What is the fund with the hardest current market earning power? The answer is the steel fund.
Wind data shows that as of March 17, 2021, three steel funds all have the strongest increase in the net value of funds in the latest month. Penghua, Zhongrong and Cathay Pacific fund companies’ related steel funds have a return rate of 21.17%, 20.75% and 19.90% respectively in the latest month. At the same time, more than 1,000 funds lost more than 19% of their net worth in the latest month.
Brokerage Chinese reporters noticed that since march this year, including e, bo, China merchants, right away, when the central dense research of public funds, such as iron and steel stocks, some fund company within half a month, a researcher at the research three iron and steel company, some iron and steel stocks even even five research meeting in 11 days time, attracted more than 20 fund company coming.
“Iron Man” returns, dominates the fund performance C position
Steel, considered a traditional sunset industry, has been the strongest fund performer in recent times.
Wind data shows that as of March 17, 2021, three steel funds have the strongest fund net value in the latest month. Penghua CSI Iron & Steel Industry Fund, Zhongrong CSI Iron & Steel Fund and Cathay CSI Iron & Steel ETF have the returns of 21.17%, 20.75% and 19.90%, respectively, in the latest month.
The popularity of steel funds, may be based on retail public opinion is unexpected. Market personage believes that the flow of retail funds, often represents a fully explored by the market, the topic of the hot direction. Steel fund this relatively unpopular variety, in the end of 2020 A-share “baijiu theme fund” hot issuance background, by the retail redemption, to one of the steel fund, for example, the fund in the fourth quarter of last year was half of the retail redemption, the share of only 92 million.
Market participants speculated that retail investors who withdrew their money from steel funds in the fourth quarter of last year were likely to be involved in buying up the then new series of “baijiu” themed funds. But to the surprise of retail investors, in the latest month, steel fund yield hit “liquor fund”, the Penghua National Securities Steel Industry Index Fund in the latest month of return as high as 21.17%, even in the most recent year’s yield, Penghua National Securities Steel Industry Index Fund is also more than 53%. So far this year, the returns of the ZhongRong CSI Iron & Steel Fund and the Guotai CSI Iron & Steel ETF have also been the envy of many baijiu funds. According to Wind data, more than 1,000 funds lost more than 19% of their net worth in the latest month as of March 17, 2021, and the net worth of new funds managed by a number of star fund managers fell below RMB 1.
The trend of iron and steel funds, and the current funds of procyclical varieties of mining has a greater relationship, funds to avoid the direction of the hot theme to the institutions, therefore, relatively unpopular iron and steel stocks due to insufficient capital mining, re-become the object of fund managers’ attention.
Wind data also shows that steel prices have continued to rise due to strong demand and production curbs, with the steel industry index up 22% since February this year through March 17.
Entering March, the funds are more and more interested in the unpopular iron and steel stocks, and the pace of fund managers’ research is also accelerated. Minguang Sangang, CITIC Special Steel and Valin Iron and Steel are receiving the attention of the fund.
According to the information disclosed by CITIC Special Steel, on March 2nd, there were field surveys including Ceibs Fund, Bosch Fund, Bank of Communications Schroder Fund, Daceng Fund, Ruiyuan Fund, ICBC Credit Suisse, and Yifonda Fund. Valin Iron and Steel is also the focus of fund research, the company disclosed information, March 4, March 5, March 9, March 10, March 11 successively ushered in the fund manager’s field research. On March 4, Ruiyuan Fund and Galaxy Fund researched Valin Iron and Steel. On March 5, Ruiyuan Fund went to survey again, and Ceibs Fund also participated in the survey activities. In the following days, Wells Fargo Fund, South Fund, Agricultural Bank of China, Bosch Fund and others participated in the survey activities of the company.
It is worth mentioning that the above, including Rui Yuan Fund, Bo Fund and other fund companies in a month in a number of steel stocks in the field research information, showing that the fund manager did increase the attention to steel stocks.
Industrial Securities analysis pointed out that carbon peak, carbon neutral policy or have a far-reaching impact on the steel industry, the steel industry or face a new round of “supply side reform.” On the one hand, the steel industry will be accelerated to improve production processes, upgrade equipment and use low-carbon energy; On the other hand, steel enterprises are encouraged to take the initiative to innovate and develop deep decarbonization technology. In the wave of low-carbon transformation, small and medium-sized enterprises with high energy consumption and low efficiency will be eliminated, while large enterprises with strength will further enhance their market competitiveness through low-carbon innovation. Green enterprises can also make profits by selling carbon emission permits in the future, so leading enterprises with more environmental protection advantages and scale advantages may benefit further.