Core Insights - Bond funds have shown increasing average returns over the past 3, 5, and 7 years, with a widening gap between the best and worst performers [2][4][5] - The recent recovery in the A-share market has heightened investor interest in equity investments, but bond funds remain essential for stabilizing asset allocation [2][4] - The report titled "China Fund Industry Marathon Master Gathering 2025" analyzes extensive data to assess the long-term performance of bond funds [2] Performance Analysis - The average returns for the entire bond fund market over the past 3, 5, and 7 years are 8.37%, 17.32%, and 32.36% respectively, with a notable increase in the proportion of funds yielding positive returns [4][5] - Specific categories of bond funds, such as pure bond funds and mixed bond funds, have also demonstrated improved performance over time, with average returns of 9.49%, 17.64%, and 28.12% for pure bond funds over the past 3, 5, and 7 years [5][6] - The number of bond funds with positive returns has increased significantly, with 99.42% of funds achieving positive returns over the past 7 years [4] Risk and Performance Discrepancies - "Rights-containing" bond funds have shown mixed results, with some experiencing significant declines during market adjustments [6][7] - A total of 203 bond funds reported negative returns over the past 3 years, with a concentration in "rights-containing" funds [6][7] - Notably, some "rights-containing" funds have also achieved outstanding performance, with several funds exceeding 30% returns over the past 7 years [8][9] Top Performing Funds - The top-performing bond funds over the past 3 years include 富国久利稳健配置 A (41.20%), 华夏大中华信用精选 A 人民币 (34.97%), and 华商恒益稳健 (32.51%) [10] - Over the past 5 years, 华商丰利增强定开 A (131.24%) and 华商恒益稳健 (95.43%) lead the performance rankings [10] - For the past 7 years, 华商丰利增强定开 A (170.07%) and 汇丰晋信 2026 (127.30%) are among the top performers [10]

Group 1 - The overall performance of A-shares has been lackluster this year, with major indices such as the Shanghai Composite Index and Shenzhen Component Index declining, while the convertible bond market has shown strong performance, with the China Convertible Bond Index rising over 3% year-to-date, significantly outperforming A-share indices [1] - As of May 25, 2023, 10 bond funds (Class A shares) have seen net values increase by over 7% this year, with notable funds including Bosera Convertible Bond Enhanced A, China Europe Convertible Bond A, and Huabao Convertible Bond A [1] - Some non-convertible bond funds also heavily invest in convertible bonds, such as Huashang Fengli Enhanced Open A, which has seen a net value increase of 11.45% this year, ranking first among bond funds [1] Group 2 - Private equity firms are also heavily invested in convertible bonds, with data showing that by the end of last year, nine hundred billion private equity firms collectively held 49 convertible bonds among the top ten holders, with a total market value of approximately 3.181 billion yuan [2] - Specific private equity firms like Ruijun Asset and He Sheng Asset hold more than five convertible bonds each, with significant market values, including Ruijun Asset holding 19 convertible bonds with a total market value of about 2.545 billion yuan [2] - Despite the overall strength of the convertible bond market, some bonds have been downgraded due to deteriorating fundamentals, with several bonds being placed on watch lists this year due to issues such as performance losses and increased debt pressure [2] Group 3 - Convertible bonds have been recognized as an important investment category for "fixed income plus" funds this year, benefiting from an optimized supply-demand structure, with a focus on low price and low valuation strategies [3] - Current market analysis indicates that the prices of balanced and debt-oriented convertible bonds are at neutral points from a long-term perspective, while equity-oriented convertible bonds still have room for price increases [3] - The overall supply of convertible bonds has weakened in recent years, and in a low-interest-rate environment, the motivation for companies to finance through convertible bonds may decrease, potentially impacting future valuations [3]

Core Insights - The report analyzes the investment value of fixed income funds managed by Huashang Fund's manager Li Qian, focusing on market environment, manager capabilities, and product characteristics [1][2]. Market Analysis - The equity market has shown a volatile upward trend over the past year, characterized by "strong expectations, weak realities," with a significant rebound since September 24, 2024, following unexpected policy shifts. However, recent tariff policies have led to stagnation [12][19]. - The bond market's safe-haven rally driven by tariff impacts may be temporarily concluding, with the 10-year government bond yield expected to fluctuate between 1.65% and 1.75% [19][24]. - The convertible bond market has experienced a "V"-shaped recovery, with a positive outlook for price recovery, particularly in technology growth sectors [1][19]. Fund Manager Introduction - Li Qian, an economics PhD with 5.3 years of securities investment experience, has managed over 6.6 billion yuan in public funds, achieving a return of 119.63% for the Huashang Fengli Enhanced A fund during his tenure, ranking first among peers [2][41]. Product Characteristics Huashang Fengli Enhanced A - This fund exhibits characteristics of a convertible bond fund, achieving significant excess returns during the bull market from 2020 to 2021. Over the past five years, it has delivered a return of 119.63%, significantly surpassing its performance benchmark [3][43]. - The fund's asset allocation strategy has focused on convertible bonds and interest rate bonds, maintaining a maximum drawdown of no more than 3% while achieving high returns [3][43]. - In 2024, the fund's annualized return exceeded 10%, driven by active industry rotation and optimized leverage and duration management [3][44]. Huashang Credit Enhanced A - This fund also demonstrates strong characteristics of a convertible bond fund, achieving a balance between returns and risks across different market cycles. It recorded annualized returns of 20.53% and 33.49% in 2020 and 2021, respectively, significantly outperforming peers [4][5]. - The fund's performance turned negative in 2022-2023 due to macroeconomic downturns and rising interest rates, but it rebounded to an annualized return of 9.27% in 2024 [4][5]. Huashang Lixin Return A - This fund has shown aggressive characteristics through high leverage and industry rotation strategies, demonstrating defensive attributes in a weak market environment in 2023. Its performance improved significantly in 2024, with continued recovery in 2025 [6][5]. Fund Performance Metrics - Huashang Fengli Enhanced A achieved an annualized return of 16.92% over five years, with a total return of 118.69%, significantly exceeding its benchmark [46][44]. - The fund's asset allocation has shifted towards convertible bonds, which now constitute 97.75% of its portfolio, reflecting a strategy focused on high-risk assets [49][50]. - The fund's leverage ratio is higher than the industry average, enhancing its return potential while increasing volatility [54].

Group 1 - The core viewpoint of the article highlights the strong performance of the Huashang Fengli Enhanced Open A fund, which has generated good returns for investors, with a year-to-date return of 9.09% as of April 25, 2025, ranking first among its peers [1][4] - The fund has an annualized return of 9.75% since its inception in September 2016, significantly outperforming its benchmark, the China Bond Index, by over 70 percentage points [2][4] - As of the end of Q1 2025, the fund's asset allocation consisted of 73.79% in fixed income investments, primarily in convertible bonds, and 16.62% in equity investments [6][7] Group 2 - The fund manager, Li Qian, has been managing the Huashang Fengli Enhanced Open A since December 2019 and focuses on actively managing the fund to achieve stable returns [5] - The fund's investment strategy emphasizes a mix of medium to short-duration bonds with a focus on AAA-rated credit to control credit risk while also participating in interest rate bonds and equity assets to enhance returns [8]