On August 19, corporate warning notifications showed that Boc International (China) Co.,Ltd. (hereinafter referred to as "BOC Securities", 601696.SH) issued an announcement that Liu Xianzheng was simultaneously appointed as fund manager for four products: BOC Securities CSI 500 ETF, BOC Securities ChiNext ETF, BOC Securities CSI A500 Index, and BOC Securities CSI 500 ETF Feeder Fund. On the same day, BOC Securities Yingrui Mixed Fund also appointed Luo Yu as co-managing fund manager.
After analysis, it was found that except for the BOC Securities CSI 500 ETF Feeder Fund, the other four funds previously operated under a "dual fund manager" configuration. The additional appointment of fund manager Liu Xianzheng now seems to point toward original fund manager Ji Wei. Before Liu Xianzheng's appointment, the four index funds managed by Ji Wei were all co-managed by him and another fund manager. Now, all four funds have transitioned to a "three-manager co-management" model, a rare "crowded" configuration that is typically interpreted in the industry as a signal for smooth transition before the departure of the original fund manager. This makes the future career path of veteran Ji Wei, who has 7.83 years of investment experience, appear quite awkward and uncertain.
Particularly noteworthy is that Liu Xianzheng alone "holds four positions," taking over all passive index products, while his past experience has no intersection with this field. The appointment announcement raises questions about whether BOC Securities has blurred understanding of fund managers' capability boundaries, or whether this is part of a larger strategic move regarding personnel changes.
The table shows BOC Securities' fund manager changes on August 19. Data Source: Corporate Warning Notifications
**The Cross-sector Dilemma of Passive Index Fund Managers**
Ji Wei worked at Huaan Fund from January 2012 to August 2016 as a fund manager, focusing on passive index equity fund management. From August 2016 to July 2019, he moved to Huian Fund, with management scope involving enhanced index equity funds, flexible allocation funds, and mixed bond funds (secondary). He joined BOC Securities in October 2019, further diversifying his management portfolio.
Despite moving between multiple fund companies and managing diverse fund types, a review of Ji Wei's past product performance reveals lackluster results. None of the four passive index equity funds he managed at Huaan Fund achieved positive returns. Notably, the Huaan ChiNext 50 ETF recorded a -7.87% loss during his one-year tenure, ranking second from last in the industry. Perhaps due to performance pressure, Ji Wei moved to Huian Fund in August 2016, where in addition to managing enhanced index equity funds, he added flexible allocation funds and mixed bond funds (secondary) to his portfolio.
This transition was short-lived. After just three years, he joined BOC Securities in October 2019. His first fund at BOC Securities was in a field he had never touched before - equity-focused mixed funds - the BOC Securities Xiangrui Mixed Fund. This "cross-sector" attempt yielded disappointing results, with the fund recording a -14.9% loss during his less than two-year management period. BOC Securities showed particular favor toward him, and in December 2022, Ji Wei was simultaneously appointed as fund manager for BOC Securities Ruiyi Mixed Fund and BOC Securities Anhong Bond Fund. This arrangement was puzzling, and the results confirmed market concerns. The BOC Securities Ruiyi Mixed Fund recorded a total return of -38.73% during his tenure, with dismal performance. The BOC Securities Anhong Bond Fund, a secondary mixed bond fund, also recorded a -2.98% negative return under his management, ranking 783rd out of 822 similar funds, nearly at the bottom.
All three funds that Ji Wei left at BOC Securities ended in losses without exception. As of now, Ji Wei still manages 4 funds (A and C shares combined), with a total management scale of 253 million yuan. Among them, the BOC Securities ChiNext ETF, which he has managed for over four years, recorded a return of -6.94%. The BOC Securities Yingrui Mixed Fund, an equity-debt mixed fund, has a total return approaching -10% during his tenure, ranking at the bottom among peers. Only two passive index equity funds achieved positive returns. Even after years of transitions, Ji Wei's relatively stable performance area may still be passive index funds, where his career began.
The table shows Ji Wei's past fund product returns and rankings. Data Source: iFinD
It's worth noting that as of August 19, all four funds under Ji Wei entered a "three fund manager co-management" model. This arrangement is relatively rare in the fund industry, not only increasing communication and decision-making costs but also diluting fund managers' responsibility attribution. Perhaps a reasonable explanation is to provide a "soft landing" for Ji Wei's eventual departure.
**Doubts About Liu Xianzheng's Appointment: A Setback Veteran Enters Unfamiliar Territory**
If Ji Wei's situation represents the helplessness of a "hero in decline," then successor Liu Xianzheng's appointment brings even greater mystery. The four passive index funds are now co-managed by Liu Xianzheng, yet his public resume shows he has never been involved in passive index fund management.
Data shows that Liu Xianzheng previously served as an industry researcher at Taiping Fund and senior equity investment manager at Centennial Insurance Asset Management Company. From November 2017 to April 2021, he worked at Nord Fund as a fund manager, joining BOC Securities in April 2021.
In September 2021, Liu Xianzheng took over BOC Securities Antai Bond from Wang Yuxi and Pu Yanjie. This secondary mixed bond fund recorded a total return of -6.51% from when he took over until his departure. In November 2021, BOC Securities created a new fund specifically for him - BOC Securities Domestic Demand Growth Mixed Fund. However, this equity-focused mixed fund, which carried high expectations, saw significant net value drawdowns under Liu Xianzheng's management for over a year, recording a -34.32% loss. BOC Securities had to appoint Liu Hang as co-manager in December 2022 to try to reverse the decline. In the same month, Liu Xianzheng was appointed as fund manager for BOC Securities Growth Navigator Mixed Fund, co-managing with Pu Yanjie. Again, during more than a year of tenure, Liu Xianzheng suffered another setback in equity-focused mixed funds, with a total return of -27.35% during his tenure. Finally, on March 7, 2024, the fund's net asset value triggered liquidation conditions after falling below 50 million yuan for 50 consecutive working days, leading to fund asset liquidation. Liu Xianzheng exited all fund management work through fund liquidation.
From secondary debt funds to equity-focused mixed funds, Liu Xianzheng failed across the board, with all three products he managed suffering complete setbacks. Now, after a year's absence, this former underperforming fund manager has made a "triumphant return," entrusted with managing four index funds. This raises questions: Did BOC Securities fully consider fund managers' capability boundaries when making personnel arrangements? What is the logic behind directly parachuting a fund manager with poor past performance into the passive index field where he has no experience?
The table shows Liu Xianzheng's product returns and rankings. Data Source: iFinD
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