E Fund Consumer Industry Quarterly Report is released! Xiao Nan: Increase the allocation of essential items and high-growth sub-sectors.

Recently, the quarterly report of E Fund Consumer Industry managed by Xiao Nan and Wang Yuanchun was disclosed. Compared to the previous quarter, the top ten holdings of the fund added Eastroc Beverage and Sailun Group, with Fuyao Glass Industry Group being the largest holding. Xiao Nan pointed out in the report that this quarter mainly focused on lowering portfolio valuation and increasing portfolio growth, retaining high-quality companies with the best business models and strongest cash generation ability in some sub-industries in the counter-cyclical phase, reducing holdings of companies with significant damage and weak competitiveness, and increasing allocation to essential products and high-growth niche tracks. Specifically, as of the end of the fourth quarter of 2024, the top ten holdings of E Fund Consumer Industry were Fuyao Glass Industry Group (600660.SH), Midea Group Co., Ltd (000333.SZ), Kweichow Moutai (600519.SH), Wuliangye Yibin (000858.SZ), Shanxi Xinghuacun Fen Wine Factory (600809.SH), Anhui Gujing Distillery (000596.SZ), Great Wall Motor (601633.SH), Eastroc Beverage (605499.SH), HAIER SMARTHOME (600690.SH), Sailun Group (601058.SH). Compared to the end of the third quarter, the fund added Eastroc Beverage and Sailun Group to the top ten holdings; with Fuyao Glass Industry Group holding a 9.6% share, making it the largest holding of the fund, while Beijing Shunxin Agriculture exited the top ten holdings. As of the end of the reporting period, the net asset value per share of the fund was 3.593 yuan, with a growth rate of -6.68% for the reporting period, compared to a benchmark return rate of -5.82% during the same period. Xiao Nan stated in the report that in the fourth quarter of 2024, after the reversal in late September, the market gradually began to consolidate. The current policy signals are very clear and a source of investor confidence, but there is still an inherent requirement for risk release in the market in the short term. The Shanghai Composite Index rose by 0.46% this quarter, the Shanghai 50 Index representing the market style fell by 2.56%, and the Growth Enterprise Board Index representing the small and medium-sized growth style fell by 1.54%. With the influx of incremental funds in the market, trading activity has also significantly increased, with growth stocks performing significantly better than cyclical stocks related to the real economy. The CSI Mainland Consumer Index fell by 7.37%, one of the weaker sectors after the late September rally. Looking at various sub-sectors of the consumer industry, commerce and retail, media, and automotive sectors led the gains, while liquor, agriculture, and food sectors were among the top losers. Currently, the entire consumer sector belongs to categories that benefit from policies but are also constrained by the later cycle, and fundamental recovery will take some time, especially for some optional consumer products, which are more sensitive to macroeconomic conditions. This quarter mainly focused on lowering portfolio valuation and increasing portfolio growth, retaining high-quality companies with the best business models and strongest cash generation ability in some sub-industries in the counter-cyclical phase, reducing holdings of companies with significant damage and weak competitiveness, and increasing allocation to essential products and high-growth niche tracks.