Questioning Liu Yanchun's Rigid Strategy? Step Back from Short-Term Fluctuations and Look at Invesco Great Wall's Investment Research Foundation

Product Listing | Zhongfang.com

Review | Li Xiaoyan

Recently, the performance and management fee collection issues of Invesco Great Wall’s Emerging Growth Hybrid A have attracted market attention. Some retail investors have expressed dissatisfaction due to short-term net value declines, bringing the topics of “scale and performance” and “management and investors” balance of interests in public funds back into focus. Objectively, short-term performance fluctuations are normal in equity investments. Industry mechanisms and corporate governance are continuously improving. As a leading public fund manager, Invesco Great Wall’s long-term value creation, balanced business development, and compliant operations remain unchanged. The industry is steadily moving toward better alignment with investors’ interests.

Founded in 2006, Invesco Great Wall’s Emerging Growth Hybrid A is an established fund that once achieved impressive returns during the 2019-2020 consumer bull market under Liu Yanchun’s value investing philosophy, becoming a star product with over 10 billion yuan in assets and earning the trust of many investors. During 2020-2021, amid a core asset rally, the fund’s size grew rapidly, with holdings focused on high-quality sectors such as liquor, duty-free, and pharmaceuticals, aligning with market valuation logic at the time. However, since the second half of 2021, the A-share market experienced sharp style shifts, core asset valuations corrected, and consumer and pharmaceutical sectors continued to adjust. The fund has experienced approximately 32% net value decline over the past three years, with short-term performance falling short of expectations, which is the core reason for market discussion.

From an industry perspective, charging management fees based on fund size is a regulated, standardized model recognized by authorities. These fees are used for core activities such as research and development, product operation, risk control, and compliance, forming the foundation for the fund company’s ongoing operations. Invesco Great Wall has strictly followed the fee collection terms outlined in the fund contract from 2021 to 2024, covering operational costs without illegal charges. Meanwhile, custody fees are collected by the custodian bank independently of the fund company, under regulatory supervision, ensuring the safety of fund assets. Under short-term performance pressure, the notion of “fixed income” management fees may seem inconsistent with investor returns, but this system design disperses operational risks and ensures long-term service capabilities, rather than being a special arrangement for a single company.

Liu Yanchun, the fund manager, has 22 years of experience, with over a decade focused on the consumer sector. His investment philosophy of emphasizing quality business models and long-term corporate competitiveness has generated excess returns across multiple market cycles. In recent years, his holdings have been relatively concentrated and style stable, reflecting a commitment to long-term value rather than strategic inertia. In a market with rapidly shifting styles, avoiding chasing hot topics and sticking to one’s core competencies are essential for long-term investing. Since 2025, his holdings have been slightly optimized, gradually adjusting stock structures and dynamically refining the portfolio in line with macroeconomic recovery, demonstrating proactive market adaptation. Additionally, Liu Yanchun consistently expresses optimism about consumer recovery and domestic demand improvement in quarterly reports, based on long-term logic of income growth and consumption upgrading, without abandoning the pursuit of long-term returns for holders.

Looking at Invesco Great Wall’s overall development, the company has not fallen into the trap of “scale obsession” but has maintained a balanced and steady growth trajectory. By the end of 2025, the company’s management scale approached 800 billion yuan. The rapid development of fixed income reflects market demand and asset allocation optimization. In recent years, the fixed income team has built multiple five-star rated bond funds with solid investment capabilities, providing stable returns for low-risk investors and becoming a key driver of the company’s growth. This “equity + fixed income” dual-engine layout diversifies risk across different business cycles and offers investors a variety of options, exemplifying mature operations of top-tier public fund managers.

In terms of equity research and investment, Invesco Great Wall continues to maintain industry-leading strength. Many of its active equity funds have long-term excellent performance, with nine products ranking on the Galaxy Securities long-term performance list. Products like Growth Star and Quality Evergreen have significantly outperformed benchmarks over the past three years and have received numerous awards such as the Golden Bull Award. Even amid key personnel changes, the company relies on a mature research system, continuously cultivating new fund managers, maintaining team stability and innovation. This reliance on systematic research and investment processes, rather than individual star managers, embodies the core of long-term investment philosophy.

Currently, the public fund industry is undergoing a high-quality development transformation. Regulators are promoting reforms such as floating management fees and strengthening the linkage between performance and fees, guiding the industry from “scale-focused” to “return-oriented” development. As a leading institution, Invesco Great Wall actively responds to these reforms, optimizing product design and evaluation mechanisms, and incorporating investor returns into core assessment criteria. For products under short-term performance pressure, the company is strengthening research support, optimizing holdings, and balancing fund managers’ investment ideas with investors’ actual interests to gradually resolve short-term conflicts.

Returning to the essence of investment, the value of equity funds should be measured across cycles; short-term declines do not mean long-term value has failed. Invesco Great Wall’s accumulated experience in compliant operations, balanced business development, and long-term research remains the foundation of investor trust. For retail investors, rationally viewing market cycles and short-term fund fluctuations, and choosing products aligned with their risk preferences, is key. For fund companies, continuously improving research capabilities and strengthening alignment with investors’ interests are the long-term path.

The development of the public fund industry always involves balancing “short-term volatility” with “long-term value” and “scale growth” with “performance returns.” Invesco Great Wall’s current challenges are a reflection of industry cycles, not isolated issues. With ongoing reforms and improved corporate governance, leading public fund managers will better fulfill their original mission of “trustees managing others’ money” and achieve a symbiotic, win-win situation among fund companies, fund managers, and investors through long-term value creation.