In the volatile stock market in 2021, “fixed income +” fund is one of the most popular product types in the market. According to the latest data released in the fourth quarter report of 2021, the scale of “fixed income +” funds in the whole market has approached the threshold of 2 trillion yuan. Since this year, under the situation of repeated market shocks, “fixed income +” fund has once again become a hot spot. Is it still a good time for ordinary investors to allocate “fixed income +” funds? How to deal with this year’s market?
“fixed income +” fund is favored again
Under the situation that the volatile market has become the norm, the “fixed income +” fund, which bases on fixed income investment and obtains performance flexibility based on equity assets, has become a hot spot in the market. According to the data of the fourth quarter report of 2021, in the volatile market of the securities market in 2021, the scale of “fixed income +” fund surged by 950 billion yuan, and the total management scale has approached 2 trillion yuan.
By the end of 2021, e fund with the largest scale of “fixed income +” fund management in the whole market was e fund, reaching 408.9 billion yuan; The second is China Merchants Fund and South Fund, with the management scale of more than 100 billion yuan, reaching 144.2 billion yuan and 107.6 billion yuan respectively.
At present, the “fixed income +” fund has once again become the darling of the market. Since this year, the equity market has continued to explore, “balance” has become a new direction for some fund companies to layout products and release investment and research strategies. Many fund managers said that in the future, while the Nuggets bond market and stock market opportunities, more emphasis will be placed on balancing returns and risks.
The reporter noted that in terms of stable income products, since January this year, some large and medium-sized fund companies are actively working in the field of “fixed income +”, such as Huaxia Fund, Harvest Fund, China Merchants Fund, Wells Fargo fund, South Fund, Boshi fund, etc.
Specifically, on January 10, China Merchants Fund’s “fixed income +” Rui “series of new products – China Merchants Ruixiang 1-year holding hybrid fund was officially put on sale; On January 18, in order to continue the layout of “fixed income +”, Jingshun Great Wall Huacheng robust 6-month holding hybrid fund was issued; On January 26, the first “fixed income +” new fund of Wells Fargo fund in 2022 was officially launched, which is planned to be led by Huang Jiliang, assistant general manager of Wells Fargo fund and general manager of fixed income investment department.
From the perspective of new development funds, by the end of 2021, 355 new “fixed income +” funds had raised nearly 500 billion yuan, with a year-on-year increase of more than 40%. In addition, according to wind data, by the end of 2021, the number of “fixed income +” funds had exceeded 1000, reaching 1066; The total scale of “fixed income +” funds under 136 fund managers was 1.95 trillion yuan, approaching the threshold of 2 trillion yuan, with a year-on-year increase of 951.7 billion yuan, nearly doubling the year-on-year increase.
“fixed income +” what exactly is “+”?
What is “fixed income +”? As the name suggests, this kind of product consists of two parts: “fixed income” part and “+” part. It is understood that at present, the secondary debt based and partial debt hybrid funds are generally classified as “fixed income +” funds in the industry. Some analysts pointed out that the fixed income part refers to bond assets with high certainty and very low risk, which may include government bonds, local government bonds, policy financial bonds, central bank bills and medium and high-grade credit bonds. In addition to bond investments, the “+” part includes risk assets that can thicken the return of the portfolio. There are a wide range of strategies in this part, including stocks, stock index futures, treasury bond futures, new share subscription, fixed increase, convertible bonds, etc.
“For public funds, ‘fixed income +’ is mainly bonds + stocks and convertible bonds with equity attributes,” Yang Jie, fund manager of jinxinminda, told the information times In his opinion, unlike the general stock and bond funds, which mainly pursue relative returns, “fixed income +” funds mostly pursue absolute returns, so fund managers are also required to have better pullback control ability. “The ‘fixed income +’ fund involves multiple product categories and needs a strong macro vision, good asset allocation ability and timing ability.”
Yang Jie said that the “fixed income +” strategy is suitable for stable investors who have certain requirements for principal safety and yield. The strategy of “low volatility and high yield” aims to meet the demand of investors, while the strategy of “low volatility and high yield” aims to meet the demand of investors.
The reporter learned that at present, the main product forms of “fixed income +” funds include partial debt hybrid funds, secondary debt funds and pure debt funds partially invested in convertible bonds. From the perspective of investment direction, it is generally dominated by bonds plus equity and convertible bonds. In addition, there are new stocks and alternative assets, such as options and futures. For example, the “fixed income +” products of Jinxin fund mainly include secondary bond funds and pure bond funds partially invested in convertible bonds. Secondary bonds are mainly invested in bonds (including convertible bonds), stocks and other varieties, such as jinxinminwang bonds. Pure bond funds mainly invest in interest rate bonds, credit bonds and convertible bonds, such as jinxinminda pure bonds.
how to choose “fixed income +” fund?
Since this year, the A-share market has continued to fluctuate and its style has changed in many ways. So, how should ordinary investors respond? Is the opportunity in 2022 in the stock market or the bond market?
Li Yiwen, general manager of Jingshun great wall mixed asset investment department, believes that the macro policy in 2022 has actually changed, and the relatively tight credit environment in the early stage has changed to steady growth. The view of the bond market is neutral, and the whole may be volatile. From the perspective of stock index, the stock market may perform better than 2021, and the excess return may still come from the stock market.
Yang Jie, fund manager of jinxinminda, said that at present, the countercyclical adjustment of China’s monetary policy has been strengthened, and the central bank has successively reduced the reserve requirement and LPR interest rate (quoted interest rate in the loan market). The bond market is facing a better macro policy environment. “The stock market faces the possibility of style switching in the short term, and the tightening of overseas monetary policy may have a certain impact on risk appetite. From the perspective of the price performance of stocks and bonds throughout the year, the overall price performance of stocks is stronger than bonds, the overall valuation of stocks is at a relatively reasonable level, and the absolute yield of bonds is at a relatively low historical level. Convertible bonds face the contradiction between high valuation and large capital inflow, After the future valuation is fully digested, there are still good investment opportunities. “
Liang Xiaoman, chief researcher of Ruirong assets, told reporters that the probability of 2022 is a structural market, which means that the stock market has opportunities, but it is difficult to make money. At the same time, overseas interest rate hikes are expected to heat up, and there are great opportunities to invest in the financial bond base and Monetary Fund of interest rate bonds and short-term bonds.
In the view of insiders, “fixed income +” fund has strong anti risk ability in the short term and good profitability in the long term. In Liang Xiaoman’s view, “fixed income +” can be expressed in the form of bond funds or partial debt hybrid funds. The risk rating of sales institutions is generally medium and low risk or medium risk, which is suitable for prudent investors who do not actively allocate assets. “The advantage is that the risk is lower than that of stock funds, the income is higher than that of pure debt funds, and in theory, they can advance, attack and retreat.”
According to the data of Hithink Royalflush Information Network Co.Ltd(300033) , from the perspective of nearly one year, only 148 of the 1066 “fixed income +” funds have an annualized return of loss. The number of funds with an annualized return of 3% ~ 5% is 156, while the number of funds with an annualized return of more than 5% is 433. When the time is extended to two years, there are only 24 funds with an annualized yield loss, while the number of funds with an annualized yield of more than 5% rises to 635.
So, how should investors choose “fixed income +” funds? GUI Haoming, chief market expert of Shenwan Research Institute, believes that the most important thing is to see the balance ability of fund managers and effective asset allocation ability. In addition, investors should not only look at the strength of the fund manager team, the ability of fund managers and the allocation of products, but also choose appropriate products according to their risk tolerance and investment philosophy.
