China Merchants Fund Hou Jie: The gold essence of "fixed income +" is to tap low-risk and high-yield opportunities

In recent years, fixed income + products with secondary debt-based and partial debt hybrid funds as the main stream have created incomes that surpass the Shanghai Composite Index with lower volatility, and the cost performance is higher. At the same time, due to the accelerated transformation of bank wealth management products, more and more investors are considering adjusting the allocation of bank wealth management funds to non-monetary public funds. In this case, the fixed income + fund characterized by low drawdown and steady return has become the preferred alternative to bank wealth management products, and has also become the choice of more and more investors, playing the role of family financial ballast stone.

At the beginning of this year, China Merchants Fund took the lead in creating a "Rui" brand fixed income + represented by China Merchants Ruiqing, China Merchants Ruiwen, China Merchants Credit Suisse, China Merchants Ruide and China Merchants Ruiyang in the market, and established a market brand and word of mouth with strict drawdown control and better returns, which was recognized by major channels. As a representative of the "Rui" brand fixed income + strength portfolio, Hou Jie, the fund manager who manages China Merchants Ruiyang and China Merchants Ruide, frankly said that the gold essence of "fixed income +" is to tap low-risk and high-yield opportunities, and he will use fundamental research + trading skills to control the combination drawdown, bringing customers a better fixed income + investment experience.

The ratio of stocks to bonds in "Fixed Income+" is dynamically adjusted

Hou Jie believes that in fact, there is no fixed definition of "fixed income +", in overseas markets, it can add some bonds to the portfolio, but also some stocks, and even some commodities. For investors of "fixed income +", the main purpose is to pursue relatively safe returns while increasing income by adding stocks and other ways. However, everyone's tolerance for volatility is different, and generally speaking, it is still desirable to reduce volatility as much as possible while increasing earnings.

Hou Jie shared some of his experiences in "fixed income +" investment. He pointed out that many people are concerned about the proportion of equity and debt in the "fixed income +" product, but in fact, there is no fixed model, and dynamic adjustments will be made according to the market conditions of the stock and bond market. For example, china merchants fund's "Rui" brand fixed income + products, the company provides unified investment and research resource support, flexible large-scale asset allocation, allocation strategy according to the equity-debt risk-return ratio within the risk limit dynamic optimization adjustment; on the basis of large-scale asset allocation, select individual stocks, and further strive to provide drawdown protection and aggression for the portfolio.

It is a good time to dig deep into the low valuation of stocks and positive changes

Hou Jie pointed out that "when the operation is increased, how to increase the stock allocation, it is very challenging for the fund manager, which involves the balance of returns and risks."

In simple terms, it can be summarized as "the stock is added a little more at the low level, and the stock is added a little less at the high level", but when to judge the stock at the low level and when to judge that it is at the high level, it is a difficult thing in itself. Of course, there are sometimes valuation poles, such as late 2007 and mid-2015, the stock market is significantly overvalued, and it may be easier to make decisions. But most of the time the market is not extreme. Overall, when the valuation of the stock market is relatively low and there are some positive changes, it may be a better allocation point, so it is necessary to dynamically observe macro data, industry policies, etc.

He pointed out that the "fixed income +" products of different investment strategies have different methods of operation for fund managers. Some fund managers will not be particularly timely, but good at digging deep in individual stocks, there is a type of fund manager, it is possible that in the case of market risk, the stock position is very low, but if there is an opportunity, it may be increased, and even the proportion of equity and debt is half, which requires a very high time-timing ability of the fund manager, Hou Jie frankly said, because he is relatively optimistic about the A-share market, usually will maintain a relatively high position, and then take the initiative to reduce the position when the risk is prejudged.

At the same time, he shared his feelings: it is very important to select individual stocks from the bottom up. When tracking plates on a daily basis, he will spend more energy tracking some of the larger declines to find out whether they will change fundamentally at low levels. He pointed out that in the final analysis, this is a way to take into account the return and drawdown, but also the gold essence of fixed income + investment, as a "fixed income + " investment, that is, to tap low-risk and high-return opportunities.

Optimistic about banks, securities companies, epidemic repair expectations and other low-valued industries

Hou Jie believes that the current equity market valuation is generally reasonable, the domestic economy is facing certain pressure, domestic liquidity is still within a reasonable and sufficient range, but at the same time facing the uncertainty of foreign liquidity, A shares in the fourth quarter will show a wide range of upward trend, but the overall market is unlikely to be significantly stronger. At present, the investment environment in the equity market is still relatively friendly. Equity investment He will continue to focus on bottom-up individual stock mining, adhere to the company's long-term growth, tap and capture investment opportunities of leading companies in the industry, and do a good job of balanced allocation and drawdown management.

At the time of the index shock, Hou Jie also shared the industries and sectors that he is currently concerned about "positive changes under low valuation". For example, wealth management, short-term brokerage and subsidiary value revaluation, there are many points to see in the long run, the gap between China and the world is manifested in many aspects, military, medical, semiconductor, etc., finance is also, the strength of Chinese securities companies and the United States than the gap is very large, the rise of finance is also a manifestation of the rise of great powers, bank stocks also have opportunities, high-end customers still have a high degree of recognition of banks. For example, aviation, tourism, hotels that have been damaged by the epidemic before, many stocks have fallen to a lower market value than before the epidemic, which is unreasonable, as the proportion of vaccination increases, herd immunity can be generated, and there is an opportunity for correction in the industry.