Bank of China pure bonds help the "steady" upgrade of wealth management

In recent years, market volatility has increased, and fixed income products have become increasingly popular among investors due to their low volatility. According to Wind data, a total of 120 new funds (different shares are combined) were established in April this year, with 141.089 billion shares issued, of which 23 medium and long-term pure bond funds were issued, with a total of 52.416 billion shares, accounting for nearly 40%. (Data source: Wind, data statistics range: 2024.04.01-2024.04.30)

In this context, as a pure bond fund, BOC Pure Bond has won the trust of many investors with its outstanding performance.

It is understood that through the active management of various types of bonds, BOC Pure Bond pursues the long-term steady appreciation of fund assets. From the perspective of investment scope, the fund invests in bond assets at least 80% of the fund's assets, and does not directly purchase 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. In terms of investment strategy, the fund adopts a combination of top-down and bottom-up approaches to achieve the best ratio of risk and return under the premise of strict risk control.

Judging from historical data, the performance of BOC pure bonds has shown long-term resilience. According to the first quarter report of 2024, as of March 31, 2024, the total return of BOC Pure Bond A since its inception in December 2012 was 63.50%, the performance benchmark for the same period was 14.38%, and the excess return was 49.12%, showing relatively excellent performance; Judging from the performance of the past year, the yield of Bank of China Pure Bond A in the past year is 6.21%, ranking in the top 3% (17/785) in the same category. (Source of Fund Performance: Periodic Report of the Fund; The same category refers to Galaxy Fund Classified Bond Fund - Pure Bond Fund - Long-term Pure Bond Bond Fund (Class A), data source: Galaxy Securities, as of 2024.03.31)

The fund is helmed by fund manager Lin Yanbin. Lin Yanbin has 13 years of experience in the securities industry and nearly 3 years of experience in fund management, he has long focused on credit research, focusing on credit bond industry selection and bond mining, and is good at the comprehensive evaluation and investment of bond issuers and bonds. Based on the judgment that the bond market may be volatile in the future, he believes that the coupon strategy of medium-to-high-grade and medium-duration credit bonds may be relatively superior, and at the same time, swing trading operations in a volatile market may help to thicken the portfolio income.

Behind the excellent performance is a strong team support. As a well-established bank-based public fund, Bank of China Fund Management has been deeply engaged in the field of fixed income business for many years. According to Haitong Securities, as of the end of March 2024, the excess return of fixed income products of Bank of China Fund ranked among the top, ranking third among 16 large fixed-income fund companies in the past one, two and three years. (Source: Haitong Securities, "Excess Return Ranking of Equity and Fixed Income Assets of Fund Companies", as of March 29, 2024)

With the promulgation of the new "National Nine Measures", asset management institutions are faced with higher requirements for investment and research capabilities and product innovation services. In the future, BOC Asset Management will continue to enhance its own strength, adhere to the priority of investors' interests, focus on investors' long-term returns, and meet the diversified needs of investors through a rich product line.

Performance Review:

BOC Pure Bond A was established on 12 December 2012 and Lin Yanbin managed the fund on 24 August 2021. The fund's return in the past five years/performance benchmark returns are 4.12%/1.31% in 2019, 3.25%/-0.06% in 2020, 4.14%/2.10% in 2021, 0.72%/0.51% in 2022, 5.99%/2.06% in 2023, and 1.95%/1.35% in the first quarter of 2024.

BOC Pure Bond C was established on December 12, 2012, and Lin Yanbin managed the fund on August 24, 2021, and the fund's return in the past five years/performance benchmark returns in the past five years were: 3.93%/1.31% in 2019, 2.97%/-0.06% in 2020, 3.85%/2.10% in 2021, 0.34%/0.51% in 2022, 5.75%/2.06% in 2023, and 1.89% in the first quarter of 2024/ 1.35%。

BOC Pure Bond D was established on 25 May 2023 and Lin Yanbin has managed the fund since its inception. Fund Returns/Performance Benchmark Returns: 2.95%/1.02% from inception to 31 December 2023, 1.94%/1.35% in Q1 2024.

Lin Yanbin is managing similar products: Bank of China Yueyuexin 30-day rolling holding A/C, established on April 16, 2024. Lin Yanbin has managed the fund since its inception. The same kind refers to "bond fund - pure bond bond fund - long-term pure bond bond fund", Galaxy Securities.

Data Description:

1. Haitong Securities: Ranking of Excess Return of Equity and Fixed Income Assets of Fund Companies, the excess return of fund management companies refers to the average excess return of active funds managed by fund companies (the return after the growth rate of the net value of the fund minus the performance comparison standard) calculated according to the weighted calculation of 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.

2. Classification of large, medium and small companies: according to the average size of active equity (active fixed income) in the past year of Haitong Securities' scale ranking, 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, between 50% and 70% are divided into medium-sized companies, and the rest are small companies. Smaller companies also include companies with their longest-standing products that are less than 1 year old.

3. Data source: Wind, Haitong Securities Research Institute.

Risk Warning (Swipe up and down to view all) Funds are risky, and investment needs to be cautious. The fund manager manages and uses the fund assets in accordance with the principles of due diligence, good faith, prudence and diligence, but does not guarantee that the fund will be profitable, nor does it guarantee the minimum return, and in a few extreme market conditions, there is a risk of losing all the principal of the fund investment. Past performance of a 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 making investment decisions, investors are requested to carefully read the fund contract, prospectus, product key facts statement and other documents to understand the specific situation of the fund, judge whether the fund matches the investor's risk tolerance according to their own investment objectives, investment period, investment experience, asset status, etc., and complete the matching test between risk tolerance and product risk in accordance with the requirements of the sales agency. 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.