Core Insights - The public fund market in China has become active again, with the total scale of public funds exceeding 35 trillion yuan by July 2025, indicating a robust recovery compared to the previous year's market frenzy [2] - The current market rally shows a more stable and less volatile upward trend in A-shares and H-shares compared to the previous year [2] - There is a notable structural differentiation in the market, with high-growth sectors like technology and innovative pharmaceuticals performing well, while traditionally strong sectors like real estate and consumer goods are relatively weak [3] Company Strategy - China Europe Fund has introduced the "asset management industrialization" concept to fundamentally change the way funds are manufactured, aiming for clearer positioning and more stable styles in their products [4][5] - The fund's research and investment system upgrade focuses on three key aspects: specialization, industrialization, and digital intelligence, to enhance efficiency and decision-making [6][7] - The fund's approach includes a structured process involving design, production, assembly, and testing to ensure a comprehensive investment strategy that meets client needs [8][9] Performance Metrics - As of June 2025, the China Europe Convertible Bond A fund achieved a net value growth rate of 20.92%, outperforming its benchmark by 9.43 percentage points [7] - Other funds under China Europe Fund also showed strong performance, with the China Europe Digital Economy A fund growing by 93.07%, significantly exceeding its benchmark of 35.40% [12][13]

Performance Insights - In Q1 2025, convertible bond funds achieved a median return of 3.48%, outperforming pure bond funds which had a median return of -0.19%[1] - The first quarter saw significant growth in the scale of convertible bond funds, reaching 98.4 billion CNY, an increase of 3.6% from the previous quarter[2] - The excess return of convertible bond funds was highlighted, with a 25th percentile excess return of 1.72%[8] Fund Size and Positioning - The scale of first and second-tier bond funds increased by 331 billion CNY and 871 billion CNY, reaching 7686 billion CNY and 7692 billion CNY respectively in Q1 2025[2] - Convertible bond fund positions increased by 0.32 percentage points to 91.24%, marking a historical high[2] - Traditional bond funds saw a reduction in convertible bond positions, with first-tier bond funds decreasing by 0.04 percentage points to 8.65%[22] Market Trends and Strategies - Public funds focused on increasing positions in sectors like AI and photovoltaic components while reducing exposure to banks and brokerages[34] - The overall market environment in April 2025 is characterized by uncertainties, prompting a cautious approach among fund managers[3] - The preference for lower-risk bond funds is driven by banks' risk appetite and capital usage considerations[23] Risk Factors - Potential risks include accelerated style rotation in equity markets and unexpected adjustments in convertible bond market rules[4]

Core Viewpoint - The bond market has experienced significant adjustments this year, while the stock market has seen an increase led by technology stocks, followed by fluctuations due to "reciprocal tariffs" [1] Group 1: Performance of "Fixed Income +" Products - Over 60% of "Fixed Income +" funds have shown positive year-to-date net asset value growth as of April 18 [2][4] - Nearly 200 funds reached new highs in net asset value in April, indicating strong performance in a volatile market [4] Group 2: Future Outlook for "Fixed Income +" Strategies - Fund managers believe that "Fixed Income +" strategies are likely to continue generating returns, with expectations for further product expansion [3][5] - The current capital market activity is driven by various factors, including economic stabilization, technological innovation, and geopolitical resilience, which support the value discovery of domestic assets [5] Group 3: Asset Allocation Insights - The allocation to equity and convertible bond assets has yielded good returns for funds, with some funds reporting over 6% net asset value growth in the first quarter [8] - Convertible bonds are seen as having strong configuration value due to their performance in the current interest rate environment [8][9] Group 4: Management Strategies for "Fixed Income +" Funds - There is a trend of incorporating active equity fund managers into the management of "Fixed Income +" products to leverage their stock-picking abilities [10][11] - The ability to manage across multiple asset classes and maintain a balance between equity and fixed income stability is crucial for success in this space [11] Group 5: Market Conditions and Sector Focus - The A-share market is expected to focus on domestic factors, with a gradual stabilization and subsequent rise anticipated [12] - In terms of sector allocation, there is an emphasis on consumer services and industrial sectors, while maintaining a focus on credit quality and yield in fixed income investments [12]