GF Fund's Six Products Report Over 400 Million Losses: Can It Turn the Tide This Year?

Against the backdrop of a recovering A-share market, actively managed equity funds have enjoyed a fruitful year, with 7,262 products averaging a 24.8% return rate and over 98% achieving positive yields. However, not all funds have thrived. GF Fund saw six of its products rank among the bottom seven performers in Q3: GF Value Advantage, GF Domestic Demand Growth A, GF Value Preferred A, GF Ruiming Two-Year Holding A, GF Steady Preferred Six-Month Holding A, and GF Balanced Preferred A. None met their benchmark levels, with all posting negative returns over the past year. GF Value Advantage was the worst performer, with a -15.38% return, lagging its benchmark by over 28 percentage points—earning it the title of "Q3's Worst Fund."

This year, market capital has flowed heavily into growth stocks, particularly in AI, biotech, and humanoid robotics. However, fund manager Wang Mingxu, overseeing these six underperforming funds, took a contrarian approach.

Wang Mingxu managed eight funds in Q3. Excluding GF Value Stable Growth A/C (launched less than a year ago) and GF Shengjin Hybrid A/C (co-managed with Duan Tao), the remaining six funds under his sole management suffered losses. GF Domestic Demand Growth A, managed since October 2018, fell 14.77% in the first three quarters of 2025, underperforming its benchmark by 24 percentage points. GF Value Preferred A, GF Ruiming Two-Year Holding A, GF Steady Preferred Six-Month Holding A, and GF Balanced Preferred A all saw declines exceeding 10%, trailing benchmarks by over 20 percentage points and ranking among the bottom performers.

In terms of losses, GF Value Advantage Hybrid led with a Q3 loss of 146 million yuan. Year-to-date, its net value dropped over 15%, consistently underperforming peers and the CSI 300 across all timeframes. GF Balanced Preferred Hybrid A followed with a -10.16% return and a 122 million yuan loss. Other funds under Wang also reported significant losses.

Wang attributed the underperformance to maintaining high equity exposure while missing growth-sector rallies. In Q3, he adjusted holdings by selling regional banks and increasing stakes in undervalued premium liquor stocks (e.g., Kweichow Moutai Co.,Ltd., Luzhou Laojiao Co.,Ltd., Shanxi Xinghuacun Fen Wine Factory Co.,Ltd., Wuliangye Yibin Co.,Ltd.) and software/IT firms. He also invested in Hong Kong-listed logistics companies benefiting from e-commerce growth.

Despite a 2.7% Q3 gain for Kweichow Moutai Co.,Ltd., its late-quarter pullback from highs likely hurt fund performance. Other liquor holdings mirrored this volatility.

Wang, previously a strategist at Dongxing Securities, now serves as GF Fund’s assistant general manager and investment head, overseeing 8.26 billion yuan in assets—down 2.5 billion yuan from Q2. While his GF Domestic Demand Growth A once delivered 117.74% returns, its recent losses highlight the risks of contrarian bets.

With two months left in 2025, questions remain: Will Wang pivot to growth sectors or stay the course?

GF Fund’s star manager Liu Geshan, known for tech and energy bets in 2019-2020, saw assets plummet 60% from their 84.4 billion yuan peak to 33.4 billion yuan by Q3 2025. His continued focus on struggling sectors like solar and batteries contributed to the decline. Meanwhile, Zheng Chengran, another prominent manager, saw assets shrink over 70% from their 48.3 billion yuan high due to similar missteps in新能源.

Despite challenges, GF Fund’s total AUM grew 6.2% to 1.54 trillion yuan in Q3, led by money-market (618.38 billion yuan) and bond funds (384.16 billion yuan). ETF products surged 46% to 278.92 billion yuan, ranking sixth among peers. However, mixed-asset funds lagged with 1-5 year returns below industry averages.

As performance diverges, investors are reminded that bull markets don’t guarantee gains—fund managers’ sector choices and adaptability matter more than past glories.