Core Viewpoint - The current market environment, characterized by declining interest rates, should theoretically favor the development of mixed bond funds, yet recent announcements from two fund companies indicate significant challenges in both new issuance and existing fund performance [2][4]. New Issuance Delay and Existing Fund Liquidation - On November 4, 2025, Shenwan Hongyuan Fund announced an extension of the subscription period for its Shenwan Hongyuan Ningtong six-month holding period mixed fund, while Zhongjia Fund proposed to hold a meeting to discuss the termination of the Zhongjia Youyi one-year holding period mixed fund contract [2][4]. - The Shenwan Hongyuan Ningtong fund, managed by a fund manager with over eight years of experience, failed to complete its fundraising as planned after nearly three weeks, leading to an extension of the subscription deadline from November 7 to November 21, 2025 [4]. - The Zhongjia Youyi fund, which had a peak size of over 500 million yuan, saw its assets shrink to 17 million yuan, a nearly 90% decline, triggering termination clauses due to its status as a "mini fund" [5]. Underlying Challenges - Mixed bond funds are currently facing three core challenges, including underperformance relative to pure equity funds during bull markets and inability to retain risk-averse investors during market volatility [7][8]. - The Zhongjia Youyi fund's cumulative return of 7.73% and annualized return of 1.96% placed it in the middle tier among 978 similar products, indicating a lack of compelling performance to attract or retain investors [7]. - The strategy of mixed bond funds requires a high level of skill from fund managers, as they must balance fixed income and equity investments effectively to avoid underperformance [8][9]. Future Outlook - Despite the challenges, mixed bond funds remain a valuable asset allocation tool, with the key to overcoming current difficulties lying in enhancing fund management capabilities [11]. - The Zhongjia Youyi fund's management has indicated a focus on three main areas for the fixed income portion: potential resumption of government bond trading, the impact of new public fund sales regulations, and inflation expectations in the fourth quarter [11]. - The fund's strategy for the equity portion anticipates a resilient market with structural growth opportunities, particularly in the technology sector, reflecting an effort to improve overall returns [11].

Core Insights - The current market environment, characterized by declining interest rates, theoretically favors the development of hybrid bond funds, which are seen as a stable investment option for investors seeking steady returns [1][2] - However, recent announcements from two fund companies indicate significant challenges for this sector, with one fund extending its fundraising period and another proposing to terminate its contract due to poor performance [1][3] Fundraising and Survival Challenges - The Shenyuan Lingxin Ningtong six-month holding period hybrid fund has extended its fundraising deadline from November 7, 2025, to November 21, 2025, after failing to meet its fundraising target within the initial period [2][3] - The Zhongjia Youyi one-year holding period hybrid fund is facing liquidation, with its assets shrinking from over 500 million yuan to just 17 million yuan, a nearly 90% decline, triggering termination clauses [3][4] Underlying Issues - The hybrid bond fund sector is experiencing three core challenges, including underperformance compared to pure equity funds during bull markets and insufficient stability during market fluctuations [4][5] - The Zhongjia Youyi fund's performance has been mediocre, with a cumulative return of 7.73% and an annualized return of 1.96%, ranking it in the middle tier among similar products [5][6] Operational Difficulties - The complexity of managing hybrid bond funds requires fund managers to possess a comprehensive skill set, including macroeconomic judgment and the ability to navigate both bond and equity markets effectively [6][7] - The fund's strategy of maintaining a holding period to encourage long-term investment can backfire if performance does not meet investor expectations, leading to significant redemptions [6][7] Future Outlook - Despite the challenges, the strategic value of hybrid bond funds remains, with the key to overcoming difficulties lying in enhancing fund management capabilities [7][8] - Fund managers are expected to focus on key areas such as central bank operations, regulatory changes, and inflation expectations to improve performance [7][8] - The market for hybrid bond funds is transitioning from a phase of conceptual growth to one that demands rigorous asset allocation skills and precise investment strategies [8]