Core Viewpoint - The establishment of the mixed asset department at CICC Fund Management aims to create a differentiated and competitive "fixed income +" product matrix in a low interest rate environment, focusing on balancing risk and return for investors [1][2]. Group 1: Team Development and Strategy - The mixed asset department started with two members and has grown to four, managing nine products with an asset scale of approximately 3.8 billion yuan [1]. - The team has adopted a matrix development approach with different products targeting various goals and strategies, including secondary debt funds and flexible allocation products [2]. - The core value of mixed assets is to achieve a dynamic balance between diversified returns and controlled drawdowns, addressing the current market demand for stable yet higher returns [2]. Group 2: Investment Philosophy and Risk Management - The principle of "discipline over strategy, strategy over individual stocks" guides the investment approach, emphasizing strict risk budgeting and timely adjustments based on market conditions [3]. - A comprehensive research framework is established, integrating systematic thinking with an understanding of market cycles, competitive positioning, and pricing dynamics [4]. Group 3: Market Outlook and Future Opportunities - The outlook for the equity market in 2026 is optimistic, driven by ample liquidity, ongoing policy support, and recovering corporate earnings, which are expected to lead to a sustained upward trend [6]. - Specific investment opportunities for 2026 include undervalued high-dividend sectors, technology growth areas like AI and semiconductors, and the pharmaceutical sector, which is anticipated to stabilize and recover in valuation [6]. - For "fixed income +" products, equity assets will continue to be a significant source of enhanced returns, with bonds providing a safety net and equities offering flexibility [6].

Core Viewpoint - The article discusses the emergence of multi-asset investment products driven by macroeconomic changes, highlighting the need for higher yield products in a low-interest-rate environment and the evolution of fund management practices to meet investor demands for absolute returns [1][2]. Group 1: Macro Environment and Trends - Three long-term forces are driving the development of multi-asset investments: the need for higher yield products due to low interest rates, the shift towards high-quality public fund development, and the establishment of competitive advantages by fund companies through team specialization and product design [2]. - The past decade has seen significant growth in various fund types, such as money market funds and actively managed equity funds, driven by changing macroeconomic conditions [1]. Group 2: Addressing Absolute Return Needs - The investment goal of the multi-asset management team at the company is to achieve absolute returns for investors, addressing behavioral biases caused by high volatility in fund products [6][7]. - The team has identified two main factors affecting absolute returns: investor behavior influenced by product volatility and the limitations of single-asset investment strategies across economic cycles [6]. Group 3: Product Design and Risk Management - A strict risk budget mechanism is implemented in product design, with maximum drawdown targets set at 2%, 3%, or 5% to define product characteristics clearly [7]. - The team employs strategic and tactical asset allocation across stocks, bonds, and convertible bonds to adapt to different macro environments, enhancing the confidence in achieving absolute returns [7]. - The risk management approach emphasizes proactive measures to avoid passive losses, with a focus on maintaining risk budgets and ensuring that fund managers are aware of their risk exposure [13][14]. Group 4: Enhancing Product and User Fit - The company recognizes the need for diverse product offerings to match varying investor risk preferences and investment horizons, moving away from a one-size-fits-all approach [9][25]. - A standardized product framework is established to ensure that product characteristics take precedence over individual fund manager styles, allowing for consistent risk management [9][10]. Group 5: Effective Team Assessment - The assessment of fund managers incorporates both return and volatility metrics, ensuring that managers are incentivized to maintain a balance between risk and return [16][18]. - A unified risk accountability system is in place, where both equity and bond fund managers share responsibility for risk, promoting collaboration and reducing the tendency to take excessive risks for short-term gains [16]. Group 6: Providing Rational Income Expectations - The multi-asset management team aims to provide stable risk-return profiles through systematic asset allocation, leveraging the long-term negative correlation between stocks and bonds [20][21]. - The team employs a modular strategy approach, diversifying investment strategies across various asset classes to enhance the sources of excess returns [21][22]. Group 7: Meeting User Needs with Multi-Asset Products - The company has developed a differentiated product line based on maximum drawdown, investment style, and distribution channels to better align with user needs [25][26]. - By understanding the distinct preferences of different investor segments, the company aims to create a sustainable product line focused on absolute return objectives [26].

Core Viewpoint - 2025 is expected to be a significant year for "Fixed Income +" with continuous growth in performance and scale, providing tangible benefits to holders through limited product drawdowns and achieving absolute returns, with net values reaching new highs despite market volatility [1]. Group 1: Performance and Product Development - As a leading manager in the "Fixed Income +" sector, China Merchants Fund has seen multiple products reach new highs over the past year, with specific products like China Merchants Anben Zengli Bond A yielding 17.27% and China Merchants Min'an Zengyi Bond A yielding 13.45% [2]. - The "Fixed Income +" product line has evolved from a simple "bond + stock" model to a diversified risk spectrum, with various products tailored to different risk appetites, including high, medium, and low volatility options [3][4]. Group 2: Risk Management and Investment Strategy - The company has pioneered a risk budget management model, focusing on controlling drawdowns and ensuring that products meet the return expectations of clients with varying risk preferences [5][6]. - The investment strategy has expanded to include a wide range of asset classes and strategies, such as quantitative enhancement, low-volatility dividends, and balanced allocations, allowing for a more tailored approach to different client needs [7][8]. Group 3: Research and Cultural Development - The evolution of "Fixed Income +" requires a comprehensive and refined approach to research, integrating macroeconomic analysis, industry research, and quantitative strategies, supported by a collaborative and open research culture [10][11]. - The open culture within the investment team fosters innovation and adaptability, enabling the company to continuously enhance its "Fixed Income +" offerings and meet the diverse needs of its client base [9][12].