Many things, in hindsight, are determined by key choices at critical moments.
In 1854, the Xiang Army led by Zeng Guofan fought multiple battles with the peasant uprising army in the areas of Hubei and Jiangxi, with more losses than wins.
By the following year (1885), the Xiang Army's navy suffered a disastrous defeat against the uprising army's navy at Hukou, with over 100 warships burned, and Zeng Guofan himself narrowly escaped by jumping ship.
After this battle, it is said that when writing his report, he mentioned &#34;frequent defeats&#34; but was reminded by those around him to add &#34;frequent fights after defeats,&#34; which later evolved into a widely circulated &#34;inspirational story.&#34;
The &#34;spirit&#34; of &#34;fighting after frequent defeats&#34; is also reflected in some asset management institutions at this moment.
On April 22, 2024, BlackRock Fund launched the fundraising for its fifth equity-oriented fund, the BlackRock Excellent Voyage Fund.
Prior to this, the net asset values of the four equity-oriented funds it had previously established were all below face value, ranging from 0.58 to 0.85 yuan per share, with long-term cumulative returns all in the negative (as of April 25, data from the Tian Tian Fund Network).
In this challenging time, BlackRock Fund still &#34;faces difficulties head-on&#34; by launching another equity-oriented fund, and has appointed a newly recruited fund manager to manage this product.
Such a &#34;stubborn&#34; issuance determination indeed showcases the characteristic of foreign-owned public fund institutions being &#34;strategically firm and even tenacious,&#34; while also raising curiosity about where this new product will lead.
<h2>&#34;Not a Small Challenge&#34;</h2>
Regarding BlackRock Fund's new product this time, many industry insiders have commented that it is &#34;not a small challenge.&#34;
On one hand, recent channel distribution hotspots have mainly focused on fixed-income products, with nearly all top-raised products since the beginning of the year being bond-oriented products.
On the other hand, the several equity-oriented sibling products (excluding bond-oriented mixed products) that BlackRock has issued at high levels in the past few years are currently in a &#34;submerged&#34; state (incurring losses), adding a lot of unfavorable &#34;impressions&#34; to the issuance of new products.
Looking back at the four funds that BlackRock Fund has already issued and established:
BlackRock New Horizons Fund A, which set a &#34;record&#34; for raising funds at the same time, has a latest net asset value of 0.5895 yuan per share, has not distributed dividends since its establishment, and has accumulated over 40% in unrealized losses.
In addition, BlackRock Stock Connect Vision, with a unit net asset value of 0.71 yuan, undistributed dividends, and nearly 30% in unrealized losses.
BlackRock Advanced Manufacturing Year A, with a unit net asset value of 0.8449 yuan, undistributed dividends, and unrealized losses.
BlackRock Industry Select A, with a unit net asset value of 0.8452 yuan, undistributed dividends, and unrealized losses.
<h2>Still Emphasizing &#34;International Perspective&#34;</h2>
Furthermore, the designated fund manager for the BlackRock Excellent Voyage Fund is Bi Kai, a &#34;new face&#34; at this foreign-owned public fund
According to the prospectus, Bi Kai has worked as a senior business analyst at Xilinx (Asia Pacific) Limited, a revenue researcher at HanYa Investment Fund Limited, and a stock analyst at Morningstar Information Limited.
Subsequently, he has served as the head of overseas equity business, a member of the International Investment Decision Committee, and a fund manager for QDII index and Shanghai-Hong Kong Stock Connect products at a well-established public fund institution in mainland China.
In addition, Bi Kai graduated with a Bachelor's degree in Applied Mathematics from the National University of Singapore, and obtained a Master's degree in Business Administration (Finance) from Emory University in the United States.
From his resume, it can be seen that Bi Kai is a talent favored by foreign investors for his &#34;international perspective.&#34;
Interestingly, BlackRock's first equity fund, BlackRock Global Vision, also once organized a distinctive team with an &#34;international perspective&#34; to manage the product.
Both fund managers have extensive experience studying abroad and working for foreign institutions, but ultimately, they brought the product to a net asset value level below 0.6.
This time, whether the new investment talent introduced by BlackRock Funds can avoid the previous &#34;old path&#34; is one of the key points to watch.
<h2>&#34;Core Team&#34; Undergoes Changes</h2>
However, BlackRock Funds has indeed made some personnel changes in recent years, which may also be a significant reason why the industry is paying close attention to it.
