A hybrid fund's staggering 11-fold quarterly surge has propelled AVIC Fund to surpass 60 billion CNY in assets under management (AUM). However, behind the impressive figures, key executives have been departing one after another.
Recently, renowned economist Deng Haiqing, a Ph.D. from Fudan University, resigned for "personal reasons," with his next destination confirmed to be Bank of China-backed CCB Fund.
Transitioning from sell-side chief to buy-side executive, Deng’s career shift failed to replicate his past success. Joining AVIC Fund in late 2020, he rose from Chief Investment Officer to Deputy General Manager but faced setbacks when managing his first fund. Co-managing the AVIC Mixed Reform Select Hybrid Fund with a rookie fund manager, Deng ended his tenure with a disappointing -12.9% return before stepping down.
Over the past two years, AVIC Fund has seen changes in key roles, including General Manager, Chief Compliance Officer, and CFO. Former General Manager Liu Jian was demoted before being appointed Co-Chairman, leaving the core leadership team with just three members. The Deputy General Manager and Chief Investment Officer positions remain vacant.
**1. Deputy GM & Chief Investment Officer Steps Down, Heads to CCB Fund** Deng Haiqing, a finance Ph.D. from Fudan University, previously worked in government and held senior roles at major brokerages, including CITIC Securities (600030.SH) as Chief Fixed Income Analyst and Ant Group as Deputy Head of Research.
He joined AVIC Fund as an independent director in July 2020, later becoming Chief Investment Officer and Deputy General Manager. However, his stint as a fund manager in 2023 ended poorly, with the AVIC Mixed Reform Select Hybrid Fund shrinking to a "mini-fund" status, posting a -12.9% return under his management.
Market speculation suggested his resignation could be due to poor performance, a shift to corporate management, or an impending exit. His next move—joining CCB Fund, a bank-affiliated firm with 136 billion CNY in AUM—marks a step up in platform size.
**2. Frequent Leadership Changes, Core Team Down to Three** AVIC Fund has experienced significant executive turnover, including departures of the Deputy General Manager, Chief Compliance Officer, and CFO. Former Deputy GM Wang Hua left in January 2024, while Liu Jian transitioned from General Manager to Chief Compliance Officer in July.
After a nine-month vacancy, former Deputy GM Pei Rongrong was promoted to General Manager in April 2024. The firm now operates with only three senior executives, leaving key roles unfilled.
**3. One Hybrid Fund Lifts AUM to 60 Billion CNY** AVIC Fund’s AUM surged to 60.27 billion CNY in Q3 2024, driven by explosive growth in its hybrid fund segment. The AVIC Opportunity Navigator Hybrid Fund, launched in August 2023, saw assets skyrocket 11-fold in Q3 to 13.23 billion CNY, propelling its manager, Han Hao, to become the firm’s sole "billion-CNY fund manager."
The fund’s strong performance was fueled by gains in AI computing stocks, including Shenzhen Envicool Technology (002837), Eoptolink Technology (300502), and Zhongji Innolight (300308).
Historically reliant on bond funds (80%+ of AUM), AVIC Fund’s hybrid segment has now balanced its portfolio, reducing bond exposure to 51%. However, sustaining this growth amid market volatility remains a challenge.
In October 2024, AVIC Fund began recruiting a Deputy General Manager for institutional sales, signaling ambitions beyond a single "hit product."
As a macro-focused economist, Deng Haiqing’s departure highlights a divergence between AVIC Fund’s market expansion strategy and his expertise—a common dynamic in asset management’s evolving talent landscape.
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