Core Insights - 2025 is expected to be a significant year for "fixed income +" with continuous growth in performance and scale, providing tangible benefits to holders through limited product drawdowns and absolute returns [1] Group 1: Performance Highlights - As of September 30, several "fixed income +" products from China Merchants Fund have achieved record high returns over the past year, including: - China Merchants Anben Zengli Bond A with a return of 17.27% - China Merchants Min'an Zengyi Bond A with a return of 13.45% - China Merchants Anze Wenli 9-month Bond with a return of 12.98% - China Merchants Ruitai 1-year Mixed A with a return of 10.80% - China Merchants Ruize 1-year Mixed A with a return of 9.59% - China Merchants Credit Enhanced Bond A with a return of 8.18% - China Merchants Ruixiang 1-year Mixed A with a return of 10.79% - China Merchants Ruile 6-month Mixed A with a return of 9.77% - China Merchants Anyi Stable Bond A with a return of 5.07% [1] Group 2: Product Development - The evolution of "fixed income +" at China Merchants Fund began with stock-bond allocation strategies, starting with the launch of the China Merchants Ruiqing Mixed Fund in 2016 and the China Merchants Ruiwen Fund in 2019, which adopted a "fixed income +" model [2] - The "Rui series" is recognized as an early entrant in risk budget management within the industry, focusing on active risk budget management to cater to different risk preferences of clients [2] Group 3: Team and Strategy - China Merchants Fund employs a diverse approach to cater to varying risk preferences, with high-wave products like China Merchants Anben Zengli and China Merchants Min'an Zengyi targeting higher yield elasticity, achieving over 10% returns this year [3] - Low-wave products, represented by China Merchants Anhe and China Merchants Ankang, utilize quantitative strategies focusing on low volatility and high dividend factors to align with the risk preferences of individual investors [3] Group 4: Research and Culture - The diversification of "fixed income +" necessitates a comprehensive and refined approach to research, extending beyond traditional stock-bond allocations to include macroeconomic analysis, industry research, and quantitative strategies [4] - An open research culture at China Merchants Fund fosters collaboration across departments, enhancing the potential for innovation and continuous improvement in "fixed income +" management [5]

Core Viewpoint - The year 2025 marks significant growth for "fixed income +" products, with record performance and increasing scale, providing tangible benefits to holders through limited drawdowns and absolute returns [1] Group 1: Performance and Product Offerings - As of September 30, 2025, several "fixed income +" products from China Merchants Fund achieved impressive returns: - The high volatility product, China Merchants Anben Zengli Bond A, yielded 17.27% - China Merchants Min'an Zengyi Bond A returned 13.45% - China Merchants Anze Stable Bond (9-month holding) achieved 12.98% - The medium volatility product, China Merchants Ruitai (1-year holding) yielded 10.80% - China Merchants Ruize (1-year holding) returned 9.59% - China Merchants Credit Enhancement Bond A yielded 8.18% - The low volatility product, China Merchants Ruixiang (1-year holding) achieved 10.79% - China Merchants Ruile (6-month holding) returned 9.77% - China Merchants Anyi Stable Bond A yielded 5.07% [1] Group 2: Evolution of "Fixed Income +" Strategy - The "fixed income +" concept has evolved from a simple "bond + stock" model to a diversified product line, including various risk-return profiles [2][3] - China Merchants Fund has been a pioneer in the "fixed income +" space, combining bond and stock strategies since the launch of its first product, China Merchants Ruiqing Mixed Fund, in 2016 [2] - The fund has developed a risk budget management model, focusing on controlling drawdowns while aiming for absolute returns [3] Group 3: Diverse Product Lines and Client Segmentation - The product line now includes various types of funds, such as primary and secondary bond funds, mixed funds, and flexible allocation funds, catering to different risk preferences [4] - The fund's strategy includes a mix of asset classes, such as A-shares, Hong Kong stocks, US stocks, convertible bonds, commodities, and REITs, employing various strategies like quantitative enhancement and low-volatility dividend strategies [5][6] - The management team consists of diverse fund managers with different investment styles, ensuring tailored solutions for various client needs [6] Group 4: Open Research Culture and Innovation - An open research culture at China Merchants Fund fosters collaboration across departments, enhancing the management of "fixed income +" products [7][8] - The firm emphasizes a focus on absolute returns, ensuring that all products and investment teams prioritize the interests of holders [8]

Core Viewpoint - 2025 is expected to be a significant year for "Fixed Income +" with continuous growth in performance and scale, providing tangible benefits to holders through limited product drawdowns and achieving absolute returns, with net values reaching new highs despite market volatility [1]. Group 1: Performance and Product Development - As a leading manager in the "Fixed Income +" sector, China Merchants Fund has seen multiple products reach new highs over the past year, with specific products like China Merchants Anben Zengli Bond A yielding 17.27% and China Merchants Min'an Zengyi Bond A yielding 13.45% [2]. - The "Fixed Income +" product line has evolved from a simple "bond + stock" model to a diversified risk spectrum, with various products tailored to different risk appetites, including high, medium, and low volatility options [3][4]. Group 2: Risk Management and Investment Strategy - The company has pioneered a risk budget management model, focusing on controlling drawdowns and ensuring that products meet the return expectations of clients with varying risk preferences [5][6]. - The investment strategy has expanded to include a wide range of asset classes and strategies, such as quantitative enhancement, low-volatility dividends, and balanced allocations, allowing for a more tailored approach to different client needs [7][8]. Group 3: Research and Cultural Development - The evolution of "Fixed Income +" requires a comprehensive and refined approach to research, integrating macroeconomic analysis, industry research, and quantitative strategies, supported by a collaborative and open research culture [10][11]. - The open culture within the investment team fosters innovation and adaptability, enabling the company to continuously enhance its "Fixed Income +" offerings and meet the diverse needs of its client base [9][12].