Group 1 - The A-share market has shown significant characteristics of multiple driving forces, with sectors like computing power, innovative pharmaceuticals, and cyclical industries alternating in performance, contributing to overall market growth [1] - The macroeconomic environment is experiencing unprecedented structural shocks, leading to a complex market landscape where investors must balance certainty and risk [1][2] - The launch of the Huaxia 6-Month Holding Period Bond Fund (Class A: 024296 / Class C: 024297) on August 4 provides investors with a new asset allocation option that aims for both stability and potential returns [1][2] Group 2 - Central banks globally are adopting accommodative monetary policies due to inflation and economic growth pressures, while China's 10-year government bond yield has decreased to 1.68% as of July 21, 2025, highlighting the appeal of the bond market as a safe haven [2] - The A-share market continues to exhibit structural trends amid index fluctuations, with increased market risk appetite driven by profit-making effects, although the rapid rotation of hot topics complicates equity investment [2] - The secondary bond fund category, represented by "fixed income +” funds, is gaining traction as it combines stable income with equity market exposure, allowing investors to balance risk and returns [2][3] Group 3 - The secondary bond fund invests at least 80% of its assets in the bond market for stable coupon income while using up to 20% in the stock market to capture growth opportunities, demonstrating a "steady progress" strategy [3] - Over the past five years, the annualized return of the mixed bond secondary fund index was 3.3%, significantly outperforming major indices like the CSI 300 and CSI 500, which had returns of -0.14% and 0.99%, respectively [3] - The maximum drawdown for the secondary bond fund was -6.93%, much lower than the drawdowns of the CSI 300 and CSI 500, showcasing its resilience in various market conditions [3] Group 4 - The fund has a six-month holding period designed to minimize short-term volatility interference and encourage long-term investment, allowing for flexible exits without redemption fees after the holding period [4] - This structure helps fund managers estimate redemption pressure effectively, reducing the impact of cash assets on overall returns and enabling stable execution of investment strategies [4] Group 5 - The proposed fund manager, Wu Fan, has eight years of experience in securities and over two years in public fund management, focusing on top-down asset allocation and macro strategy research [5] - The fund's investment strategy emphasizes balanced diversification in fixed income and active timing in equity investments, aiming to manage drawdowns while seeking returns [5] - Huaxia Fund, one of the earliest public fund managers in China, has developed a robust bond research system and is committed to delivering returns through its credit research team [6]

Core Viewpoint - The growth of the "Fixed Income+" product category has been significant, with a total scale increase of over 250 billion in the first half of the year, indicating a shift towards more diversified investment strategies in a low-interest-rate environment [2][3]. Group 1: Market Trends - The "Fixed Income+" category has evolved through different phases, moving from a simple stock-bond mix to a more complex, multi-strategy approach to meet investor demands for flexibility and diverse asset allocation [3]. - The current market environment, characterized by low interest rates, has led to a consensus that "Fixed Income+" products can balance risk and return effectively [3]. Group 2: Fund Manager Insights - Fund manager Wu Fan emphasizes a top-down investment framework, focusing on market timing while also considering individual securities, and avoids high-valuation assets [7][9]. - Wu Fan's investment philosophy includes a strong macroeconomic perspective, which is crucial for understanding the bond market's dynamics and making informed investment decisions [9][10]. Group 3: Investment Strategy - The strategy involves dynamic asset allocation based on market conditions, with a focus on maintaining a balance between equity and fixed income to control volatility and drawdown [10][11]. - The approach to managing "Fixed Income+" products includes a dual-manager system, where one manager focuses on equity and the other on pure bonds, ensuring a unified return and risk assessment [11][12]. Group 4: Performance Metrics - The performance of the "Fixed Income+" products has been strong, with specific funds achieving a maximum drawdown of less than 1% while yielding a return of 6.34% [26]. - The success in performance is attributed to both equity and bond segments contributing to overall returns, with strategic timing and allocation playing a critical role [26][27]. Group 5: Future Outlook - The market is currently in a phase of stabilization, with macroeconomic fundamentals showing signs of improvement, although a strong recovery is yet to be confirmed [29][30]. - The focus on dividend-paying assets is expected to grow, particularly in a low-interest-rate environment, with specific sectors like consumer goods and financials being highlighted for potential investment [31].