"Liuyan Chun" launches a "desperate counterattack"
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On one side, Ningquan Asset founded by Yang Dong is still vowing to "stick to the bottom line of value" and not participate in risky investments, while on the other, some funds managed by Liu Yanchun have already experienced a rapid “rebound” in net asset value.
Both regarded as “representative figures” of value investing in the industry, their products have shown sharply different short-term results.
According to statistics from Choice, the Invesco Great Wall Dingyi Fund managed by Liu Yanchun has achieved a return of over 18.11% in the past three months (all share classes counted as Class A, NAV as of June 23), and a year-to-date return of 7.58%. This increase has clearly surpassed the performance of “the old Deng school’s” public offering products during the same period.
Such a “dramatic turnaround” in NAV is certainly worth analyzing.
Dingyi Fund’s NAV Begins Its “Counterattack”
According to Choice statistics, the Invesco Great Wall Dingyi Fund has had a three-month return of over 18.11%, and a year-to-date return of 7.58%. This is almost on par with the performance of growth-style funds.
However, other funds managed by Liu Yanchun during the same period did not show the same NAV performance.
The NAV of Invesco Great Wall Domestic Demand Growth Fund dropped by more than 4%, and Invesco Great Wall Emerging Growth declined even more. Compared to Dingyi, the year-to-date return gap between the two exceeded 24.6 percentage points.
NAV Performance May Be Related to the Addition of Fund Managers
The difference in NAVs of funds managed by Liu Yanchun seems to be somewhat related to the management teams.
The best recent performer is the product co-managed with Ke Haidong, with related announcements showing that from May 9 this year, Ke Haidong was added as a co-manager of Invesco Great Wall Dingyi Fund with Liu Yanchun.
In addition, from May 9, Xu Yida was added as co-manager to Invesco Great Wall Domestic Demand Growth Fund and the second Domestic Demand Growth Fund; from June 13, Meng Qi was added as fund manager to Invesco Great Wall JiYing Two-Year Fixed-Open Fund.
These funds’ NAV differentials are also slightly reflected.
The “Counterattack” Timing Differs
Moreover, Dingyi Fund’s NAV has diverged from other funds since May, taking a completely different path.
Specifically, since May 9 of this year, the Invesco Great Wall Dingyi Fund has surged by more than 16.8%. Meanwhile, another product managed by Liu Yanchun, Invesco Great Wall Emerging Growth, saw a clear adjustment.
Similar divergence has also appeared in the Invesco Great Wall JiYing Two-Year Fixed-Open Fund. Since June 17, its NAV performance has also clearly “split off” from the Invesco Great Wall Emerging Growth Fund, and there may be large NAV differentials moving forward.
Dingyi Has Most Likely Reallocated
Comparing the Q1 holdings and recent NAV performance of the Dingyi Fund, it’s not hard to conclude that the fund has most likely undergone significant reallocation.
From Invesco Great Wall Dingyi Fund’s Q1 holdings, the top ten heavy positions were mainly in food & beverage, agriculture, forestry, livestock and fishery, and other consumption sectors, accounting for more than 70% of NAV. Thus, at that time, the fund likely showed characteristics of a consumption-focused fund.
Based on that allocation, since May 9, the fund’s heavy positions would have been expected to contribute to a roughly 7.46% decline in NAV.
But the reality is quite different.
Since May 9, Dingyi’s NAV has increased by over 16.8%. This outperforms the estimated NAV by more than 24 percentage points. Therefore, portfolio reallocation is highly likely.
Where Did the Portfolio Move?
So, which direction did Dingyi Fund’s reallocation go?
Judging from the fund’s sharp NAV performance, it’s highly likely it shifted to the currently hot “Light industries assets” (AI industry chain).
From the performance of Shenwan’s industry sectors over the same period, to achieve a 16.8% NAV increase, the main positions should be concentrated in the top four sectors, among which the large cap companies primarily belong to the “light” (AI-relevant) industries.
In fact, Ke Haidong, the newly added co-manager, has long been an advocate of growth investing favoring AI.
Ke Haidong mentioned in a 2025 mid-year report of a fund he managed that in the first half of 2025, he focused on the overseas, tech sector with AI as the main driver, and the broad consumer sector as his three main directions.
He further stated at the time that he would continue to focus on the following investment opportunities: first, the AI-driven technological industrial transformation. Second, the overseas direction remains an area with strong long-term logic. Third, the domestic demand sector has fundamental resilience, or sectors with ongoing innovation.
As for AI, he said he would firmly remain optimistic about investment opportunities in domestic and overseas computing power sectors. Since the end of 2024, he’s also paid increased attention to industrial opportunities in areas such as smart driving, AI glasses, the Internet of Things, media internet, etc. Under the complicated international situation, he’s also highly concerned with opportunities for domestic substitutes in fields like domestic computing chips and semiconductor equipment.
A Dilemma
Whether this reallocation was personally driven by Liu Yanchun or not, the performance of Dingyi Fund points to one trend:
More and more public funds are moving from “waiting and watching” to “embracing” technology and AI.
As the meme goes, in 2026, all fund managers are split into two categories:
“Standing in the light” and “the light just standing there.”
These two styles were beautiful in their own right. But in extreme market conditions, they are both finding it increasingly difficult, as introspection and external anxieties mingle.
How they will continue to adjust is highly anticipated.
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