Despite the overall positive environment in the A-share market, the Morgan Alpha Integration Fund A has delivered a -42.02% return over nearly ten years, ranking eighth on the equity fund decline list. Since its establishment in April 2015, the fund's total return stands at -54.60%, meaning initial investors have lost more than half their investment, with net asset value essentially halved. Although the fund achieved a 17.74% rebound this year with current assets under management of 193 million yuan, its long-term performance remains concerning.

An in-depth analysis of its year-by-year performance reveals the fund exhibits extremely volatile characteristics. It performed exceptionally well during bull markets in 2017, 2019, and 2020, achieving impressive returns of 23.14%, 43.96%, and 49.74% respectively. However, during bear markets, it experienced massive drawdowns, plummeting -41.44% in 2018 and -33.75% again in 2022, significantly exceeding the concurrent benchmark and CSI 300 Index declines.

Data shows the fund's worst consecutive 6-month return reached -37.42%, while its best consecutive 6-month return was 50.88%. This extreme volatility has resulted in a poor long-term holding experience.

From a relative performance perspective, the fund's performance has been equally disappointing. In 2024, the fund declined -11.48% while the benchmark rose 10.14%, lagging by over 21 percentage points. In 2023, the fund fell -24.03% compared to the benchmark's -5.55% decline, significantly underperforming. This pattern of underperforming the benchmark in most years reflects challenges in its investment strategy's ability to consistently generate excess returns.

The relatively stable research team represents one of the fund's few bright spots. Over its ten-year history, it has been managed by 5 fund managers, with an average tenure of 2.43 years, which is more stable compared to other poorly performing funds.

However, performance divergence among fund managers has been pronounced. Zheng Maoping achieved a positive 26.20% return during his tenure in 2015, while Zhou Zhanhai delivered a -49.37% return during his 2022-2024 tenure, ranking 1886 out of 1970 in peer comparison. Zhao Jianshen recorded a -15.96% return during his six-year tenure from 2015-2022. Current fund manager Yang Jingyu has achieved a 12.07% return since taking over in June 2024, showing decent performance though the observation period remains short.

Regarding portfolio structure, the fund's second-quarter holdings were relatively diversified, covering multiple sectors including new energy, financial services, and technology. Top ten heavy positions included CATL, Shengyi Technology, Bank of Jiangsu, Innolight Technology, Agricultural Bank of China, and Industrial and Commercial Bank of China. Holdings changes varied compared to the previous period, with a notable 35.22% reduction in Shengyi Technology, indicating dynamic portfolio adjustments.

In the second-quarter report, the fund manager outlined the investment approach: "This quarter saw significant market volatility. Early April brought unprecedented trade tariff friction initiated by the United States, causing substantial market declines. Subsequently, as the U.S. postponed major tariff increases, markets gradually normalized, with significant rebounds in high-growth sectors and high-dividend industries. This quarter, the fund increased allocations to technology, healthcare, banking, and export manufacturing sectors while reducing exposure to food and beverage sectors."

Looking ahead, the fund manager expressed relative optimism, believing that China's economic development drivers have changed significantly compared to previous years, with technology manufacturing showing more pronounced economic impact and continuously improving export competitiveness. The fund will continue focusing on high-quality individual stocks with strong competitiveness, high growth prospects, and rapid earnings growth across major industry sectors, combined with valuation considerations to seek excess returns.

However, these optimistic statements contrast sharply with the fund's poor long-term performance. Despite recent performance improvements, questions remain whether this high-volatility, high-turnover investment approach can truly deliver sustained stable returns for investors.

For investors, even funds with relatively stable research teams may cause substantial losses due to highly volatile investment strategies. When considering investments in such funds, investors need to thoroughly assess their risk tolerance and avoid being misled by short-term gains while overlooking long-term high-risk characteristics.