Invesco Great Wall Hengrui Select Fund, Balanced Layout Across Three Dimensions to Capture Structural Opportunities

Since the outbreak of geopolitical conflicts in the Middle East, the global trade environment has remained volatile, and capital markets have experienced increased fluctuations. Balanced fund manager Zhou Hanying stated that geopolitical conflicts could become this year’s black swan event. In the short term, technology remains highly prosperous, but investors should be cautious of valuation corrections driven by marginal liquidity tightening. In this context, low valuation, high dividends, asset structure, and positioning may become key factors influencing investment returns in 2026.

Valuable assets may present good buying opportunities

“Sometimes, a company’s valuation is not only based on current fundamentals but also influenced by macroeconomic changes, including geopolitical conflicts, interest rates, and exchange rates. Paying attention to macroeconomic shifts and having a basic understanding of core market risks and sources of returns are crucial,” Zhou Hanying believes. She pointed out that the recent tensions in the Strait of Hormuz caused by Middle Eastern conflicts, as a critical passage for liquefied natural gas and sulfur resource transportation, could directly impact the global technology supply chain and potentially become the biggest black swan event in the market by 2026.

It is understood that Zhou Hanying is the proposed fund manager for Invesco Great Wall Hengrui Select (Code: 026376), which is currently being launched. The new fund will adhere to a balanced investment system across three dimensions—industry/style/market cap—using growth potential, valuation, and certainty to build a dynamic balance. Under the premise of strictly controlling portfolio drawdowns and maintaining safety margins, the goal is to generate excess returns for investors through cycle-proof strategies. Regarding investment focus, Zhou Hanying stated that she will prioritize energy security, high-end manufacturing, and domestic consumption.

Zhou Hanying further analyzed that after the market experienced a “spring frenzy” in the first quarter, followed by intensive disclosures of annual and first-quarter reports, the second quarter is expected to shift from “extreme growth” to profit-driven and style-balanced strategies. The timing advantage of the new fund’s initial positioning, combined with a diversified and balanced allocation style, may help it better navigate structural market conditions. Looking ahead, due to international relations, the global trade environment remains unstable, and high-quality assets may offer good entry points.

Using a Dumbbell Strategy to Sustain Growth Potential

Although a balanced investor, Zhou Hanying is not a low-volatility conservative. She dares to take aggressive positions when industry prosperity surges. In her investment approach, she relies on a “cost-effectiveness” metric, flexibly allocating assets across different styles to adapt to market changes. She believes that balance is not static but involves reshaping the structure according to market cycles, using a dumbbell strategy to support growth flexibility with a stable core.

For portfolio construction, Zhou Hanying adopts a core dumbbell strategy, dynamically adjusting the allocation at both ends based on market conditions. During bullish periods, she prefers a “high ROE (return on equity) + prosperity growth” structure, with the stable end priced by P/E (price-to-earnings ratio), selecting undervalued targets; the growth end is priced by PEG (price/earnings-to-growth ratio), focusing on stocks with high annualized earnings growth as aggressive positions. When liquidity tightens and markets are sluggish, she shifts to a “high dividend + stable” defensive structure.

For example, the latest top ten holdings of Invesco Great Wall Growth Star include both growth stocks such as power, electronics, and communications, as well as value stocks like non-bank financials, non-ferrous metals, and home appliances. This presents a typical “dumbbell” structure of tech growth plus high dividends, enabling the fund to capture opportunities in the tech growth industry while stabilizing net asset value through high-dividend assets, seeking excess returns while controlling drawdowns—an approach that balances offense and defense. (Data source: Fund periodic reports, industry classification by Shenwan Level 1 Industry, as of 2025/12/31)

In terms of actual performance, Zhou Hanying’s investment philosophy has received positive market feedback. Since taking over Invesco Great Wall Growth Star on May 21, 2020, she has navigated multiple market style rotations, consistently outperforming the benchmark, with a total return of 103.83%, four times the benchmark’s performance during the same period. She also demonstrates strong drawdown control, with a maximum drawdown of only -26.57% under her management, outperforming the CSI 300 Index and similar equity funds, which experienced drawdowns of -45.60% and -43.30%, respectively. Thanks to her excellent performance, the fund has received Morningstar’s five-year and ten-year five-star ratings and was awarded the 22nd “Five-Year Open-End Equity Fund with Continuous Excellence Golden Bull.” (Data source: Wind, as of 2026/2/28; benchmark return during the same period was 21.34%. Ratings and awards from Morningstar and China Securities Journal, as of 2025/12/31)

With twenty years of experience in fund management and nearly a decade of investment expertise, Zhou Hanying has investment experience across A-shares, Hong Kong stocks, and other markets. She states that her goal with Invesco Great Wall Hengrui Select (Code: 026376) is to focus on performance benchmarks and strive to generate long-term, stable excess returns for investors.