Core Insights - The event titled "The Long-Term Viability of 'Fixed Income+' Strategies" was held in Shanghai, focusing on the positioning and future development paths of such products in a low-volatility environment [1] - The current low interest rate and market volatility have led to a "yield drought," prompting investors to seek better returns through 'Fixed Income+' strategies, which combine equity and debt [1][4] - The roundtable featured discussions on achieving better returns while maintaining strict drawdown controls, highlighting the importance of risk management in 'Fixed Income+' products [1][4] Group 1: Investment Strategies - Yujianfeng from Dongfanghong Asset Management employs a unified investment framework that includes a target volatility model and a maximum drawdown control model to manage risk and enhance returns [7][8] - The strategy involves selecting benchmark indices for both stocks and bonds, with a focus on maintaining a low drawdown target of 2%-4% for open-end products [8][10] - Guo Liyan from Huazheng Fund emphasizes the importance of buying quality assets at good prices and dynamically adjusting market risk factors based on market conditions [9][10] Group 2: Risk Management - Yujianfeng argues that the term 'Fixed Income+' should not separate fixed income from equities, as both asset classes can exhibit low correlation, allowing for better risk-adjusted returns [12][13] - Guo Liyan highlights the need for disciplined position sizing and a robust risk management mechanism to prevent 'Fixed Income+' products from turning into 'Fixed Income-' [14][15] - Both managers stress the importance of controlling concentration risk and ensuring that the portfolio is well-diversified to mitigate potential market shocks [10][15] Group 3: Market Outlook - Yujianfeng predicts that the long-term trend of declining interest rates will continue, making it challenging to achieve traditional returns from bonds alone [24][25] - Guo Liyan identifies new economic sectors, such as AI and advanced manufacturing, as key areas for investment, anticipating a shift in market dynamics as these sectors gain prominence [26][27] - The managers agree that while short-term market conditions may present challenges, the focus should remain on long-term structural opportunities within the evolving economic landscape [26][27]

Core Viewpoint - The article discusses the strategies and insights shared by industry experts on how to achieve better returns in a low-volatility environment through "fixed income plus" strategies, emphasizing risk management and disciplined investment approaches [1][2]. Group 1: Strict Control of Drawdown - Two main paths for strict drawdown control are identified: model-based constraints and refined security selection [4]. - The investment framework includes a unified approach across different product types, utilizing a target volatility model and a maximum drawdown control model to manage risk [5][6]. - For low-volatility products, a drawdown target of 2% is considered low, while a range of 2%-4% is aimed for open-end products [6][7]. Group 2: Avoiding "Fixed Income Minus" Risks - The article emphasizes the importance of maintaining a clear risk-return profile to prevent "fixed income minus" scenarios, especially during market upswings [10][11]. - A disciplined position design is crucial, with a focus on maintaining a maximum stock allocation of 12% and the possibility of reducing stock positions to zero when valuations are too high [13][14]. - Daily liquidity and risk management mechanisms are highlighted, including strict evaluation of risk-reward ratios for individual securities [14]. Group 3: Methodological Origins - The investment framework is rooted in asset pricing theory, focusing on managing volatility and diversifying risk rather than relying solely on macro timing [15][16]. - A three-layer system for portfolio construction is proposed, which includes style structure, industry allocation, and individual security selection [18][19][20]. Group 4: Future Outlook in a Low-Interest Rate Environment - The article notes that as interest rates decline, the investment logic for "fixed income plus" products must evolve, with a potential long-term return of 2%-2.5% expected from bonds [23][24]. - The shift towards equity over bonds is suggested as a strategy to achieve higher returns in a low-yield environment, with a focus on sectors like technology and cyclical finance [25][26]. - The importance of balanced allocation and diversification is emphasized, particularly in the context of emerging industries such as AI and robotics [27].