On one hand, both the chairman and general manager of the company during its early days have resigned.
In 2024, the chairman of the company was succeeded by the seasoned local asset management expert Fan Hua, and the legal and risk control expert Chen Jian from the original team was appointed as the general manager and acting inspector. The entire team should have a new background and color.
On the other hand, the composition of its Investment Decision Committee has also changed from several years ago.
According to the recruitment document for the new fund BlackRock Outstanding Voyage, the company's Investment Decision Committee currently adopts a collective investment decision system. The members of the company's Investment Decision Committee include:
General Manager Chen Jian, Chief Investment Officer Lu Wenjie, Fixed Income Investment Director Liu Xin, Multi-Asset Investment Director Wang Xiaojing, Equity Investment Director Shen Yufei, Trading Supervisor Yang Jiamin, Risk and Quantitative Analysis Department Head Fang Xiaohua, Fixed Income Research Deputy Director Chu Chengwei, etc. (as shown in the figure below).
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b5ab02a7-a897-4012-9e68-8ecb7dcf164d.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b5ab02a7-a897-4012-9e68-8ecb7dcf164d.jpeg"/>
This is in contrast to the first generation of the Investment Decision Committee of BlackRock Funds (as shown in the figure below), with many personnel additions and replacements of key individuals.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/275f8d06-e267-4327-8e26-ca61b347a22f.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/275f8d06-e267-4327-8e26-ca61b347a22f.jpeg"/>
<h2>&#34;Fixed Income Products&#34; Successfully Rebound</h2>
Furthermore, although the equity products are still struggling to turn around, BlackRock Funds' fixed income products have unexpectedly developed relatively smoothly.
From the cumulative net asset value perspective, the three bond-oriented products of BlackRock Funds (referring to bond and bond-mixed funds) all have cumulative net asset values above face value, showing a significant improvement compared to the profit and loss situation of equity funds
As we all know, the organization, fundraising, operation, and management of fixed income products have their own unique experiences, which are quite different from equity funds.
As the world's leading fund company, BlackRock, which leads in index products, unexpectedly made its mark in the Chinese market with fixed income products.
From another perspective, it can also be seen that as long as attention is paid to local market characteristics and learning from the market, foreign wholly-owned asset management institutions can still achieve success.
<h2>Revealing Talent Recruitment Strategies</h2>
There have been concerns in the industry about the treatment of wholly foreign-owned public funds.
Can they catch up with the leading domestic asset management institutions?
Do they prefer talent with an &#34;international perspective&#34; in terms of style, or is it influenced by salary considerations?
From related headhunting and recruitment information, the welfare benefits of foreign wholly-owned institutions are quite good, but there is no specific statement about their salary levels.
For example, recruitment information on headhunting platforms shows that BlackRock is looking for a director-level institutional salesperson, with the salary level marked as &#34;negotiable,&#34; but the related benefits are described as follows:
A series of welfare benefits include generous retirement plans, tuition reimbursement, comprehensive medical insurance, as well as parental support and flexible leave plans.
Applicants have &#34;hard criteria,&#34; such as having at least ten years of work experience in onshore asset management institutions in China (with at least five years in a managerial position); preference is given to individuals from joint ventures and commercial partner institutions; fluency in both written and spoken Chinese and English.
This public fund is also recruiting fixed income asset traders, requiring applicants to have 3-7 years of professional experience in onshore China.
Emphasizing &#34;onshore professional experience&#34; may be an important recruitment feature nowadays.
<h2>When Will the &#34;Equity Curse&#34; Be Broken?</h2>
It is unclear when the industry began to have different expectations for the performance of equity products from newly established foreign wholly-owned public funds.
Looking at the past period, several newly established wholly foreign-owned public funds have also continued the trend of fixed income products outperforming equity products. When this &#34;curse&#34; on equity investments can be broken is a topic of great interest.
However, foreign wholly-owned institutions are clearly preparing for this.
Including BlackRock Fund, foreign wholly-owned institutions continue to raise funds at low levels, which is also a strategic choice to some extent.
In an era where market undervaluation is particularly evident, continuously sowing the &#34;seeds of equity investment&#34; may eventually bring about a moment of net asset value rebound.
When this moment arrives will be a key point to watch for the future development of foreign public funds

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