The B Side Of The Fund

Since last year, "fixed income plus" strategic products have suddenly become a new investment force in the public offering sector.

At present, there is no authoritative statistical data of "fixed income +" strategy products.

According to wind data, the 21st century economic reporter roughly estimates that there are more than 2000 "fixed income plus" funds (including partial bond hybrid funds, flexible allocation hybrid funds with less than 30% stock positions, mixed bond secondary funds, and hybrid bond type primary funds) in the market, with a scale of about 1.68 trillion yuan by the end of 2020.

According to wind data, there are 56 "fixed income +" funds set up in the first two months of the year (AC share calculation). They are mainly partial debt hybrid funds, and there are a small number of secondary debt bases. The total scale of raised funds is 138.983 billion yuan, which is 387% higher than that of 28.558 billion yuan in the same period of last year.

"Fixed income +" is a new concept for investors. So, what is "fixed income +"? Why is "fixed income +" so popular? How about the performance of "fixed income +"? How do fund companies lay out "fixed income +"?

The change of marketing concept of "fixed income +"

In the interview and investigation of the top 20 public fund companies by 21st century economic reporter, it is found that fund companies have no precise definition of "fixed income +" fund. However, at present, there is a consensus on "fixed income +" fund, which generally refers to the pursuit of basic income through the main investment in fixed income assets, while selecting equity assets or increasing income through aggressive strategies, Products to achieve the investment goal of "steady progress".

"Fixed income +" is the most common fixed income products such as bonds.

The "+" part is more diverse, such as + stock, + stock index futures, + strike new, + fixed increase, + convertible bond, + increase index fund, + fixed term private placement, + block trading, etc. the primary bond base, secondary bond base and partial bond hybrid fund in public funds can be said to be the representative of "fixed income +" products. In addition, it also includes a part of "fixed income assets account for a large part + a small part of equity assets" In addition, it is also a flexible allocation fund and fof fund.

According to a long-term fund manager responsible for "fixed income +" strategy products, the fixed income + strategy focuses on the investment process rather than the investment results. From the result, fixed income + can be divided into absolute income and relative income.

Gao Ying, director of pension investment of Ping An fund, said that "fixed income +" products are usually based on bond assets and matched with a certain proportion of equity assets, so as to improve the yield level after portfolio risk adjustment. "Fixed income +" products have both attack and defense, which not only meets the investors' demand for fixed income in the volatile market, but also satisfies the investors' expectation of pursuing higher returns through the allocation of large categories of assets.

"Solid income +" suddenly hot B side

The boom of "fixed income +" began in 2020. The great turbulence of equity market under the epidemic situation and the poor performance of bond market led to the development of "fixed income +".

Although "fixed income +" is a new concept, many old products can be included in this scope.

According to wind data, there are 2203 "fixed income +" funds, about 1680.726 billion yuan.

Specifically, there are 788 hybrid funds with a scale of 641.854 billion yuan by the end of 2020;

610 hybrid funds (the stock market value accounts for less than 30% of the net asset value of the fund) are flexibly allocated, with a scale of 386.086 billion yuan by the end of 2020;

There are 159 hybrid bond type first-class funds, with a scale of 107.739 billion yuan by the end of 2020;

There are 646 hybrid bond type secondary funds, with a scale of 545.047 billion yuan by the end of 2020.

It is worth noting that after the great development of "fixed income plus" last year, this year's "fixed income plus" has been booming.

As of February 26, a total of 56 "fixed income plus" funds have been set up this year, with a total scale of 138.983 billion yuan, a sharp increase of 387% compared with 28.558 billion yuan of the same period last year.

Among them, Hua'an Tianli held two funds in six months and Guangfa Hengxin held in one year, with the raising scale reaching 11.551 billion yuan and 10.288 billion yuan respectively, both exceeding 10 billion yuan; Jiashi Puying's one-year holding, Ping'an's steady growth and e-fang's Dayue Hong's holding for one year were respectively 9.685 billion yuan, 8.776 billion yuan and 8.11 billion yuan respectively; in addition, gf's balanced growth and BOC shunze's return one-year holding were also regulated The module is more than 5 billion yuan.

Since last year, there is a logic behind the sudden explosion of "fixed income +".

Shao Kai, deputy general manager of Boshi fund, said, "from the perspective of major asset allocation, fixed income + products are mainly bonds, plus part of equity, in order to strive to increase the income of holders while bearing certain fluctuations."

"In the context of the gradual shrinkage of high-yield assets and the net value of financial products, residents will derive a huge demand for products of" low volatility + moderate income thickening ". In this environment, fixed income + products are a blue ocean with broad space." Shao Kai judged.

Cathay Pacific believes that the "fixed income +" products in 2021 will have a good development. From the perspective of underlying assets - bond assets, the current bond market fundamentals are gradually improving, and the interest rate level continues to rise slightly. It is expected that there will be a downward trend in the second half of the year. Therefore, in addition to the coupon income of the bond itself, there will also be a return on capital gains brought about by the downward coupon. Thus, the bottom position of the portfolio will perform well. From the perspective of "+" equity assets, the A-share market is expected to bring certain excess returns to the portfolio.

