With the strong demand for asset allocation by institutional investors and the increasing acceptance of individual investors, the market value of bond index funds has been further recognized by the market, and the number and scale have both expanded since the beginning of this year. Analysts believe that in the context of falling interest rates and policy support, more and more investors have begun to allocate such products, which is expected to continue to bring incremental funds to them and help them continue to explode. In recent years, the fixed income team of Penghua Fund has actively shaped the brand of passive products, positioned as a "bond index expert", built an investment and research team of fixed income instrumental products with outstanding strength, and has gradually developed into a bond index investment solution provider.
Looking back on the first quarter of 2024, the overall performance of Penghua Fixed Income's bond index fund is remarkable, whether it is on the long-term performance list of authoritative institutions or on the five-star rating list of products, Penghua Fixed Income's products can be seen. In addition, bond ETF products represented by Penghua CSI 5-Year Local Government Bond ETF (159972) and Penghua CSI 0-4 Year Local Government Bond ETF (159816) have attracted market attention for their uniqueness and scarcity.
Historical performance leads
Five-star dominance leads in profitability
According to Galaxy Securities' "Long-term Performance Ranking of Public Funds", as of the end of the first quarter of 2024, a total of 3 bond index funds are among the top 10 of the same kind. In terms of bond ETF funds, Penghua CSI 5-year local government bond ETF ranks 4/12 and 5/17 respectively in the same category by virtue of its high net value growth rate in the past 3 years and 1 year. In terms of interest rate bond index bond funds (Class A), Penghua China Bond 3-5 Year CDB Bond Index A (008956) ranks 9/83 in the same category due to its high net value growth rate in the past three years. In terms of interbank certificate of deposit AAA index funds, the 7-day holding period (014437) of Penghua CSI Interbank Certificate of Deposit AAA Index ranks 3/45 in the same category with a high net value growth rate in the past year.
In the recent product ratings released by authoritative fund evaluation agencies, Penghua 0-5 year interest rate initiation bond A (008040) was rated as a three-year five-star rating by Tianxiang Investment Advisors and Galaxy Securities, and Penghua CSI 0-4 year local government bond ETF (159816) was rated as a three-year five-star rating by Tianxiang Investment Advisors (Tianxiang Investment Advisors as of March 31, 2024, Galaxy Securities as of April 5, 2024).
In addition, the 7-day holding period of Penghua CSI Interbank Certificate of Deposit AAA Index is also remarkable in terms of the number of holders and profit creation. According to the statistics of the fund's regular report, as of the end of 2023, the latest number of holders of the fund will exceed 500,000, with an annual increase of more than 260,000, and from the perspective of profit, the profit in 2022 and 2023 will be 218 million and 234 million yuan respectively, demonstrating the more outstanding earning ability.
Escorted by a professional investment and research team
It is understood that Penghua Fixed Income's bond index fund is mainly responsible for the cash investment department, and has set up a fixed income instrumental product investment research team to escort its products: first, team leader Ye Chaoming and deputy general manager/fund manager Zhang Jialei have more than 10 years of investment experience, experienced 3 or 4 complete economic cycles, and have the experience and ability to deal with different market environments; Thirdly, Penghua Cash Investment Department has rich experience in the management of all fixed income products, and can provide efficient and scientific asset allocation suggestions according to market conditions.
At present, Penghua's fixed income instrumental product investment research team has developed five categories: interest rate bond index fund, interest rate bond theme fund, credit bond index fund, certificate of deposit index fund and bond ETF, and manages 8 fixed income instrument products, which can more flexibly and fully meet the diversified needs of different investors.
Taking Penghua CSI 5-year local government bond ETF and Penghua CSI 0-4 year local government bond ETF as examples, they have attracted the attention of many institutional investors with their advantages of low credit risk, exchangeable pledge and stable historical performance.
From the perspective of past performance, the net value growth rate of Penghua CSI 5-year local government bond ETF in the past three years and since its inception has been 12.74% and 19.18% respectively, and the net value growth rate since the full natural year of 2021-2023 is 4.91%, 2.96% and 3.92% respectively, and the average value of similar products is 4.56%, 3.00% and 3.62% respectively. The net value growth rate of Penghua CSI 0-4 Year Local Government Bond ETF in the past three years and since its inception has been 9.75% and 11.33% respectively, and the net value growth rate since 2021-2023 is 3.44%, 2.55% and 3.09% respectively (source: fund regular report, as of 2024.3.31).
For example, Penghua CSI 5-year local government bond ETF is the first 5-year local government bond ETF in the whole market and the first local bond ETF product of the Shenzhen Stock Exchange, which is positioned as a swing allocation tool, tracking the CSI 5-year local government bond index, and has won the "2019 ETF Product Innovation Award"; Penghua CSI 0-4 Year Local Government Bond ETF is the only 0-4 year local bond ETF in the whole market, positioned as a currency enhancement tool, tracking the CSI 0-4 Year Local Government Bond Index, and has won the "2020 Shenzhen Stock Exchange ETF Product Innovation Award". The 7-day holding period of Penghua CSI Interbank Certificate of Deposit AAA Index is one of the first six interbank certificate of deposit index funds established in the market. Looking forward to the future, Penghua's fixed income instrumental product investment and research team will focus on the needs of various investors, strive to do a good job in subdivision layout and management, and provide investors with better products.
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