Changsheng North Certificate 50 Component Index Enhanced Annual Report Analysis: Class C Shares Surge by 921%, Management Fees Increase by 18 Times, Net Value Underperforms Benchmark by 9 Percentage Points

Key Financial Indicators: Net Asset Growth of 365% and Net Profit Turned Positive

In 2025, the Changsheng Beizheng 50 Component Index Enhanced Fund (hereinafter referred to as “Changsheng Beizheng 50”) achieved substantial growth, with net assets rising from 208 million yuan at the end of 2024 to 968 million yuan, an increase of 364.9%. The fund generated a net profit of 1.0242 million yuan for the year, reversing from a loss in the comparable period of the previous year (-1.8301 million yuan), showing significant improvement in profitability.

Net Value Performance: Underperformed Benchmark by 9 Percentage Points with Excess Tracking Error

During the reporting period, the net value growth rate for Class A shares was 26.17%, and for Class C shares it was 25.78%, both significantly lower than the performance benchmark return of 35.26%, resulting in negative excess returns of -9.09% and -9.48%, respectively. The average daily tracking deviation for the year was 0.2665%, with an annualized tracking error of 9.4289%, exceeding the contractual target of “annual tracking error not exceeding 8%”, primarily affected by the accumulation period.

Investment Strategy and Operations: Quantitative Model Dominates with Accumulation Period Disturbing Tracking Accuracy

The manager indicated that in 2025, a “multi-factor model + portfolio optimization” strategy was employed, using quantitative methods to control trading costs and tracking errors. However, due to certain periods in the reporting phase being in the accumulation stage, tracking errors were significantly higher than contractually agreed. The focus was on allocating to the Beizheng 50 constituent stocks while responding to subscription and redemption fluctuations through index replication and quantitative means.

Fee Analysis: Management Fees Surge 18 Times with Custody Fees Also Increasing

As the fund size expanded, expenses increased significantly. The management fee payable for the period was 593,500 yuan, up 1859.6% from the previous year’s 30,300 yuan; custody fees amounted to 74,200 yuan, an increase of 1860.5% from the previous year’s 3,800 yuan, with fee growth generally matching the asset size growth (364.9% increase).

Stock Investment: Beizheng 50 Constituents Account for 95.66% with Top Ten Holdings Concentration at 38%

At the end of the period, the market value of stock investments was 92.61 million yuan, accounting for 95.66% of the fund’s net asset value, all in Beizheng 50 constituent stocks. The total market value of the top ten holdings was 36.82 million yuan, representing 38.03% of the net asset value, with the largest holding being Betterray (920185) at 6.8735 million yuan, accounting for 7.10%. The industry allocation was primarily in manufacturing (82.64%) and information technology (11.10%).

Share Changes: Class C Shares Surge by 921% with Retail Investors Over 99%

During the reporting period, total fund subscriptions reached 5.251 billion shares and total redemptions were 4.644 billion shares, resulting in a net subscription of 607 million shares. Class C shares saw net subscriptions of 546 million shares, ending the period with 605 million shares, an increase of 921.45% from the beginning (59 million shares), primarily due to Class C having no subscription fees and charging a sales service fee (annual rate of 0.3%), significantly attracting retail investors. Among Class C holders, individuals accounted for 99.99%, while institutions only represented 0.01%.

Holder Structure: Institutions Hold Over 50% of Class A, Single Investor Approaches Warning Line

Among the Class A shares, institutional investors held 11.8458 million shares, accounting for 52.46%; individual investors held 10.7355 million shares, accounting for 47.54%. Notably, a single institutional investor held 11.8458 million shares of Class A, representing 14.25% of the fund’s total shares, nearing the 20% regulatory warning line, posing liquidity risk due to potential large redemptions.

Risk Alerts and Investment Opportunities

Risk Alerts

2. Excess Tracking Error Risk: The annualized tracking error is 9.43%, exceeding the contractual limit of 8%, requiring attention to error control effectiveness after the accumulation period ends.
3. Liquidity Risk: The retail investor proportion in Class C shares is extremely high (99.99%), and subscription and redemption fluctuations may exacerbate net value volatility; a single institution holding 14.25% of Class A may trigger liquidity shocks due to large redemptions.
4. Underperformance Risk Relative to Benchmark: The fund underperformed the benchmark by 9 percentage points for the year, and the effectiveness of the quantitative enhancement strategy remains to be validated.

Investment Opportunities

The manager looks forward to 2026, believing that the technology growth sector will shift from “technology going abroad” to “domestic applications,” and that cyclical sectors (non-ferrous metals, petroleum and petrochemicals, etc.) may benefit from policy stimulus. Specialized and innovative enterprises within the Beizheng 50 constituents may present structural opportunities.

Brokerage Trading Commissions: Caifeng Securities and Shouchuang Securities Capture 99% of Commissions

For the year, the fund’s stock trading commissions totaled 659,200 yuan, with Caifeng Securities (401,300 yuan, accounting for 52.86%) and Shouchuang Securities (357,900 yuan, accounting for 47.14%) being the main trading service providers, together accounting for 99%, while Dongfang Caifu Securities generated no trading commissions.

(Data Source: Changsheng Beizheng 50 Component Index Enhanced Open-End Securities Investment Fund 2025 Annual Report)

Statement: The market has risks, and investment requires caution. This article is automatically published by an AI model based on third-party databases and does not represent the views of Sina Finance. Any information contained in this article is for reference only and does not constitute personal investment advice. Please refer to actual announcements for discrepancies. For inquiries, please contact biz@staff.sina.com.cn.

A wealth of information and precise insights, all in the Sina Finance APP

Editor: Xiaolang Kuaibao