Recently, A-share sentiment has been positively boosted, starting a rebound. At the same time, index fund products are favored by investors for their advantages of low cost, transparent operation, and convenient investment. According to Wind statistics, in the first two months of this year, a total of 53 new passive index products (including passive index bond funds) were issued, accounting for nearly 40% of the total number of new development funds. In order to further meet the diversified needs of investors, institutions have deployed index products. Among them, BOC Fund officially issued a major product, BOC China Securities Central Enterprise Dividend 50 Index Fund (fund code: Class A 020251 Class C 020250) to capture investment opportunities for central enterprises and dividend strategies.
According to reports, the BOC China Securities Central Enterprise Dividend 50 Index Fund closely tracks the underlying index, the China Securities Central Enterprise Dividend 50 Index. While tracking the index, it strives to control the average daily tracking deviation between performance comparison benchmarks, and is committed to providing investors with richer indexed investment tools.
Unlike other broad-based indices, the underlying index, the China Securities Central Enterprise Dividend 50 Index, simultaneously focuses on central enterprises and dividend strategies, and strives to achieve an effect of 1+1 > 2. It is worth noting that in the current low interest rate environment, the central enterprise sector and dividend strategy both have prominent allocation values.
On the one hand, in the context of the proposed “valuation system with Chinese characteristics,” the high-quality assets of central enterprises are expected to be revalued, and as the reform progresses, central enterprises may be more motivated to formulate reasonable and continuous profit distribution policies and raise the level of dividends.
On the other hand, in a market that repeatedly fluctuated and bottomed out in 2023, the dividend strategy received a lot of attention and showed good defensive properties. Take the China Securities Dividend Index as an example. It bucked the trend and rose 0.89% in 2023, outperforming mainstream broad-based indices. At the same time, in the current situation where the main logic of market transactions is still vague, and industries with high growth and prosperity are relatively scarce, it is more difficult to use prosperity as an anchor to obtain excess profits, and dividend assets with steady profits and strong resistance to market fluctuations may continue to outperform. (Data source: Wind, statistical range 2023.1.1-2023.12.31)
The launch of products related to the China Securities Central Enterprise Dividend 50 Index is also in line with the major trend of China's economy's transformation to high-quality development. In particular, in the past two years, the investment value of central enterprises has continued to rise, and the role of central enterprises as ballast stones in the national economy and capital market has become more prominent.
Judging from the preparation plan, the China Securities Central Enterprise Dividend 50 Index uses the China Securities Full Index Index as a sample space. 50 listed company securities with high cash dividend ratios were selected from listed central enterprise companies under the State Council's State-owned Assets Administration Commission as an index sample to reflect the overall performance of securities of listed companies of central enterprises with high dividend ratios.
Looking at constituent stocks, they generally have characteristics such as outstanding profitability. In terms of industry distribution, constituent stocks mainly cover energy, raw materials, and utilities such as oil, gas, and petrochemicals. The upstream cycle accounts for a high share, and may perform better as the economy continues to improve. In terms of market capitalization distribution, the constituent stocks selected leading companies with high industry representation and large market capitalization capacity. Furthermore, the dividend rate of the China Securities Central Enterprise Dividend 50 Index has been around 4% in the past 12 months, which is higher than the dividend rate of mainstream broad-based indices such as the Shanghai Composite Index, the Shanghai and Shenzhen 300, and the Shanghai Stock Exchange 50 during the same period, showing the outstanding advantage of the level of dividends. (Data source: Wind, statistical range: 2023.3.5-2024.3.5)
In addition to being offensive, the China Securities Central Enterprise Dividend 50 Index also has defensive characteristics. According to Wind data, the biggest retracement level in the history of the China Securities Central Enterprise Dividend 50 Index has a clear advantage. The biggest retracement in the past five years was -21.96%, which is far lower than the -27.27%, -45.25%, and -45.41% retracement levels of mainstream broad-based indices such as the Shanghai Composite Index, the Shanghai and Shenzhen 300, and the Shanghai Stock Exchange 50 during the same period. (Data source: Wind, statistical range 2019.3.5-2023.3.5)
Currently, the BOC China Securities Central Enterprise Dividend 50 Index Fund is being issued, and fund manager Zhao Jianzhong is planning to take charge. Zhao Jianzhong has 17 years of experience in the securities industry and 9 years of fund management experience. It can be said that he is a “veteran of the field” with rich investment experience. He is particularly good at index management. He is good at closely tracking index targets through strict investment processes and risk management methods, and strives to create a good fund holding experience for investors.
Of course, the team behind it did a great job. The BOC Fund Quantification Team was established in 2009 and has rich experience in quantitative investment research. After years of accumulation, the team gradually formed a relatively complete index strategy system, covering fields such as index products, multi-factor model research, quantitative timing and industry allocation research.
riskstips：Funds are risky, and you need to be careful when investing. Fund managers manage and use fund assets in accordance with the principles of due diligence, honesty and credit, prudence, and diligence, but they do not guarantee that the fund will be profitable or that it will not guarantee minimum return. In a few extreme market situations, there is a risk of losing the entire principal amount of fund investment.The fund's past performance does not indicate its future performance, the performance of other funds managed by the fund manager does not guarantee the fund's performance, and the past performance of the underlying index tracked by an index fund does not indicate the future performance of the index fund.Investors are requested to carefully read documents such as fund contracts, recruitment brochures, product information summaries, etc., to understand the specific situation of the fund, determine whether the fund matches the investor's risk tolerance based on their own investment purpose, investment period, investment experience, asset status, etc., and complete the matching test between risk tolerance and product risk in accordance with the requirements of the sales organization.