Since September 24th,the A-share market has experienced a rapid rebound,with the ChiNext index surging by over 17% on October 8th and the Shanghai Composite Index approaching 3,500 points; on October 9th,however,the A-share market corrected,with the ChiNext index falling by over 10% in a single day.With significant trading volumes,market volatility has also been amplified.
After experiencing significant fluctuations in the equity market,investors have come to more deeply appreciate the importance of asset allocation,and "fixed income plus" funds may be a good choice.
In recent years,the management scale of "fixed income plus" funds has steadily increased.Data from Huaxi Securities Research Institute shows that as of the end of the second quarter of 2024,the total scale of "fixed income plus" funds increased from 1,199.155 billion yuan at the end of the first quarter of 2024 to 1,307.944 billion yuan,with a scale increase of 108.789 billion yuan quarter-on-quarter.
Additionally,this year,public fund companies have also been actively deploying "fixed income plus" funds.Wind data shows that as of September 26th,based on the fund establishment date as the statistical standard,the public fund industry established 90 "fixed income plus" funds within the year (only showing initial funds,excluding transformation funds and post-graded funds),among which there are 20 products with an issuance scale exceeding 2 billion yuan.
As a major player in fixed income,Bosera Fund has entered the "fixed income plus" fund issuance market,with its Steady and Profitable Fund officially on sale,with the issuance period from October 14th to October 25th,and the appointed fund managers are Huang Ruiqing and Cheng Zhuo.The fund adheres to the positioning of low-volatility "fixed income plus" products,insists on the concept of absolute returns,and takes dividend low volatility,selected convertible bonds,and growth strategies as the main investment lines,striving to control drawdowns.
New products will be added to the "fixed income plus" camp.
Nobel Prize-winning economist Harry Markowitz once said that asset allocation is the only free lunch in investing.Asset allocation is a means to minimize investment risk by diversifying investments,and public fund investment is also an important part of it.
As a product that meets investors' needs for both offensive and defensive investment and has low correlation with assets,"fixed income plus" funds are committed to diversifying risks and striving for returns in market fluctuations,becoming one of the options for investors to allocate assets.
So,among the thousands of "fixed income plus" funds in the entire market,how do investors choose products that suit them?In fact,the process of investors selecting products is also a comprehensive choice of the overall performance of the fund company,professional investment research capabilities,product line settings,etc.,and it is not easy to stand out in the end.
The "Fund Company Equity and Fixed Income Asset Performance Ranking" released by Haitong Securities shows that as of September 30,2024,the past ten-year return rate of fixed income funds under Bosera Fund was 89.31%,ranking second among 17 large fixed income companies.In the debt-biased fund ranking published by Haitong Securities,Bosera Fund ranked second among 66 fund companies with a return rate of 106.20% over the past decade.(Data source: "Haitong Securities: Fund Company Equity and Fixed Income Asset Performance Ranking (2024.09.30)",debt-biased funds include quasi-debt bond type,quasi-debt bond closed-end type,convertible bond type,debt-biased bond type,and debt-biased bond closed-end funds.)
The outstanding long-term performance is the result of Bosera Fund's comprehensive layout of fixed income products and an affirmation of the professional capabilities of Bosera's fixed income team.
It is reported that Bosera Fund,based on investors' different risk preferences and return expectations,has refined "fixed income +" funds into "fixed income +" products with relative return targets and "fixed income +" funds with absolute return targets.By flexibly matching stocks and bonds,it has created different strategy combinations with low volatility,balance,and aggressiveness to meet investors' differentiated needs.
At the same time,Bosera Fund's "fixed income +" product line continues to be improved.It is understood that the company's Bosera Steady Heng Li has a first collection period from October 14,2024,to October 25,2024,and the investment in equity assets and convertible bonds,exchangeable bonds accounts for no more than 20% of the fund's assets.
Bosera Steady Heng Li's equity position adheres to the investment idea of absolute return,using a variety of strategies to reduce correlation with market Beta,while setting a drawdown control mechanism for each type of strategy.The main investment line of Bosera Steady Heng Li is mainly based on dividend low wave,selected convertible bonds,and growth strategies.
It is reported that the dividend low wave strategy is based on dividend rate and historical volatility indicators to build a dividend low wave stock pool,select stocks with higher Alpha scores from multi-factor models,construct an investment portfolio weighted by dividend rate,and exclude targets with weaker performance and liquidity.
In terms of convertible bond selection,first filter out targets that do not meet the requirements in the convertible bond pool through credit rating and liquidity indicators,then use different logics such as volatility underestimation,price underestimation,high Alpha,and positive stock momentum,cross-verify with indicators with low correlation,and select individual bonds with price underestimation,good fundamentals,and short-term positive stock price movement.
The growth strategy is based on Bosera Fund's integrated investment research platform,selecting stocks with expected growth and exceeding expectations,which can form a certain complementarity with dividend low wave and convertible bond strategies.
Quantitative + Fixed Income to Build Low Wave "Fixed Income +"
As a new member of Bosera Fund's "fixed income +",the appointed fund managers of Bosera Steady Heng Li are Huang Ruiqing and Cheng Zhuo.Huang Ruiqing uses quantitative investment methods for equity investment,while Cheng Zhuo is responsible for fixed income investment,striving to achieve complementary advantages.Public information indicates that Huang Ruiqing has extensive experience in equity research and investment,with a proficiency in balanced allocation and an investment style leaning towards large-cap value.He also seeks and delineates the intrinsic logic of market operations from vast amounts of data,designing an underlying factor system and models by integrating a variety of data related to finance and fundamentals,ultimately constructing a diversified strategy system.
Furthermore,Huang Ruiqing employs quantitative methods to analyze the trends in changes of major contradictions such as market style during the investment process.By selecting appropriate strategies for different market phases,he is able to control risks more flexibly and achieve investment objectives.
Cheng Zhuo,who is responsible for fixed-income investments,possesses an interdisciplinary mindset and has comprehensive and in-depth research on the cyclical shifts of major asset classes.He explores market operation logic through various methods such as comparing different types of assets and is adept at thinking dialectically in reverse to uncover overlooked risks and opportunities in the market.
In terms of investment,Cheng Zhuo takes the coupon interest as the foundation,obtaining coupon alpha by deeply exploring industry and corporate micro-level targets.Relying on fundamental and major asset class linkage analysis,he grasps the economic cycle's pulse and keenly perceives opportunities and challenges to adjust the duration leverage in advance,thereby achieving the offensive and defensive transition in investment.
In the view of Bosera Fund,"fixed-income plus" products fill the gap between pure bonds and stocks,two major asset classes,and also represent the integration of the company's equity and fixed-income research departments' target mining,result sharing,efficient transformation,and risk control capabilities.
Regarding the subsequent trend of the bond market,the拟任 fund manager expressed that,overall,in a volatile market,high-grade credit bonds may present good opportunities for increased allocation during adjustments,and other duration-sensitive assets may be traded in bands with interest rate fluctuations.Before the recovery of the overall economic growth momentum,bond assets may be a better variety in the current major asset allocation.
