GF Fund Zhu Kun: Provide one-stop financial solutions

□ reporter Wan Yu

With the steady development of China's economy, the wealth of residents has been rapidly accumulated, and their financial needs have a broader connotation. How to rationally allocate financial assets such as stocks and bonds to achieve long-term steady appreciation of residents' wealth is an important topic of concern to the fund industry. Zhu Kun, fund manager of the asset allocation department of GF Fund, introduced that the asset allocation team of GF Fund is committed to providing customers with one-stop financial solutions, based on in-depth research on asset attributes, formulating a framework for selecting underlying assets; based on risk-based asset allocation and portfolio management methods, reasonable allocation of selected stock assets, bond assets, fund strategies, etc., in order to achieve the purpose of optimizing returns.

Achieve long-term steady growth of wealth

Under the background of the new asset management regulations, traditional bank wealth management products with capital protection and income protection have gradually withdrawn from the market. However, residents are also reluctant to allocate a large proportion of stock assets, citing the volatility of stocks. Therefore, they want to look for stable yield products with low volatility as an alternative to financial management. GF Fund conducted research and analysis on customers in retail channels and found that residents achieve steady wealth appreciation through financial products, and its core demands are reflected in three aspects: long-term appreciation, steady appreciation, and multi-frequency.

Zhu Kun said that as an asset management company, in order to provide a solution that can meet the long-term appreciation of residents' wealth, it is necessary to meet the needs of customers for long-term appreciation, steady appreciation and multi-frequency investment. From the design of the program, the following three points must be achieved: first, the main source of income of the program should be long-term, in line with the logic of economic development of high-quality assets, in order to meet the core needs of long-term investment; secondly, the program should consider both the income and the risk, from the construction of the portfolio, risk management and drawdown should run through the whole process to meet the investor's preference for steady appreciation; third, for customers with multi-frequency investment, the design of the program should be convenient for customers to make regular and multiple investments. For this type of customer, Sharp is better than the high product, the customer's comfort is better, no longer have to choose the time of each investment.

Combined with the financial needs of customers, public funds have launched hybrid funds with the goal of stable returns in recent years, for example, GF Value Returns managed by Zhu Kun has diversified the allocation of stocks, bonds, money market tools and other multi-class assets, and realized returns on the basis of controlling drawdowns. Its positioning is low volatility, low drawdown, the pursuit of absolute returns, in line with the low-risk financial needs of bank wealth management customers.

Build multi-dimensional solutions

Zhu Kun introduced that looking at overseas developed markets, the United States has been implementing hybrid products with different risk levels and special goals since the 1980s. This type of fund allocates a mixture of assets to various financial assets such as stocks and bonds, and the risk characteristics are between equity funds and bond funds, which is suitable for investors who hold different assets to diversify risks and obtain different market returns.

GF Fund has set up an asset allocation team since 2015 to focus on the research and development of wealth solutions for domestic residents. In order to be able to design and operate long-term and stable resident wealth solutions, the company has built a multi-dimensional asset allocation solution system to systematically solve long-term, stable and multi-frequency investment needs.

Specifically, the multi-dimensional system consists of four major parts. The first part is the asset analysis system, which analyzes the source of the long-term return on the asset and the pattern of fundamental and market impact on the asset. The second part is the underlying asset selection system, which systematically selects individual bonds and individual stocks or funds to enhance the source of income. The third part is the asset allocation methodology, which fully considers the impact of risk on the portfolio, and carries out risk management through scientific asset allocation methods to improve the Sharp ratio of the portfolio. The fourth part is the portfolio management system, which manages the entire investment process of the portfolio in a process-oriented manner and reduces the error of management.

At present, GF Fund has created a multi-asset solution product line suitable for different risk-tolerant groups, including products with three risk levels of low risk, medium risk and high risk, as well as products with special targets (such as target date funds). Among them, low-risk products are suitable for customers who pursue asset preservation and have higher requirements for risk drawdown, such as GF value return in the first half of the year to achieve a return of 2.70%, the maximum drawdown of -0.83%, sharp ratio annualized 2.32; medium risk products are suitable for customers who pursue asset appreciation and balance risk, such as GF Theme leading the first half of the year return of 25.87%, the maximum drawdown of -3.42%; high-risk products are suitable for customers who pursue long-term higher asset returns, such as GF Pension 2050, GF New Power.