A fund named "稳盈" (Wenying), which implies stable returns, has delivered a poor investment experience. Dependable Stable Growth Fund suffered losses exceeding 2.1 billion yuan in the first quarter, with its net value underperforming the benchmark. Concurrently, the fund attracted significant capital inflows and outflows. It has also been embroiled in rumors of违规 (non-compliant) collaborations with online influencers.
Dependable Stable Growth Fund's recently disclosed Q1 report has drawn widespread industry attention. The fund recorded losses of over 2.1 billion yuan within the quarter, setting a record for the largest single-quarter loss. Specifically, its Class C shares lost over 2.0 billion yuan, while Class A shares lost over 100 million yuan. The fund's maximum drawdown during the period exceeded 25%.
Notably, the Class C shares still attracted subscriptions exceeding 20 billion units, alongside redemptions of over 18 billion units.
Earlier this year, the fund garnered attention due to rumors of collaborating with an online influencer to achieve single-day sales surpassing 10 billion yuan. Multiple media outlets reported that a certain "D Fund Company" was involved in违规 fund sales practices, prompting regulatory authorities to take appropriate measures against the institution and individuals involved. Shortly thereafter, Zuo Chang, the former chairman of Dependable Fund, stepped down due to work adjustments.
Regarding the net value fluctuation, Dependable Fund responded that in the first quarter, the product underperformed its benchmark due to multiple factors including the international situation, sector performance, and shareholders' capital allocation plans.
Addressing the substantial subscription and redemption activity, Dependable Fund explained that the company has strict, standardized systems ensuring robust investment research and risk control, with operations being合规 and orderly. The related volatility was primarily influenced by market conditions and shareholders' capital arrangements. The company stated it would continue optimizing management to safeguard shareholders' interests and improve the investment experience.
The Q1 report disclosed on April 21 showed both revenue and profit for Dependable Stable Growth Fund were negative for the quarter. Class A shares reported revenue of -54 million yuan and a profit of -102 million yuan. Class C shares reported revenue of -1.065 billion yuan and a profit of -2.056 billion yuan. Combined, both share classes incurred a total loss of approximately 2.158 billion yuan in Q1.
This record single-quarter loss exceeding 2.1 billion yuan caused an uproar within the industry. Reports indicate that investors have initiated collective complaints via platforms like Consumer Protection, demanding compensation from Dependable Fund. The number of related complaints reportedly reaches into the thousands, mainly focusing on allegations of "违规 sales practices," "insufficient risk disclosure," and "investment style drift."
Dependable Fund stated it highly values shareholder feedback and maintains proactive communication. When asked about compensating for the losses, the fund company expressed continued optimism regarding the innovative opportunities brought by artificial intelligence and the full-year investment prospects in AI applications. It pledged to strengthen investment research capabilities, optimize strategies, enhance risk control and liquidity management systems, adhere to合规 and stable operations, and strive to deliver solid long-term performance to repay shareholder trust.
In Q1, both the net value and share units of Dependable Stable Growth experienced significant volatility.
The quarterly report indicated that as of March 31, the net asset value per share for Class A was 0.9727 yuan and for Class C was 0.9592 yuan. The net value growth rates for Q1 were -2.38% for Class A and -2.5% for Class C, compared to the benchmark's return of -1.5%, meaning both share classes underperformed.
Over longer periods—the past one, three, and five years—the Class A share's net value growth rate has consistently underperformed its benchmark. Notably, over the past three years, Class A shares declined by 23.49%, significantly trailing the benchmark by 36.52 percentage points.
The fund's net value peaked around January 14, having risen over 30% during the quarter, before experiencing a volatile decline. Although there were minor rebounds, subsequent drops were relatively sharp. Wind data shows the fund's maximum drawdown between January 15 and March 23 exceeded 25%.
Despite this high volatility, the fund attracted rapid capital turnover. The quarterly report showed Class A shares had total subscriptions of 709 million units and redemptions of 481 million units in Q1. Class C shares saw massive activity with total subscriptions of 21.809 billion units and redemptions of 17.812 billion units.
This resulted in net inflows of 228 million units for Class A and approximately 4 billion units for Class C during the quarter. By the end of Q1, Class A assets under management grew to 267 million yuan, a 479.22% increase quarter-on-quarter, while Class C AUM reached 4.775 billion yuan, up 394.71% from the previous quarter.
These extreme subscription and redemption figures followed rumors in January suggesting the fund attracted 12 billion yuan in a single day. Shortly after these rumors emerged, Dependable Fund issued two purchase limit announcements on January 13, effective January 14, capping daily single-account subscriptions at 100,000 yuan for Class A and 10,000 yuan for Class B shares.
Dependable Fund attributed the net value volatility to multiple factors affecting Q1, including the international situation, sector performance, and shareholders' capital arrangements.
Concerning the substantial share fluctuations, the company stated that the complex Q1 market environment led to阶段性 (periodic) volatility in subscriptions and redemptions, influenced by market trends, industry liquidity, and shareholder capital plans. The company emphasized it promptly implemented purchase limits for proactive control. Fund managers will prudently manage the portfolio to ensure stable fund operation, continuously optimize management, protect shareholder interests, and enhance the investment experience.
Public information shows Dependable Stable Growth Fund was established in May 2023 and is co-managed by Lei Tao and Lu Yang, with 10 and 7 years of securities experience respectively.
The Q1 report revealed the fund's heavy concentration in AI application sector stocks. The managers expressed in the report that they "remain highly optimistic about the full-year investment opportunities in AI applications,"看好 (favoring) supportive policies for the scaled development of AI applications and believing the commercial potential is increasingly foreseeable.
Consequently, the managers maintain a positive outlook on AI applications as a strategic industrial trend and continue to看好 the innovation opportunities brought by AI. The fund will continue focusing deeply on sub-sectors within AI applications.
The fund's top ten holdings in Q1 were concentrated in the AI application field, with a high concentration ratio of 62.53%. This heavy bet on AI initially drove a rapid net value increase early in the year, followed by involvement in marketing rumors about collaborations with an online influencer leading to single-day sales exceeding 10 billion yuan.
Following these controversies, there was a change in senior management. On January 29, the CSRC's institutional supervision department reported that "D Fund Company" collaborated with an internet influencer lacking fund sales qualifications and securities从业资格 (practice资格) for marketing purposes. The company paid substantial advertising fees, using the influencer's预告 (pre-announcement) of a large purchase of the fund's "A Product" on a platform as a gimmick. This leveraged their流量 (traffic) and influence to urge investors to follow suit,诱导 (inducing) investors with mismatched risk tolerance to purchase medium-to-high-risk products.
Based on relevant laws and regulations, regulators imposed corrective measures on "D Fund Company," including suspending acceptance of new public fund product registrations, while also holding accountable senior personnel such as the General Manager, Chief Compliance Officer, and head of the internet business department.
In February, Dependable Fund announced a senior management change: Zuo Chang stepped down as chairman due to work adjustments, with Wu Xiaochun, General Manager of Dependable Securities, acting as chairman pro tempore. Dependable Fund stated this adjustment was a routine move amid frequent executive changes in the public fund industry and would not affect normal operations or long-term development.
Dependable Fund further assured that the company currently maintains strict, standardized systems for investment research and合规 risk control, ensuring合规 and orderly operations. It committed to continuously optimizing management to safeguard shareholder interests effectively.
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