New Track "Red" Out Of "New Big Man" Head Public Fund "Fixed Income +" Echelon Takes Shape

A lot of fundamentalists are injured!

After a round of sharp market correction, the words "leek zero" (meaning leeks born after 1990) and "falling mother not recognizing" (meaning that the fund fell to the mother did not recognize) should be "Jing".

And in the market slump, the original one-day sold out fund issuance market, suddenly become a little bit sold out.

Since March, more than 10 funds have announced the extension of the fund-raising period, according to the 21st Century Capital Research Institute.

At this time, many investors prefer stable income products, and fund companies also increase the "fixed income +" layout.

Can the concept of "fixed income +" become popular, can it occupy the investment stage?

Concept of blowout

In fact, many fund companies have begun to lay out "fixed income plus" for a long time, but the real development of "fixed income plus" started last year.

The experience of a "fixed income +" fund manager since 2020 may well illustrate the great development of "fixed income +" in recent two years.

"Since 2020, the" fixed income plus "has developed rapidly. A few years ago, the total scale of the three "fixed income +" products I managed was only 1 billion, which increased to more than 4 billion in 2018. However, the scale of these three "fixed income +" funds has increased to 15 billion by 2020. " One of the earliest fund managers to do "fixed income +" products said.

In addition, the fund manager also issued four new "fixed income +" products in 2020, and another "fixed income +" product in early 2021.

Now the fund manager has managed more than 30 billion yuan.

"Since last year, the company's assessment of me has changed." Introduction of the fund manager.

In the past few years, the internal performance appraisal of fund companies is based on relative return. The fund manager manages the absolute return target product in "fixed income +". "For most of the years before that, I had little bonus," he said frankly

"In 2020, the company's assessment of me is all adjusted to see absolute income and withdrawal." The above fund managers said that last year, the company began to think that "fixed income plus" was also a great development direction, so it adjusted the assessment of "fixed income +" fund managers.

According to wind statistics, as of March 10, there were 1614 "fixed income +" funds on the market. The total scale at the end of last year was 1.32 trillion yuan.

Among them, there are 808 partial bond hybrid funds, accounting for 50% of the total amount of "fixed income +" funds; 646 secondary debt bases, accounting for 40%; and 160 primary debt bases, accounting for 10%.

2020 is a big year for the development of "fixed income +".

Wind data shows that by the end of 2019, the share of "fixed income +" funds was 436.1 billion, but by the end of 2020, the share of funds increased to 945.5 billion, an increase of 117%.

In 2021, the "fixed income plus" fund continued to accelerate its development.

According to wind data, 129 "fixed income plus" funds were newly established this year, with a total fund-raising scale of 167.8 billion, an increase of 18% over the end of 2020.

Regarding the great development of "fixed income +" in recent two years, Zhang Yajun, fund manager of e fund, said: "the demand for net value transformation of bank financial management is the biggest driving force to promote the rapid growth of" fixed income + "in the past two years, and a large number of financing funds are looking for alternative products. Because of the low risk preference of financing funds, there are certain requirements for the return of holding period. In the current market, the "fixed income +" is relatively close. "

"The experience of the past few years shows that if you want to continue to pursue a relatively stable return within a certain holding period, it is very difficult to rely on a single asset. However, through the way of stock and debt mixing, we can offset the fluctuation of a single asset in most of the time and obtain a relatively stable income. We think this may be the most core reason. In addition, the base interest rate is at a relatively low level, and the yield provided by bond assets is limited, and the enhancement of yield through equity and other means may also be a very important driving force. " Zhang Yajun said.

Moreover, the industry believes that the "fixed income plus" trend will continue.

"In the long run, we feel that the demand for such products as" fixed income + "may continue to exist. In essence, residents' low-risk asset allocation needs to be met."

Zhang Yajun pointed out that in the past period of time, including financial management, monetary funds and even real estate were used to meet the demand of low-risk asset allocation. However, with the low rate of return on money, the net value of financial management and the decrease of the value of real estate allocation under the condition of "non speculation of housing and housing", this part of asset allocation needs to find new exports. "Fixed income +" is a kind of products that are close to this demand in the risk return spectrum, so there will be continuous capital inflow into these products in the future.

"The proportion of individual investors may be higher, because a large part of" fixed income + "is actually the contribution of asset allocation switching." Zhang Yajun said.

Hua'an Fund believes that in the long run, investment products with low volatility, rising and falling resistance, represented by "fixed income +" products, will have long-term competitiveness and vitality, and will be an enduring investment variety in the future.

Gao Ying, director of pension investment of Ping An fund, pointed out that in the long run, the transfer of residents' wealth to the capital market is the general trend; in the short term, due to the impact of the epidemic, all kinds of assets around the world fluctuate greatly. For the sake of risk aversion, a lot of funds are pouring into "fixed income +" products, pursuing the allocation strategy of both attack and defense.

Cathay Pacific believes that the "fixed income +" products in 2021 will have a good development. The reason is that, from the perspective of underlying assets - bond assets, the current bond market fundamentals are gradually improving, and the interest rate level continues to rise by a small margin. 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.