"On the whole, in 2021, the stock bond trend is still seesaw, and the allocation of stock and debt should be more balanced; moreover, looking back on history, when the seesaw effect is obvious, the return of" fixed income + "product index is better." Said Mao leisurely, deputy general manager of Jingshun Great Wall.

Huaxia Fund pointed out that the "fixed income +" class of stable income products has broad prospects for future development. Bank financial products characterized by "expected income determination" are currently an important part of the total wealth of residents. The transition period of new asset management regulations will end at the end of this year. Under the general trend of restricting non-standard and net value transformation, the overall yield of bank financial products may be greatly affected, and many customers have begun to look for alternative products. With the advent of the era of long-term low interest rates, the return on monetary assets has gradually decreased, the high-yield assets such as real estate and trust have decreased significantly, and the simple stock market fluctuates greatly. All these promote the "fixed income +" type of stable income products to regain the trend attention of investors.

Income performance evaluation of "fixed income +"

According to the wind statistics, the income performance of "fixed income +" is very stable.

Typical representatives of "fixed income +" - partial bond hybrid fund, flexible allocation hybrid fund (stock position less than 30%), mixed bond secondary fund and hybrid bond type first class fund, their average returns since this year (2021-1-1 to 2021-3-3) are 1.26%, 1.65%, 0.80% and 0.21%, respectively.

When the market falls sharply since the year of the bull (2021-2-18 to 2021-3-3), their average returns are - 1.41%

-1.29%、-0.73%、0.73%。

If the time is extended to one year, the revenue of the above "fixed income +" strategic products will be 14.40%, 17.08%, 9.60% and 4.71% in 2020.

If compared with the partial stock hybrid fund, "fixed income +" is very prominent.

The average return of partial stock hybrid funds this year (from 2021-1-1 to 2021-3-3) is 1.77%, slightly higher than that of "fixed income +" strategy products.

However, when the market falls sharply since the bull year (2021-2-18 to 2021-3-3), the average return of partial stock hybrid funds is - 7.64%, and the decline of "fixed income +" strategy products is far less than that of partial stock hybrid funds, and even the return of hybrid bond type primary funds can maintain positive returns in the stock market crash.

If the time is extended to one year, the average return of partial stock hybrid funds will reach 58.38% in 2020, far higher than the increase of "fixed income +" strategic products.

If the comparison object is bond fund, its average return this year (2021-1-1 to 2021-3-3) is 0.33%; when the market falls sharply since the bull year (2021-2-18 to 2021-3-3), the average return of bond fund is 0.05%; in 2020, the average return of bond fund is 4.10%.

Overall, since this year, and throughout last year, the average yield of "fixed income +" strategy products is higher than that of bond products. However, when the market falls sharply, the performance of "fixed income +" strategy products is not as good as that of bond funds.

In short, in the long run, the income of fixed income + fund is less than that of equity fund, but greater than that of fixed income fund; and when the market falls sharply, the income of fixed income + fund is often between equity fund and fixed income fund.

China Southern Fund points out that, compared with bond funds, bank financing, and even the so-called risk-free asset trust, the fixed income + fund has a higher yield.

"Compared with the risk, we generally use the withdrawal index to observe the risk. In fact, the withdrawal of fixed income + products is much smaller than that of stock funds. At the same time, the bond market in the first two months due to the problem of credit default also appeared certain adjustment. In terms of comprehensive risks and benefits, it is possible that fixed income + products are relatively high, which is an important reason why fixed income + is very popular this year. " South Fund pointed out.

Fund companies to find out

According to the reporter's understanding, at present, many fund companies are vigorously layout "fixed income +".

In order to better develop fixed income +, China Southern Fund has set up a new Department called "Mixed Assets Investment Department".

According to reports, the core of the establishment of the mixed asset investment department of China Southern Fund is to meet customer needs and improve investment efficiency. First, the investment scope of fixed income + products covers stocks and bonds, and the establishment of Mixed Assets Department is conducive to internal management; second, there are many types of fixed income + products, and stock index futures, treasury bond futures and commodity futures may be gradually integrated in the future. Both individuals and institutions have more and more strong demand for fixed income + products, and the establishment of new departments is conducive to better meet the needs of customers It is conducive to improving investment efficiency.

Among them, fixed income + investment needs the support of various professional teams in the allocation of large categories of assets, such as fixed increase, convertible bonds, block trading, stock index futures, etc., to provide better services for fund managers.

"In the future, fixed income + is the focus of the company's development, and we hope to make features in the fixed income + product line. In the future, we will continue to improve the fixed income + product line according to the needs of investors, and continue to expand the company's ability in fixed income plus. "

According to China Europe Fund, the "fixed income +" product matrix is divided into lower risk "fixed income +" (such as China Europe Qihe), stable "fixed income +" (such as China Europe double interest) and active "fixed income +" (such as China Europe convertible bonds).

According to CITIC Prudential fund, the company has set up a special department to be responsible for "fixed income +" product investment. At present, it has formed a complete product series covering primary debt base strategy, secondary debt base strategy, mixed partial debt strategy and innovation strategy.

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