price ratio.

two。 High-quality enterprises that are undervalued or reasonably valued in traditional industries that are closely related to changes in economic growth.
In the second and third quarters, products focus on traditional industries that are closely related to changes in economic growth, focusing on finding targets with strong competitiveness, performance growth rates that can continue to exceed industry growth rates, reasonable valuations or over-pessimistic expectations given by the market.

3. The target of both competitiveness and good valuation in the growth industry represented by new energy.
In the four Seasons, in addition to the first two categories, fund managers also share their allocation preferences in the growth industry. It said that it pays more attention to the changes in competitiveness shown by enterprises in the process of gradual maturity of the industry, and gives priority to allocation in the light of valuation.

From the perspective of individual stocks, the top ten major positions in the three quarterly reports of the Fund have good continuity and have not changed much. For example, among the top 10 stocks in the four Seasons report, eight only continue the configuration of the three quarterly reports, and the other two are also old faces who have appeared in the top ten positions in the second quarterly report. It can be seen that fund managers have a relatively long-term relationship in the choice of individual stocks.

In the turbulent 2022, Guangfa growth preferred by virtue of low volatility and pullback, rising performance against the trend has been recognized by investors, the scale also showed an obvious growth trend in the second half of 2022.

It is reported that Yao Qiu, the current fund manager of Guangfa growth Optimization, has nearly nine years of experience in public investment. China Merchants once evaluated him as a generalist in asset allocation who strictly controls risks, and is good at measuring the risk-return performance-price ratio of all kinds of assets from a macro point of view. to allocate large types of assets. Its investment aims at medium-and long-term sound returns and strictly controls the total risk exposure of the investment portfolio.

Investors who want to actively seize the rights and interests opportunities in 2023 might as well pay attention to Guangfa growth selection (000214).