Since the beginning of this year, the A-share market has fluctuated and adjusted, and the overall performance of the bond market has been relatively outstanding, with the yield of the CSI All-Bond Index exceeding 5% in the past year (data source: CSI Index, as of 2023.12.27). In this context, investors prefer more stable bond funds. This year, bond fund products accounted for more than 70% of the issuance, becoming the main force of new fund issuance. (Source: Wind, as of 2023.12.27)
Regarding the development tone of the bond market, Lin Yanbin of Bank of China Fund believes that it can be grasped from the three major directions of monetary policy easing, fiscal policy focusing on structural and stable growth policies. The bond funds under the Bank of China Fund, BOC Pure Bond and BOC Quarterly Enjoy, focus on bond assets, and strive to become a good choice for investors in the current market.
It is reported that BOC Pure Bond is a pure bond fund, which does not directly buy stocks, warrants, convertible bonds, etc. from the secondary market, nor does it participate in the subscription of new shares, convertible bonds and additional shares in the primary market. The fund is jointly managed by fund managers Lin Yanbin and Chen Wei, both of whom have many years of investment and research experience, and strive to pursue long-term steady appreciation of fund assets through active management of various bond varieties on the basis of strict risk control and maintenance of fund asset safety, and strive to obtain investment returns higher than the performance benchmark. It is understood that Bank of China Pure Bond adopts a combination of top-down and bottom-up investment strategy, focusing on strictly dividing the bottom position and the trading order, focusing on the allocation of high-rated credit bonds, and the trading market mainly through the large bank Eryonghe interest rate bonds to flexibly adjust the portfolio duration, and strive to have a good way to attack and defend the portfolio.
According to the third quarterly report of the fund, as of September 30, the total return of Bank of China Pure Bond A since its inception in December 2012 was 57.97%, the performance benchmark for the same period was 11.93%, and the excess return was 46.04% (data source: fund regular report, as of September 30, 2023). At the same time, Galaxy Securities shows that as of the end of November, Bank of China Pure Bond A ranked in the top 6% of its peers (72/1314) in the past year. (The same category refers to "Bond Fund - Pure Bond Bond Fund - Long-term Pure Bond Fund (Class A)", data source: Galaxy Securities, as of 2023.11.30)
Another bond fund managed by Lin Yanbin is a short- and medium-term bond product with 90 days of quarterly enjoyment. The Fund invests primarily in short- to medium-term bond assets, while not investing in equity assets, nor does it invest in convertible bonds (except for the pure debt portion of convertible bonds that can be detached) and exchangeable bonds. Specifically, Bank of China has a good liquidity for 90 days and mainly invests in bonds with a remaining maturity of less than 3 years, and the fund only selects high-rated pure bonds above AA+, striving to effectively reduce volatility and control drawdown.
Since its establishment, Bank of China Fund Management has given full play to the advantages of a bank-based fund company and gradually established a sound credit rating system. According to Haitong Securities, as of the end of the third quarter of 2023, the excess return of fixed income products of Bank of China Fund ranked first, ranking first among 15 large fixed-income fund companies in the past one year, and ranking second and third among 15 large-scale fixed-income fund companies in the past two and three years. (Source: Haitong Securities, "Excess Return Ranking of Equity and Fixed Income Assets of Fund Companies", as of September 28, 2023)
Performance review: BOC Pure Bond A was established on December 12, 2012, Chen Wei managed the fund on December 31, 2014, and Lin Yanbin managed the fund on August 24, 2021. The fund's return in the past five years/performance benchmark returns are 7.81%/4.79% in 2018, 4.12%/1.31% in 2019, 3.25%/-0.06% in 2020, 4.14%/2.10% in 2021, 0.72%/0.51% in 2022, 3.56%/1.22% in the first half of 2023, and 0.82%/0.01% in the third quarter of 2023. BOC Pure Bond C was established on December 12, 2012, and the fund's return in the past five years/performance benchmark returns in the past five years were: 7.31%/4.79% in 2018, 3.93%/1.31% in 2019, 2.97%/-0.06% in 2020, 3.85%/2.10% in 2021, 0.34%/0.51% in 2022, 3.43%/1.22% in the first half of 2023, and 0.77% in the third quarter of 2023 / 0.01%。 BOC Pure Bond D was established on May 25, 2023, and Chen Wei and Lin Yanbin have managed the fund since its establishment. Fund Return/Performance Benchmark Return: 1.42%/0.20% from inception to 30 September 2023.
