According to the Smart Finance APP, Ruo Yuan Wen Jin configuration, managed by Rao Gang and Hou Zhenxin, disclosed its second-quarter report on a two-year hold. The fund lowered its positions in stocks and bonds in the second quarter. The position of stocks decreased from 30.66% in the first quarter to 28.98% at the end of the second quarter, and the position of bonds decreased from 67.61% to 66.13%. Regarding the adjustment of the positions of stocks and bonds, the quarterly report mentioned that the overall adjustment of the fund in the second quarter was relatively small, and in terms of equity assets, it further focused on core targets with relatively high certainty.

Specifically, in terms of changes in positions, compared with the first quarter of 2024, the top ten heavy-weighted stocks increased their holdings of Tonly Electronics (688210.SH) and Contemporary Amperex Technology (300750.SZ), and reduced their holdings in China Mobile (00941), Sieyuan Electric (002028.SZ), Zhejiang Weiming Environment Protection (603568.SH), Industrial and Commercial Bank of China (01398), etc.

Regarding the adjustment of the positions of stocks and bonds, the quarterly report mentioned that the overall adjustment of the fund in the second quarter was relatively small, and in terms of equity assets, it further focused on core targets with relatively high certainty. As for convertible bonds, some financial convertible bonds gradually approached the conversion conditions with the rise of the underlying stocks, and were sold to achieve good returns. Therefore, the position of convertible bonds in this quarter was slightly lower than that in the previous quarter.

From the perspective of the fund's performance, as of the end of the reporting period, the net asset value per share of Ruo Yuan Wen Jin configuration two-year holding mixed type A share was 0.9969 yuan. During this reporting period, the net asset value per share of the fund increased by 4.66%, and the rate of return compared with the benchmark over the same period was 1.30%. As of the end of the reporting period, the net asset value per share of Ruo Yuan Wen Jin configuration two-year holding mixed type C share was 0.9892 yuan. During this reporting period, the net asset value per share of the fund increased by 4.58%, and the rate of return compared with the benchmark over the same period was 1.30%.

In the second quarter of 2024, Rao Gang mentioned that the overall economic operation was relatively stable. From the perspective of demand, it basically continued the characteristics of the first quarter: overall export demand was more resilient than domestic demand, and the fluctuation of global manufacturing PMI rebounded, coupled with the end of the overseas inventory digestion cycle, which formed a supporting force for export demand. At the same time, China’s low-cost advantages in the manufacturing industry are increasingly reflected in more areas.

In terms of domestic demand, the overall trend of real estate demand remained weak, but with the further increase in policy support and the rapid decline in the base, the year-on-year decline in real estate sales has narrowed, and the pace and strength of the policy thinking on real estate destocking will be an important observation point for the stability of the real estate prosperity. Consumption continued to show the structural characteristics of service consumption that were stronger than material consumption, and the overall consumption momentum was still not strong.

From the investment perspective, the growth rate of infrastructure has slowed down, real estate investment remains low, and manufacturing investment is the only highlight under the impact of the gradual emergence of large-scale equipment renewal and reconstruction policies and external demand. In terms of market performance, resource products and "high dividend" assets continued to maintain a relatively advantageous trend, among which banks, utilities, electronics, coal, and transportation accounted for the top five of the primary industry increase.

In terms of asset allocation, under the situation where the volatility of stocks and bonds in the second quarter was narrower than that in the first quarter, the overall adjustment of the fund was relatively small. One aspect of the adjustment of equity assets was to appropriately increase the concentration of holdings on core targets with relatively high certainty, so as to further focus on them. The other aspect was to continue the operation of the first quarter and rebalance the holdings structure of some stocks with large price changes according to the expected rate of return level. As for convertible bonds, the fund still mainly holds undervalued convertible bond varieties, such as convertible bonds of financial companies with higher pure debt yields and more adequate valuation protection. They were relatively less affected by the phased impact brought by the transformation of market style. Some financial convertible bonds that have been held for a long time have gradually approached the conversion conditions with the rise of the underlying stocks, and the fund has reduced its holdings of them to achieve good returns, so the position of convertible bonds in this quarter is slightly lower than that in the previous quarter.

Rao Gang mentioned that considering that the issuance of deficit bonds in the budget is expected to accelerate, and the central bank is concerned about the risks of long-term interest rates, the fund moderately reduced the leverage and duration of bond assets in the second quarter. Currently, the real interest rate in China is still at a relatively high level, and inflation does not constitute a constraint on monetary policy. In the medium and long term, bond assets still have good allocation value.

According to Rao Gang, after experiencing the rapid changes in the internal and external environment in the past few years, the market has increasingly priced risks explicitly, which has been reflected in the relative valuations between stocks and bonds and the valuation differences among different sectors within stocks. Some high-quality leading enterprises have already demonstrated their ability to quickly adjust, adapt and continuously evolve under macro pressure with actual actions in the past two years. Moreover, their expected return on investment after risk adjustment has become attractive enough, which has strengthened their confidence and patience in holding.