Ruiyuan Funds recently disclosed its fourth-quarter 2025 reports. During Q4 2025, the Ruiyuan Growth Value Mixed Fund, managed by Fu Pengbo and Zhu Lin, increased its position in Cambricon (688256.SH), while it reduced holdings in stocks such as Eoptolink (300502.SZ), Alibaba-W (09988), and Suzhou Dongshan Precision Manufacturing (002384.SZ). A notable change in the top ten holdings was the absence of mobile telecommunications stocks, which were replaced by top-performing photovoltaic and advanced semiconductor equipment manufacturers from the quarter; the absolute share counts of other key companies saw both increases and decreases. The quarterly report indicated that in Q1 2026, the Ruiyuan Growth Value Mixed Fund will aim to minimize investment uncertainty while building on its allocations in prominent sectors and individual stocks.
In terms of performance, as of the reporting period end, the net asset value per unit for the Ruiyuan Growth Value Mixed A Fund was RMB 1.9685. During the reporting period, the fund's net asset value per unit grew by 0.57%, compared to its benchmark's return of -1.37%. The net asset value per unit for the Ruiyuan Growth Value Mixed C Fund was RMB 1.9159, with a growth rate of 0.47% against the same benchmark return of -1.37%. Fu Pengbo and Zhu Lin stated in the report that they prepared for the 2026 portfolio construction: on one hand, they reduced holdings in companies with weaker fundamental trends to lessen potential negative impacts on the fund's net value; on the other hand, they increased exposure to companies related to data center liquid cooling, storage capacity, and computing power, based primarily on industry development trends and follow-up research on individual stocks.
They remain optimistic about the future development of sectors and stocks they focused on in the previous year, such as optical modules, PCB materials, chips, and data center liquid cooling, and plan to intensify research efforts in these areas during 2026. The Ruiyuan Balanced Value Three-Year Holding Mixed Fund, managed by another star fund manager at Ruiyuan, Zhao Feng, saw its equity allocation climb to the highest level in nearly three years. The fund repurchased Midea Group (000333.SZ), while CHINA RES MIXC (01209) and Gree Electric Appliances (000651.SZ) newly entered its top ten holdings.
Conversely, the fund reduced its position in Luxshare Precision (002475.SZ), while Alibaba-W (09988) and Focus Media (002027.SZ) exited the list of top ten heavyweight holdings. Regarding performance, the net asset value per unit for the Ruiyuan Balanced Value Three-Year Holding Mixed A Fund was RMB 1.7064, declining by 0.26% during the period against a benchmark return of -1.52%. The net asset value per unit for the C share class was RMB 1.6767, declining by 0.33% compared to the same benchmark.
Zhao Feng noted in the quarterly report that the macroeconomic cycle is shifting in a direction favorable for equity assets. With the continuous implementation of anti-involution measures, the Chinese economy is expected to gradually emerge from deflationary expectations, leading to a gradual improvement in corporate profit quality, with industry leaders possessing pricing power and cost-pass-through capabilities standing to benefit more. As capital market reforms continue and the environment for long-term capital entry gradually optimizes, the intrinsic stability of the market is strengthening. Against this backdrop, the fund will continue to focus on companies with solid fundamentals and deep competitive moats, aiming to capture excess returns through structural allocation.
Specifically regarding allocations, Zhao Feng is focusing on leading domestic companies undergoing rapid overseas expansion. He stated that he observes a cohort of domestic industry leaders accelerating their international development; these companies already match or exceed leading overseas counterparts in product quality, innovation, and price competitiveness, and are currently rapidly addressing shortcomings in service and distribution channels while continuously enhancing brand recognition. He anticipates that overseas revenue growth will become the primary driver of performance for these companies over the next five to ten years, delivering excellent returns to shareholders.
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