Lin Yanbin is managing similar products: BOC Woxiang One-Year Regular Open Bond Initiation, which was established on May 9, 2022, and Lin Yanbin managed the fund on June 5, 2023. The fund returns/performance benchmarks are 1.36%/1.95% from inception to the end of 2022, 1.76%/2.64% in the first half of 2023, and 0.45%/0.68% in the third quarter of 2023.
Chen Wei has no similar products in charge for the time being. The same kind refers to "bond fund - pure bond bond fund - long-term pure bond bond fund", Galaxy Securities.
BOC Quarterly Quarterly Quarterly Subscription 90-Day Rolling Short and Medium Term Bond A was established on September 7, 2022, and Fan Jing and Lin Yanbin have managed the fund since its establishment. Fund returns/performance benchmark returns are: -0.93%/0.04% from inception to December 31, 2022, 3.11%/1.85% in the first half of 2023, and 1.21%/0.51% in the third quarter of 2023, respectively. BOC Quarterly 90-Day Rolling Short and Medium Term Bond C was launched on 7 September 2022, with fund returns/benchmark returns of -0.99%/0.04% from inception to 31 December 2022, 3.01%/1.85% in the first half of 2023, and 1.17%/0.51% in the third quarter of 2023.
Neither fund manager manages any similar products. The same category refers to "bond fund - pure bond bond fund - medium and short term pure bond bond fund", Galaxy Securities.
Data Description:
According to Haitong Securities: Equity and Fixed Income Asset Performance Ranking of Fund Companies, the absolute return of fund management companies refers to the growth rate of the net value of active funds managed by fund companies weighted by the scale of assets under management during the period. The size of assets under management for the period is simply averaged according to the available period size.
Classification of large, medium and small companies: According to the average size of active equity (active fixed income) in the past year in the scale ranking of Haitong Securities, and sorted according to the scale of fund companies from large to small, among which the cumulative average active equity (active fixed income) scale accounts for 50% of the total market active equity (active fixed income) scale of fund companies are divided into large companies, in the range of 50%-70% The division is divided into medium-sized companies, and the rest are small companies, and small companies also include companies with the longest surviving products that are less than 1 year old. Source: Wind, Haitong Securities Research Institute
Risk Warning: Investment is risky, under the influence of market fluctuations and other factors, the fund investment may be lost, and in a few extreme cases, the entire principal may be lost. The fund manager does not guarantee that the fund will be profitable, nor does it guarantee a minimum return, the past performance of the 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. Before investing in a fund, investors should read the fund's prospectus, fund contract, product key facts statement and other legal documents in detail to understand the specific product situation and judge whether the fund matches its risk tolerance according to their own circumstances. The views expressed and the information presented in this document are general in nature and do not relate to the specific investment target, financial situation or any particular needs. The views expressed in the document do not constitute investment advice or any other advice and are subject to change as circumstances change. This document does not contain any express or implied approach to the portfolio or trading strategy. This material does not constitute any advice, recommendation, offer, invitation or solicitation to buy or sell financial products, instruments or trading strategies. This document has not been prepared in connection with any similar offer. Unless otherwise indicated, all information contained in this document is current at the time of use and does not guarantee the accuracy, completeness or up-to-date nature of the information cited in this document and should not be relied upon in relation to the above. The fund manager and the shareholders are subject to a business segregation system, and the shareholders do not directly participate in the investment and operation of the fund property.
Source: Bank of China Asset Management
Disclaimer: This article is a reprint and does not represent the position of this journal and does not constitute investment advice.