Abstract: As the backbone of Fuerjia's "fixed income +" investment team, the "Yiyang Portfolio" composed of Senior Equity Fund Manager Yi Zhiquan and Credit Research Department General Manager Zhang Shiyang is no stranger to many investors. Recently, the two made a guest online live broadcast event, focusing on "how to choose a good fund in the shock city", and shared the market views and investment experience of "full of dry goods" for everyone
Before the National Day, A-shares exceeded the trillion turnover for 48 consecutive trading days, continuously refreshing the longest record in history. However, due to the acceleration of plate rotation this year, the market style interpretation tends to the extreme, and it is not easy for investment to obtain positive returns in the face of the daily volume of trading.
Data source: Wind, industry classification according to Shenwan first-level industry classification.
Wind data shows that as of mid-September this year, more than 30% of the partial stock hybrid funds still have negative returns during the year; it is valuable that nearly 95% of the annual returns of one type of fund are still positive in this year's volatile market environment.
Data source: Wind, statistical interval is January 1, 2021 - September 13, 2021;
This is only a market data analysis and does not represent a commitment or forecast for the overall return of the Fund or the future fund industry.
Partial debt hybrid funds usually in the contract will constrain the proportion of equity investment to be controlled below 40% or lower, and the fund manager can also make certain changes and adjustments within the contract constraint ratio, according to the situation of the equity market and the bond market: through a certain large class of asset allocation, strive to maintain a certain flexibility when the stock market has opportunities, and when there is a greater risk in the stock market, through the fixed income assets to stabilize the fluctuations and accumulate the basic income.
Therefore, when the market is turbulent, partial debt hybrid funds such as "fixed income +" are often more likely to be favored by investors.
As the backbone of Fuerjia's "fixed income +" investment team, the "Yiyang Portfolio" composed of Senior Equity Fund Manager Yi Zhiquan and Credit Research Department General Manager Zhang Shiyang is no stranger to many visiting officials: Interview "Yiyang Portfolio": The pursuit of absolute returns is the same destination.
Wells Fargo Fund
Yi Zhiquan Zhang Shiyang
Recently, the "Yi Yang Group" made a guest appearance on a live broadcast event, bringing everyone a market view of "full of dry goods", and Fu Er sorted out some wonderful speeches for the guest officials, sharing the investment experience of the two people
The plate rotation is accelerating, the style interpretation is more extreme, how to view this year's market environment?
Yi Zhiquan: This year's market volatility is indeed greater than before, but from my many years of experience, it is still logical, 2019, 2020 is a unilateral rise in the market, the increase is relatively large, after a period of rise, the market will often have a consolidation period, this year's market environment is relatively more in line with the long-term law of the stock market.
In such a differentiated context, how to invest is better?
Yi Zhiquan: Investors can ask themselves, what are their financial needs? How long do you plan to hold a fund? If the holding time is relatively short, you may not want to take too much risk; if the holding time is relatively long, you can withstand certain fluctuations to strive for higher returns. In such a market environment this year, the stock market volatility is larger, for individual investors, the better strategy is to do a large class of asset allocation: the allocation of a certain equity assets and a certain fixed income assets, so as to avoid some fluctuations in the stock market to some extent, to obtain fixed income assets relatively more stable income, which is also the original intention of designing "fixed income +" products. In a market environment with a certain degree of volatility, "fixed income +" should be suitable for most investors.
What does credit risk management mean for fixed income investments?
Zhang Shiyang: Bond funds have less volatility than equity funds, and at the same time have a relatively sustained coupon income, which can strive to bring more stable returns to investors in the long run. However, if the credit risk cannot be managed well, then the bond fund may also have a large drawdown, which will cause permanent losses, and only by controlling the credit risk can investors have a long-term smoother income experience.
How to choose the right "fixed income +" product for you?
Yi Zhiquan: Investors can first determine whether they need a "fixed income +" product according to their own risk-return preference, and then choose "fixed income +" from four dimensions:
1. The past performance of other "fixed income +" products managed by the fund manager can be used as a simple reference;
2. Observe the allocation of existing assets in the "fixed income +" product managed by the fund from the regular report of the fund, and whether its stock investment part has been at the upper limit, which can be considered whether the fund manager is doing asset allocation;
3, position concentration, as an active management of the "fixed income +" product, there should be a more moderate concentration of positions;
4. Pay attention to professional indicators such as sharp ratio, that is, the risk-adjusted return ratio.
Zhang Shiyang: In the past, investors always said that investors need to give a portrait of the fund manager, but now investors can also paint themselves a portrait, first understand their own risk appetite, so as to better arrange their positions. For equity funds, the ability to select stocks is perhaps the most important point; for bond funds, duration control and credit risk control capabilities may be the most important points. The investment strategy of high dividends for stock investment and high coupons for bond investment may not be suitable for most "fixed income +", because the flexibility of products such as "fixed income +" is mostly provided by stocks, so for bond fund managers, it is necessary to control credit risk at a low level in the long run.
Today, the new product "Fixed Income +" to be managed by the "Yiyang Portfolio": wells Fargo Credit Rewards 12-month holding period was officially issued in major banks, securities companies and tripartite channels such as China CITIC Bank, as another powerful combination of two fund managers, the proportion of equity investment in the product is less than or equal to 40% of the fund's assets, and at the same time, it is very concerned about the management of credit risk, relying on the strong investment research platform of Wells Fargo Fund, and is committed to creating a balanced experience for investors to stabilize fluctuations and thicken returns.