Core Viewpoint - The fixed income investment landscape has shifted from "extensive growth" to a "meticulous" era, where every basis point of return requires careful consideration, emphasizing the importance of teamwork and systematic support in fixed income fund management [1] Group 1: Performance and Rankings - Changcheng Fund's fixed income products have consistently delivered stable medium to long-term performance in a complex market environment, ranking in the top 20% across various time frames according to Guotai Junan Securities' absolute return classification rankings as of June 30, 2025 [1] - Specifically, the rankings are 31 out of 170 for the past year, 22 out of 163 for the past two years, and 24 out of 151 for the past three years [1] Group 2: Team Structure and Research Capabilities - The fixed income team at Changcheng Fund has established a matrix-style research structure, dividing into specialized departments such as fixed income research, bond investment, and cash management, while fostering an integrated platform for efficient collaboration [2] - The team has expanded its research areas to include overseas markets and peer product studies, enhancing the strategic and practical nature of their research support [2] - Research outputs are expected to translate into actionable strategies, with the convertible bond team employing various strategies based on high YTM, low volatility, and machine learning [2] Group 3: Product Strategy and Management - Changcheng Fund maintains a clear positioning and defined styles for each product, ensuring strict framework constraints on volatility, maximum drawdown, and asset allocation, while allowing fund managers sufficient investment freedom within these frameworks [3] - The fixed income team operates as a cohesive unit rather than isolated fund managers, focusing on product management and investor needs to balance risk and opportunity in both equity and debt markets [3]

Core Viewpoint - The domestic stock and bond markets are exhibiting complex yet resilient trends, with diverse investment opportunities available in both asset classes. A diversified asset allocation strategy is suggested as a favorable approach in the current environment [1][2]. Group 1: Market Overview - Both stock and bond markets present good investment opportunities, and a multi-asset layout can enhance risk resistance [2]. - The domestic macroeconomic environment shows signs of weak recovery, with industrial output and manufacturing investment declining, and the manufacturing PMI at 49.5%, indicating a contraction [2]. - Market interest rates may continue to decline, suggesting a favorable bond market outlook [2]. Group 2: Stock Market Insights - Short-term fluctuations are expected in the A-share market, but long-term policies are aimed at stabilizing confidence and expectations, supporting a steady market [3]. - The Central Huijin Company is expected to play a stabilizing role, promoting long-term capital inflow into the A-share market [3]. - Multi-asset strategies are likely to provide better returns across market cycles, with a focus on fixed income-enhanced products [3]. Group 3: Fund Performance - The secondary bond fund index has achieved a cumulative increase of 394.08% and an annualized return of 7.98% since 2004, outperforming both stock and bond indices [3]. - The Longcheng Stable Income Fund, which focuses on a mix of pure bonds, convertible bonds, and stocks, aims to enhance returns while managing risks [4][5]. - The fund manager emphasizes a detailed management approach, focusing on short-duration bonds and high-grade commercial financial bonds for stable income [5]. Group 4: Fund Strategy - The Longcheng Stable Income Fund employs a "pure bond + convertible bond + stock" strategy to enhance returns [4]. - The fund manager dynamically adjusts the asset allocation based on market conditions, comparing stock dividend yields with bond yields to optimize investment [5]. - The fund's one-year return reached 6.77%, surpassing its benchmark and ranking in the top 20% among similar funds [5].

Group 1: Macro Environment and Market Impact - The current macroeconomic uncertainty is expected to negatively impact global demand due to trade wars and tariffs, leading to a supportive environment for the bond market [2][3] - The bond market is anticipated to maintain a favorable structure with potential structural opportunities despite short-term volatility [2][3] - The equity market is experiencing significant short-term fluctuations due to tariff impacts, but long-term opportunities are expected as macroeconomic recovery continues [4][5] Group 2: Investment Strategies and Opportunities - The focus on multi-asset investment strategies is emphasized, with a need for flexibility in asset allocation to manage risks and enhance returns in a low-interest-rate environment [12][14] - There is a growing interest in sectors such as cyclical, consumer, and technology, with specific attention to companies with strong cash flows and competitive advantages [9][10] - Convertible bonds are highlighted as having investment value, particularly in a low-risk environment where their dual nature can be leveraged for enhanced returns [6][10] Group 3: Gold and Alternative Assets - Gold is viewed as having good allocation value due to its characteristics as a safe-haven asset during periods of market volatility and its limited supply [7][8] - The long-term perspective on gold is influenced by the expansion of credit and the reassessment of the dollar as a reserve currency [7][8] Group 4: Risk Management and Asset Allocation - Effective risk management strategies involve a combination of top-down and bottom-up approaches to control exposure and enhance portfolio resilience [16][17] - The importance of diversifying across asset classes to mitigate risks associated with market volatility is emphasized [17][18]