During this period, the uncertainty of the market has increased, and investors who buy bonds and stocks have more or less concerns. On the one hand, the uncertainty of A-shares makes it easy for everyone to take a wait-and-see attitude as soon as it reaches 3,000 points; On the other hand, the bull market in the bond market for many years has also fluctuated, and it is easy to worry about the future direction of the bond market. In this context, hybrid bond products have become an investment option worth paying attention to.
At the current point in time, hybrid bond products are more cost-effective
Why is a hybrid bond strategy worth paying attention to today? In the market environment since the beginning of this year, the bond market has been strong for a long time, and there are investment opportunities in some sectors of the A-share market amid fluctuations. In this context, hybrid bond products that combine stocks and bonds show high investment value for money.
And generally speaking, in the volatility of the stock and bond markets, diversified asset allocation can help diversify risks. Judging from the historical trend of the stock market and bond market in the past decade, we can see that the Shanghai Composite Index and the CSI Total Bond Index have a "seesaw effect of stocks and bonds". Then, through the diversified asset allocation of the hybrid bond strategy, investors can diversify a part of their funds into assets such as stocks and bonds with low correlation, which can help hedge the risk of sharp fluctuations in a single asset and improve the risk-return ratio of the entire portfolio.
Then we look at the fund performance data of the past ten years, and we find that the hybrid bond strategy seems to find a balance between pure debt and equity funds. The annualized average return, annualized volatility and maximum drawdown of the fund index under this strategy have performed well, which not only helps to smooth the violent fluctuations of equity assets, but also has better returns than pure debt assets.
The secondary bond base is preferred in a volatile market
In the above-mentioned fund index market performance in the past decade, the secondary bond base is a good example of hybrid bond products. This type of fund uses a combination of fixed income assets and equity assets, which can attack and defend. Judging from the historical data of the past ten years, the rise of the secondary bond base is higher than that of those funds that only invest in bonds most of the time, and except for 2022, the risk control in other years is also good, and the drawdown is also low, showing a relatively good risk-return ratio.
The good performance of this secondary bond base is inseparable from its structural composition, which generally depends on the ratio of fixed income and equity assets in the product. This product usually allocates about 80%-100% of the funds to low-risk fixed income assets, such as treasury bonds and interest rate bonds, and then allocates the remaining 0-20% of the funds to equity assets with higher flexibility, such as stocks and convertible bonds. Such an allocation can not only help to strictly control the risk of funds, but also strive for more returns when the market improves.
Therefore, a reasonable asset allocation can help to reap certain returns and reduce the volatility of the portfolio. So for ordinary investors, stocks and bonds are undoubtedly two more important types of assets, if stocks and bonds are matched with a certain proportion, you will find that a reasonable allocation of stocks and bonds can reduce volatility while improving the risk-return ratio, we look at the Sharpe ratio, the "19 portfolio" and "28 portfolio" of stocks and bonds are more cost-effective.
The Sharpe ratio of different equity-bond ratios from 2005 to 2023 is derived from the manager's promotional materials, of which the data comes from wind, and the Sharpe ratio calculation period is yearly, as of 20231231.
Pure Enhancement A is worth paying attention to
At present, a secondary bond base like Chunhou Tianyi Enhancement A uses interest rate bonds and medium and high-grade credit bonds as the bottom position, strictly controls credit risks, strives for low drawdown, flexibly adjusts duration, and trades moderately. Then, through 0-20% equity positions, we select stocks with excellent business models from the bottom up, balance and diversify allocation, and strive to enhance returns. Such an investment strategy makes it ideal for investors who are looking for low risk and don't want to lose their elastic returns.
And from the perspective of income performance, the pure and beneficial enhanced bond A with a reasonable combination of stocks and bonds has performed well in the market, with a net value growth rate of 5.65% since its inception (20230426-20240619), and the performance benchmark for the same period is 2.76%, especially since this year, it has achieved relatively good returns for investors.
Since the establishment of Chunhou Tianyi Enhanced Bond A (20230426-20240619), the curve chart income and performance benchmark data are from Hang Seng Juyuan Data and have been reviewed by trusteeship. The effective date of the contract for this product is 20230426, the above data is as of 20240619, and the picture is compiled from the private placement network; Among them, the performance comparison benchmark is: the yield of the China Bond Composite Full Price (Total) Index ×90% + the yield of the CSI 300 Index ×5% + the yield of the CSI Hong Kong Stock Connect Composite Index (RMB) ×5%; Since its inception (20230426-20240331), the benchmark rate of return on fund income and performance comparison has been 3.64%/1.45%, respectively, and the data comes from the regular report for the first quarter of 2024 disclosed by the fund manager.
The mainland fund has been in operation for a relatively short period of time and does not reflect all stages of the development of the stock market. Past performance of a fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund.
The success of Pure Gain, Enhancement A, and of course, the management of senior fixed income and equity investment managers. Chen Wen, the fund manager, is the director of the equity investment department of Chunhou Fund, with 13 years of investment research experience, and does not bet on market style and pursues sustainable returns. As the fixed income fund manager of Chunhou Fund, fund manager Jiang Wenjun has 8 years of investment experience, strictly controls credit risks, and grasps the cycle with the trend.
Previous fund managers: Jiang Wenjun (20230426-present), Chen Wen (20230426-present), data from the fund's Q1 2024 periodic report.
On the whole, Chunhou Tianyi Enhanced Bond A has two powerful fund managers at the helm, with fixed income and equity enhancement, which is the "Tianyi" choice for asset allocation.
Risk disclosure: The views (if any) of the fund manager, fund manager and the author involved in this article do not represent any position of the platform and do not constitute any investment advice.
Investment is risky, and mainland funds operate for a relatively short period of time and do not reflect all stages of the development of the stock market. The past performance of the fund in this information is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund, and our company does not promise or predict the future return of the product by express, implicit or any other means. Investors should pay careful attention to various risks, carefully read the fund contract, fund product key facts statement and other sales documents, fully understand the risk-return characteristics of the product, and make investment decisions according to their own circumstances, and be responsible for their own profits and losses in investment decisions.
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