As the first quarter of 2026 approaches its end, intensified market volatility has led to an increasing number of investment products recording losses year-to-date. Many funds that performed reasonably well in 2025 have encountered significant setbacks this year, including the Everbright Dynamic Select Strategy Fund.
By the close of trading on March 26, the fund’s net value growth rate for 2026 stood at -10.15%, ranking it 2,240th out of 2,347 peer funds. This represents a stark contrast to its performance in 2025, when the fund achieved a growth rate of approximately 36%, placing it in the top third among 2,274 comparable funds.
The underperformance is not limited to this single product. All eight funds currently managed by Fang Lei have recorded negative returns year-to-date. Notably, four of these funds were added to his portfolio starting in February 2026. Questions arise as to whether the disappointing results stem from managerial overload or a mismatch between his investment strategy and this year’s market trends.
Examining Fang Lei’s background reveals that he serves as the head of the equity investment team, chief strategist, and fund manager at Everbright BNP Paribas Asset Management. With nearly a decade of experience in fund management, he specializes in investments within the technology and advanced manufacturing sectors. He joined the company in June 2015 and has held roles including strategy analyst and assistant research director.
The Everbright Dynamic Select Strategy Fund is the product he has managed for the longest duration. Since its inception, the fund has been overseen by five managers. Fang Lei’s total return since taking charge ranks second among them. A review of the top ten holdings from the fourth-quarter 2025 report highlights his strong emphasis on technology stocks. However, these holdings have performed poorly since the start of the year, with only one company, 3peak Incorporated, recording positive returns. Similarly, over the past three months, this remains the sole stock in the portfolio that has gained value.
Among the nine declining holdings, four have fallen more than 20%: Zhejiang Rongtai Electric Material Co., Ltd., Cambricon Technologies Corporation Limited, Beijing Kingsoft Office Software, Inc., and Zhejiang Sanhua Intelligent Controls Co., Ltd.—all of which are leaders in their respective sectors. A comparison with the third-quarter 2025 holdings indicates that Fang Lei made only minor adjustments to the portfolio.
His conviction in leading stocks has exposed weaknesses in practical application. For instance, Cambricon Technologies Corporation Limited, a domestic semiconductor leader he has long held, reported a turnaround to profitability in its 2025 annual report. Despite this, the stock’s price has declined over 20%, surprising many institutional investors.
In the quarterly report, Fang Lei commented, "The funds under my management in the fourth quarter primarily focused on the domestic technology industry chain, which has underperformed recently, leading to relative weakness in net asset value. Looking ahead to 2026, we maintain allocations in AI software, robotics, and edge AI, while also paying close attention to semiconductor localization and innovative pharmaceuticals."
He further elaborated, "In the fourth quarter, we made slight adjustments to the portfolio: 1) adjusted exposure to some second-tier innovative pharmaceutical stocks, 2) increased focus on leading humanoid robotics companies, 3) emphasized advanced memory within the semiconductor sector, and 4) added some insurance assets." However, the actual outcomes appear to have fallen short of his intended objectives.
Another fund under his management, Everbright Industrial New Momentum, also faces challenges, albeit for different reasons. Fang Lei assumed management of this fund on August 21, 2021. His total return since taking over is approximately 5.57%, the lowest among the fund’s four managers. Year-to-date in 2026, the fund’s net value has declined by 2.80%, ranking 1,828th among 2,347 peer funds.
An analysis of the fourth-quarter 2025 holdings shows a concentrated allocation to large-cap technology stocks, with seven of the top ten holdings listed on the STAR Market. These include Cambricon Technologies Corporation Limited, SMIC, Hygon Information Technology Co., Ltd., AMEC, 3peak Incorporated, ML Optic, and BES. This strategy may reflect an expectation that the 20% daily price limit on the STAR Market could amplify gains. However, only two of these seven stocks have posted gains of less than 20% year-to-date, while four have declined more than 20%.
This raises the question of why Fang Lei did not allocate to companies listed on the ChiNext board, which also features a 20% price limit. One possible explanation is that the ChiNext board is dominated by sectors such as new energy and innovative pharmaceuticals, whereas Fang Lei maintains a strong preference for technology stocks aligned with the AI trend.
In the fourth-quarter report, he emphasized, "The funds under management in the fourth quarter focused heavily on the semiconductor sector. We believe semiconductor innovation is the foundational driver of technological progress. The current surge in AI-related capital expenditure may catalyze a new growth cycle for the global and domestic semiconductor industries. We remain confident in the prospects of China’s semiconductor sector, particularly in advanced manufacturing processes."
While semiconductors have been a key theme in 2026, high volatility in the sector has resulted in poor investment experiences for both stock and fund investors. Moreover, this singular focus on semiconductors is not consistently reflected across his other managed products. Despite these challenges, Fang Lei’s responsibilities have expanded rather than contracted.
According to the company’s website, he began managing four additional funds in February 2026: Everbright BNP Paribas High-End Equipment, Everbright BNP Paribas Ruiying, Everbright Advantage, and Everbright Quality Life. This doubled the number of funds under his supervision. However, none of these funds have achieved positive returns year-to-date.
Notably, the previous manager of Everbright High-End Equipment, Lin Xiaofeng, stepped down on February 14 of this year. Her total return during tenure was approximately 27.35%, making her the only manager among the three to have delivered positive results. Similarly, Lin previously managed Everbright Ruiying and Everbright Advantage Configuration, both of which have now been transferred to Fang Lei.
In contrast, Everbright Quality Life was previously managed by another fund manager, Zhan Jia, who continues to manage other funds within Everbright BNP Paribas Asset Management. Lin Xiaofeng, however, no longer oversees any funds.
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