Surging Volume on Debut Day
Fuhua Investment Trust's active Fuhua Taiwan New Stars 00418A was formally listed on 11月11日, adding a new member to the actively managed ETF market. Its debut performance was strong, closing at 10.41元, up 4.31%, with trading volume of about 26.1萬張 and turnover of about 26.4億元, showing active trading in the early listing period.
Opened Lower and Fell Below Issue Price on Second Day
The listing rally did not continue. On 11月12日 the share price opened lower and moved lower, reaching 9.93元 as of 下午1時19分, down 0.48元 or 4.61%, falling below not only the 10元 issue price but also retreating from the prior day's listing close, facing a break-below-issue-price test on its second day of listing. Notably, from the fund's establishment on 10月29日 to its formal listing on 11月11日, 00418A went through a sharp correction in Taiwan stocks, during which manager Rong Yiping gradually built holdings amid market declines. According to Bobo Flow, the fund's equity position cost an estimated 82.2億元, with market value reaching 87.5億元 as of 11月11日, a paper gain of about 6.5%.
Track Record of the 9x Goddess of War
00418A is managed by Fuhua Investment Trust manager Rong Yiping. She was dubbed by the market as the 9x Goddess of War for generating more than 9x NAV growth while managing the Nomura Taiwan Strategy Fund. According to statistics by finance fan page Bobo Flow based on managers' actual tenures, rather than directly comparing funds, manager tenure performance was compared against 0050 over the same period. Among 44 Taiwan equity fund managers who remained in place over a three-year period, only 23 were able to beat 0050, with Rong Yiping ranking first with 14.6 percentage points of annualized excess return, followed by second-place Wang Ningyi at 10.2 percentage points and third-place Yao Yuru at 8.7 percentage points.
Looking at past management records, Rong Yiping managed the Nomura Taiwan Strategy Fund for 6.1 years, with cumulative NAV growth of 920.5%, versus 372.7% for 0050 over the same period; Nomura Hongyun Fund also rose 460.5% during her 3.2 years of management, versus 207.6% for 0050. However, high returns also came with greater volatility risk, with the Nomura Taiwan Strategy Fund seeing a past maximum drawdown of 40% and falling 30% in 2022, versus a decline of about 21% for 0050. In addition, after Rong Yiping moved to Fuhua, her Fuhua All-Round Fund rose only 1.6% from 5月14日 to 10月22日, versus 12.6% for 0050, leaving short-term performance to be observed.