Step differentiation of "fixed income +"

At present, the attitude of fund companies to lay out "fixed income +" is very positive. Since last year, many fund companies have made efforts to lay out "fixed income +" products. This year, many fund companies still make intensive declaration.

"The fund companies that issue" fixed income plus "products include both large-scale fund companies and small and medium-sized fund companies." Zhang Ting, chief strategist of Ge Shang financial management, said.

"Fund companies with strong fixed income and equity investment ability can naturally attract more funds, such as e fund, Penghua, Guangfa, Cathay Pacific, Boshi, etc. these fund companies have natural advantages." Zhang Ting said.

In fact, a large number of fund companies have issued many "fixed income +" products.

According to the latest data statistics of wind, at present, the scale of e fund's "fixed income +" products ranks first in the industry, with a total of 51 funds, with a scale of 181.3 billion yuan.

In addition, the first echelon of "fixed income +" scale also includes: China Southern Fund, with 56 "fixed income +" funds, with a scale of 62.9 billion yuan; Guangfa fund, 49 "fixed income +" funds, with a scale of 55.5 billion yuan; ICBC Credit Suisse, 39 "fixed income +" funds, with a scale of 53 billion yuan; China Merchants Fund, 42 "fixed income +" funds, with a scale of 45.7 billion yuan; Boshi fund, 46 "fixed income +" funds, The scale is 39 billion yuan; Penghua Fund has 45 "fixed income +" funds with a scale of 33.5 billion yuan; Huaxia Fund has 45 "fixed income +" funds, with a scale of 30.6 billion yuan.

The second echelon of "fixed income +" scale includes: Bank of China fund, with 24 "fixed income +" funds, with a scale of 29.4 billion yuan; Bank of communications Schroeder fund, 21 "fixed income +" funds, with a scale of 25.3 billion yuan; Ping An fund, 21 "fixed income +" funds, with a scale of 14 billion yuan; Tianhong fund, with 31 "fixed income +" funds, with a scale of 13.3 billion yuan; Cathay Pacific Fund, with 18 "fixed income +" funds, with a scale of 13.3 billion yuan; Cathay Pacific Fund, with 18 "fixed income +" funds, with a scale of 14 billion yuan There are 25 "fixed income plus" funds with a scale of 3.1 billion yuan.

Overall, the total scale of 1614 "fixed income +" funds in the market is 1.32 trillion yuan, belonging to 122 fund managers. The top 10 fund companies hold more than 635.6 billion yuan of "fixed income +" funds, accounting for about half of the total scale of "fixed income +" funds.

Among them, the scale of "fixed income +" funds of five fund companies exceeded 50 billion, and the scale of "fixed income +" funds of 10 fund companies ranged from 10 billion to 50 billion yuan.

Take e fund, which has the largest scale of "fixed income +" at present, as an example. According to Zhang Yajun, e fund's products with more "fixed income +" are secondary debt base and mixed products of partial debt with similar secondary debt base operation. Among them, the operation time of secondary debt base is longer and the overall stock scale is larger.

"In addition, the holding period products of quasi secondary bond base operation and mixed partial bonds were continuously issued in banking channels last year and this year. This area has grown very fast in the past year, and it is also the main increment of "fixed income +" Zhang Yajun said.

"At present, we have cooperated with different banking channels to issue fixed income plus products in the form of holding period. In the future, we will cooperate with more banking channels to issue similar products." Zhang Yajun said.

According to reports, in order to meet the needs of residents' asset allocation and transfer, e-fund's multi asset investment department also reorganized its internal structure last year, forming a strategy module group based on professional division of labor to provide more diversified sources of excess earnings. There are several strategy groups within the multi asset investment department to output the classification strategy.

For example, to mix stocks and bonds, we should first have a big map of the economy and asset prices. E fund has a macro asset group, which mainly grasps the position of economic cycle and valuation, and provides suggestions on asset allocation. At the same time, professional team division is carried out from bottom to top according to different underlying assets, including bond group, stock group, income enhancement group and fund group.

Different strategy groups, starting from their own professional ability, finally output a complete professional configuration scheme. On the one hand, the advantage of multiple sources of excess return is that it can better control the volatility, and when a certain strategy fails, the excess return of other strategies can make up for it; at the same time, after the diversification of excess return, it will not pursue a single asset or strategy too much to avoid the risk of "making the last cent".

China Southern Fund, whose strength of "fixed income +" is second only to e fund, said that in order to better develop "fixed income +", China Southern Fund has set up a new Department called "Mixed Assets Investment Department".

The purpose 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 a mixed asset 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. The establishment of new departments is conducive to better meet the needs Customer needs. Third, it is conducive to improving investment efficiency. "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.

Small and medium-sized fund companies also want to strive to develop "fixed income +", but their talent is limited. At present, a large number of small fund companies have very small number and scale of "fixed income +" products.

"If small and medium-sized fund companies want to break through and surpass, they still rely on long-term performance stability and sustainability. At present, the competition in the field of "fixed income plus" is quite fierce. Large, medium and small fund companies all want to take a share in this direction. " Zhang Ting said.

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