China Merchants Fund Hou Jie
In recent years, the "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 fluctuations, 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 management ballast stone.
At the beginning of this year, China Merchants Fund took the lead in creating the "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 reputation with strict drawdown control and better income, 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 golden 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 there is no fixed definition of "fixed income +". In overseas markets, it can add some bonds to the portfolio, 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 said 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 +" product, 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 offensiveness for the portfolio.
Dig deeper
It's a good time for stock valuations to be low and have positive changes
Hou Jie pointed out that when the "fixed income +" is operated, when to increase the stock allocation and how to increase it, it is a very test for the fund manager, which involves the problem of balancing returns and risks.
In simple terms, it can be summarized as "stocks add a little more at a low level, and stocks add a little less at a high level", but how to judge whether a stock is at a low or high level is a difficult thing. Of course, there are sometimes valuation poles, such as late 2007 and mid-2015, when the stock market was 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, there are some positive changes, which may be a better allocation point, so it is necessary to dynamically observe macro data, industry policies, etc.
He believes that the "fixed income +" products of different investment strategies have different operation methods for fund managers. Some fund managers don't choose the time, but are good at digging deeper into individual stocks. There is also a type of fund manager, in the case of market risk, the stock position is very low; but if there is an opportunity, it may be increased, or even half of the equity-debt ratio, which requires the fund manager's timing ability very high. Hou Jie said frankly that because he is relatively optimistic about the A-share market, he will usually maintain a relatively high position, and then take the initiative to reduce his position when he predicts the risk.
At the same time, he believes that 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 said that in the final analysis, this is a way to take into account the return and drawdown, and it is also the gold essence of "fixed income +" investment, as a "fixed income +" investment, it is to tap low-risk and high-yield opportunities.
Optimistic about banks, securities companies, epidemic recovery expectations, etc
Undervalued industries
Hou Jie believes that the current valuation of the equity market as a whole is 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 impact of foreign liquidity uncertainties, A shares in the fourth quarter will show a wide range of shock upward trend, but the possibility of a sharp strengthening of the market as a whole is unlikely. At present, the investment environment of the equity market is still relatively friendly, and he will continue to excavate individual stocks from the bottom up, adhere to the concept of long-term growth of the company, tap and capture the 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 valuations". For example, wealth management, short-term revaluation of the value of securities companies and subsidiaries, there are many points to see in the long run; the strength of Chinese securities companies and the gap between the United States is larger, and the rise of finance is also a manifestation of the rise of great powers; bank stocks also have opportunities, and the recognition of high-end customers for banks is still very high. For example, aviation, tourism, and hotels that have been damaged by the epidemic before the epidemic, many stocks have fallen to a lower market value than before the epidemic, which is unreasonable. An increase in the proportion of vaccinations can lead to the generation of herd immunity, and there are opportunities for correction in the industry.
