Before the holiday is the release season of the 2023 annual report of public funds, as we all know, the cold equity market last year made the overall investor sentiment relatively sluggish.
However, is the assertion that "funds do not make money" really true?
Let's start with the conclusion, in 2023, all bond funds under Guotai Fund will create a net profit of 4.258 billion yuan for investors, an increase of 132% over 2022.
(Source: Annual Report of the Fund; Data as of December 31, 2023. According to the first-level classification statistics of Wind, there are 58 bond bases participating in profit statistics in 2023 and 56 bond bases participating in profit statistics in 2022. The mainland fund has been in operation for a short period of time, and past performance is not indicative of future performance. ）
The outstanding earning power of bond funds is due to the excellent drawdown control and good performance of the products.
The average maximum drawdown of all bond funds under Guotai Fund in the past six months was -0.70%, which was better than the -1.05% level of the whole market in the same period. This is particularly difficult in the bond investment market, where risks are strictly controlled.
Cathay's fixed income fund has ranked ninth among large and medium-sized companies in absolute return in the past two years.
(Source: Cathay Fund, Wind, Haitong Securities; Data as of March 31, 2024. 1) The average maximum drawdown of bond funds in the whole market is calculated according to the arithmetic average of Wind first-level classified bond funds. Cathay has a total of 59 bond funds, of which 58 have been established for more than half a year. 2) The performance ranking of fixed income funds comes from Haitong Securities' "Equity and Fixed Income Asset Performance Ranking of Fund Companies", and Cathay Pacific ranks ninth among 30 large and medium-sized companies. Classification of large, medium and small companies: According to the average size of active fixed income in the past year in the scale ranking of Haitong Securities, and according to the scale of fund companies from large to small, among which the cumulative average active fixed income scale accounts for 50% of the total active fixed income scale of the whole market, fund companies are divided into large companies, between 50% and 70% are classified as medium-sized companies, and the rest are small companies, and small companies also include companies with the longest existing products established for less than 1 year. The mainland fund has been in operation for a short period of time, and past performance is not indicative of future performance. ）
Specific to the product, let's take a look at the performance of Cathay Pacific's idle money butler "profit" series of short-term bonds.
(Data source: Wind, data as of March 31, 2024, fund performance has been reviewed by the custodian bank.) The mainland fund has been in operation for a short period of time, and past performance is not indicative of future performance. ）
If the feeling of investment income in the above table is not intuitive enough, let's take a look at the 2023 annual report disclosure of the most direct data for investors to earn profits.
(Source: Annual Report of the Fund; Data as of December 31, 2023. The mainland fund has been in operation for a short period of time, and past performance is not indicative of future performance. ）
After reading the above data, I believe you have your own judgment on the assertion that "funds do not make money".
As of the end of 2023, the total scale of Cathay Pacific's idle money manager series products is 310.3 billion yuan, of which the scale of short-term bond and interbank certificate of deposit funds is about 45 billion yuan, providing diversified choices for investors.
(Source: Wind, Cathay Fund, size data as of December 31, 2023.) ）
Cathay Pacific's cash management team leverages the professional strengths of its members to develop a unified asset allocation strategy and implement it firmly. Looking back, during the bond market fluctuations from February to March, the end of June and the end of September 2022, the products managed by Cathay Pacific's cash management team all transitioned smoothly and obtained stable returns for holders.
Looking ahead, Cathay's cash management team believes that
Monetary policy
Based on the current macro fundamentals, monetary policy still does not have the basis for tightening, and the continuous promotion of the combined debt policy is also one of the key tasks this year, and the central bank is expected to maintain a loose and abundant liquidity environment. However, considering that the local bond issuance will be increased immediately in March, as well as cross-quarter and other factors, it is expected that the central fund interest rate will not fall sharply, and the fluctuation and stratification of funds at the end of the quarter may exist.
In terms of funding
The government work report mentioned that "continue to promote the downward trend of social comprehensive financing costs and maintain reasonable and abundant liquidity", combined with the continuous promotion of the debt policy is one of the key tasks this year, so the broad-spectrum interest rate is still in the channel of continuous reduction. The loose liquidity environment and strong allocation forces determine that there is no risk of directional reversal in the bond market, and the bond market is still promising, but the volatility may increase.
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Risk Warning
The performance and performance benchmark performance of the fund and all its similar funds from 2019 to 2023 mentioned in the article are as follows: Guotai Lixiang A (establishment date 2018/12/03, performance comparison benchmark is 80% * China Bond Total Wealth (1-3 years) index yield + 20% one-year time deposit interest rate (after tax), Tao Ran has been managed since 2020/07/07, Ding Shiheng has been managed since 2020/05/15): 3.09%/3.39%, 2.50%/2.37% ,4.40%/3.27%,2.60%/2.49%,3.27%/2.59%;Guotai Liyou A (Establishment date 2021/06/22, performance comparison benchmark is 100%*China Bond Composite Wealth (less than 1 year) Index yield, Tao Ran has managed since 2021/06/22): 2.20%/1.38%, 2.70%/2.34%, 3.55%/2.63%;Guotai Lize A (Establishment date 2021/ 08/31, the performance comparison benchmark is 80% * China Bond Total Wealth (1-3 years) index yield + 20% one-year time deposit interest rate (after tax), Tao Ran has been managed since 2021/08/31): 1.45%/0.97%, 3.00%/2.48%, 4.03%/2.59%;
Data source: Product periodic report, Cathay Fund, data as of 2023/12/31.
Risk Warning: The views in the article are for reference only and do not constitute any investment advice or commitment. As mentioned in the article, the product is issued and managed by Cathay Fund, and the agency does not assume the responsibility for the investment, redemption and risk management of the product. The fund manager undertakes to manage and use the fund assets in good faith, diligence and responsibility, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. All the products mentioned are bond funds, which have higher expected returns and expected risks than money market funds, but lower than hybrid funds and equity funds, and are products with lower expected risks and expected returns. Investment is risky, investors should carefully read the Fund's "Prospectus" and "Fund Contract" and other legal documents before making investment decisions, and choose the appropriate product according to their personal risk tolerance. Funds are risky and should be invested with caution.