In order to meet the coming era of long-term capital investment such as personal pension, Tian Hong Fund, together with Huazheng Index, developed Tian Honghuazheng, Shenzhen, Hong Kong and Kong Long Long-term Competitiveness Index Fund (hereinafter referred to as "Long-term Competitiveness Index Fund") based on the concept of long-term value investment, which provides investors with extremely simplified medium-and long-term investment tools and helps customers solve the long-term capital investment problems including pension funds in one stop.
Index design idea: strive to improve long-term income and prevent the purchasing power of pension funds from shrinking.
The core goal of long-term capital investment such as pension funds is to pursue the purchasing power of pension reserves without shrinking, and then strive for the quality of life after retirement. According to the experience of mature financial markets, in the long run, the equity of leading companies in the industry is one of the assets with higher expected rate of return, so it has become a good choice for pension investment. The compilation scheme of long-term competitiveness index is actually "the passivity of active strategy", which is a visual stipulation of Tian Hong's investment philosophy of selecting high-quality leading stocks from the fundamentals and holding them for a long time.
There are two important innovations in the design of long-term competitiveness index:
First of all, the index adopts the strategy of industry optimization, and chooses the dominant industries with strong profitability, high growth and small income fluctuation in the market. Because in the medium and long term, with the change of economic development momentum in China, different industries are at different stages of development. It is also a relatively simple and scientific path to leave the development of the industry to the market to choose. The long-term competitiveness index will be adjusted every quarter according to scientific industry analysis rules, and industries and constituent stocks that are in line with economic development and capital market recognition will be included, so that customers' medium and long-term funds can keep up with the economic development speed of China, and investors do not need to make their own timing and industry rotation.
From the historical data, the proportion of financial real estate and traditional manufacturing industry in the long-term competitiveness index has been declining, while the proportion of consumption, medicine, TMT and other industries has been rising with the development of China's economy and the increase of the market value of related industries in the capital market. By the end of the third quarter of 20021,industries with long-term high competitiveness index were mainly concentrated in new economic industries such as comprehensive internet (20%), leading consumption (25%), medical service (1 1%) and new energy (9%), which was in line with the background of economic consumption upgrading and transformation and upgrading in China.
Second, in the selection of constituent stocks, try to choose the leading companies in various industries, and finally select 50 listed companies with strong competitiveness in various industries after multi-dimensional comprehensive consideration such as market value, industry status and financial data.
By the end of the third quarter of 200213, the top ten components of the long-term competitiveness index covered Tencent Holdings, Contemporary Ampo Technology Co., Ltd., Kweichow Moutai, Longji Shares, China Merchants Bank and other leading white horse stocks with high recognition, involving information technology, new energy, essential consumption, high-end manufacturing, finance and other core fields. Wind's latest data shows that the number of long-term competitiveness index constituent stocks only accounts for 1% of the whole market, but its market value accounts for 20% of the whole market. According to the 2020 annual report, the average compound annual growth rate of total operating income and net profit of the top ten constituent stocks of the index in recent five years is as high as 28.63% and 26.06%, and the average weighted return on equity (ROE) reaches 65,438+06.99%.
Index advantage: one-click layout leads the three places, sharing the economic growth dividend of China.
Long-term competitiveness index fund is the first product invested by leading enterprises in the whole market in Shanghai-Hong Kong-Shenzhen Stock Exchange at the same time, and its constituent stocks can fully reflect the growth momentum of China's economic development. Wind data shows that from 20 10 to 2020, the cumulative growth rate of China's GDP is 185%, while the cumulative growth rate of Shanghai and Shenzhen 300 index is only 46%, while the cumulative yield of long-term competitiveness index is 345%, and the annualized rate of return is as high as 13.93%.
Compared with the CSI active stock index, which represents the average performance level of active stock funds, the long-term competitiveness index has the same bright historical performance, showing good long-term profitability: higher annualized rate of return and lower annualized volatility. During the sideways volatility from 20 10 to 20 14, the long-term competitiveness index achieved an annualized rate of return of 3.54%, with an annualized volatility of 20.46%, and the "CSI Active Stock Base Index" achieved an annualized rate of return of 2. 16%, with an annualized volatility of 23%. However, in the period of rapid growth of equity category of 20 15-202 1, the long-term competitiveness index shows obvious excess returns compared with active equity funds. The long-term competitiveness index achieves an annualized rate of return of 18.47% and an annualized volatility of 20.3%, while the CSI Active Stock Base Index achieves an annualized rate of return of 14.88% and an annualized volatility of 22.45%.
Compared with the MSCIA50 index, which also pays attention to core assets, the long-term competitiveness index has two main differences: First, the investment scope of the long-term competitiveness index is wider, including leading companies listed in Hong Kong stocks, such as Tencent, Meituan and Nongfu Spring. Secondly, compared with the industry-neutral strategy adopted by MSCIA50 index, the long-term competitiveness index adopts the industry optimization strategy, and the industries holding stocks are more concentrated in industries such as consumption, science and technology, which represent the direction of China's economic development.
Both financial management and pension are suitable.
Over the years, the wealth effect of Public Offering of Fund in China has been remarkable, but the problem of "funds make money and citizens don't make money" is still grim. Limited professional knowledge and time and energy constitute the pain point that restricts individual investors from improving their income. At the same time, due to irrational behaviors such as "chasing up and killing down", the average holding period of investors is short, so they can't really enjoy the benefits of Public Offering of Fund.
After several years or even decades of long-term investment, index fund investment has the advantages of transparent investment rules and low rates, and it also saves the trouble of fund managers of active funds to choose or change. Of course, taking index funds as the target of medium and long-term investment, including pension investment, may also have the shortcomings of large fluctuations, so it is necessary to cooperate with fixed investment and quality customer companionship services.
Historically, the long-term competitiveness index shows the characteristics of upward fluctuation. Therefore, investors are advised to participate in the investment in the form of fixed fund investment, which not only ensures that the domestic water is not affected, but also disperses the buying cost and avoids buying at the high point of the market. For this reason, Tian Hong Fund has designed a pension calculator to help customers calculate the pension target that needs to be accumulated in the future and make a detailed fixed investment plan.
At present, Tian Hong Fund has established a perfect long-term fixed investment service system, communicated with customers in time under various market conditions, and enhanced investors' understanding of market conditions through regular product reports, position adjustment reports and market interpretation, so as to enhance users' fixed investment experience and help customers stick to fixed investment for a long time.
Tian Hong Fund currently serves more than 700 million individual customers. We will work together with our partner * * * to become the best index fund service provider in China, especially to bring more pension investors into the service scope of index funds, develop more index funds to serve pension customers and long-term investors, and strive to solve the pain points of customers' pension investment.
Brief introduction of the author
Zhu Haiyang, doctor of management, has been engaged in the pension industry for 20 years. He is currently the deputy general manager of Tian Hong Fund Management Co., Ltd., and concurrently serves as the director of China Social Insurance Society, the executive director of china association for labour studies, the deputy secretary-general of China Pension Finance 50 Forum, and the member of the pension professional Committee of China Insurance Asset Management Association. Adjunct professor of China University of Political Science and Law, associate researcher of School of Management, Zhejiang University, etc.