SMM: July 20, Jianxin Fund and Huaxia Fund announced the second-quarter report of its commodity futures ETF, prior to this, the UBS Fund has announced the second-quarter report of its Baiyin Futures LOF. So far, three of the four listed commodity futures funds in China have disclosed their results in the second quarter of this year.

Overall, Jianxin Yisheng Zheng Shang Institute of energy and chemical futures ETF and silver futures LOF second-quarter profits are positive, although Huaxia feed soybean meal futures ETF in the second quarter income of more than 3 million yuan, but taking into account the fair value changes in the profit and loss in that quarter, the second quarter profit is negative.

According to the second quarter report, soybean meal futures ETF achieved a profit of 3.058 million yuan in the second quarter of this year, plus the profit and loss of fair value changes in that quarter, resulting in a loss of 20.4652 million yuan in the second quarter. As of June 30, 2020, the net fund share of soybean meal futures ETF was 0.9801 yuan, with a net share growth rate of-3.96% in the second quarter of this year, and a benchmark growth rate of-4.22%.

Although Neng Hua Futures ETF achieved an income of-51.7612 million yuan in the second quarter of this year, coupled with the profit and loss of fair value changes in that quarter, the second-quarter profit was 14.929 million yuan, and the net share of the fund at the end of the period was 0.8415. The fund's net share growth rate over the past three months was 7.91 per cent, with a benchmark yield of 8.53 per cent.

Silver futures LOF's performance in the second quarter of this year is relatively bright. The fund achieved an income of 85.5325 million yuan during the reporting period, with a profit of 285 million yuan in the current quarter, a net share of 0.829 at the end of the period, a net growth rate of 21.02% in the past three months, and a benchmark rate of return of 25.08% over the same period.

The Huaxia Fund said in the report that the price of soybean meal futures in April was seasonally adjusted ahead of schedule. During the reporting period, the price of soybean meal futures fell first and then rose. On June 5, the main 2009 contract of soybean meal futures reached a maximum of 2868 yuan / ton, the highest since April 2.

Jianxin Fund said that Nenghua Futures ETF evenly increased its positions to nearly full positions during the reporting period, in order to meet the listing operation requirements and tracking error control requirements, and the manager carried out liquidity management of the cash part of the fund in addition to futures margin, in order to enhance the income of the fund.

The UBS fund said that in the second quarter of this year, due to policy stimulus and panic caused by the epidemic, risk assets and safe haven assets rose together, volatility fell and the economy bottomed out against the backdrop of strong easing by global central banks. Overall, the gold and silver indices of the previous period rose 9.6% and 26% respectively in the second quarter, while the gold-silver ratio declined and is now around 98.

From the perspective of market share changes, in addition to soybean meal futures ETF, the fund shares of Nenghua futures ETF and silver futures LOF declined in the second quarter.

As of the end of the second quarter of this year, the total share of soybean meal futures ETF fund was 513124066.00, an increase of 4.8 million compared with the beginning of the reporting period. Neng Hua futures ETF showed more fund share redemptions, with a total fund share of 186536957.00 at the end of the reporting period, a decrease of 71 million compared with the beginning of the period, of which an institutional investor redeemed 44 million shares from April to May this year, accounting for 10.73% of the total share at the end of the period. Silver Futures LOF had a total fund share of 1450583158.68 at the end of the reporting period, a decrease of 149 million compared with the beginning of the period.

Looking to the future, the CIC UBS Fund believes that as the economy gradually comes out of the bottom and recovers, the price performance of silver may continue to be better than gold, and the gold-silver ratio will continue to decline. In the general direction, silver still faces a relatively favorable macro environment in the medium and long term: on the one hand, the low or even zero interest rate environment supports precious metal prices, and the Federal Reserve says it will maintain zero interest rates until the end of 2022. It is expected that the later interest rate meeting will strengthen the forward guidance of ultra-loose monetary policy; On the other hand, there is greater pressure on the medium-and long-term depreciation of the US dollar. Although the Federal Reserve has started unlimited asset purchases since late March, which has given a boost to the economy in the short term, taking into account the trade and fiscal deficits, the Fed's substantial expansion of the table has led to greater pressure on the medium-and long-term depreciation of the US dollar. With reference to historical experience, the large depreciation cycle of the US dollar generally corresponds to a bull market in precious metal prices.

The Huaxia Fund said in a report that since May, on the one hand, worries about trade frictions between China and the United States have re-emerged, driving the weakening of the RMB exchange rate in late May, raising import costs, thereby supporting soybean meal prices; on the other hand, China continues to buy beautiful beans, and the weaker US dollar has also raised the price of CBOT soybeans and once again supported the rise in domestic soybean meal prices. Under the overall culture cycle, the rising logic of feed demand for soybean meal remained unchanged.

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