Core Viewpoint - The investment landscape in 2025 has shown a divergence between "weak bonds and strong stocks," with pure bond funds facing challenges while "fixed income+" funds have gained popularity among investors seeking stable yet enhanced returns [1][2]. Group 1: Performance of Investment Funds - As of February 18, 2025, over 1,200 pure bond funds reported negative returns, with an average yield of -0.03%, primarily due to tight liquidity and policy adjustments [2]. - In contrast, "fixed income+" funds achieved a total profit of 38.928 billion yuan in the third quarter, benefiting from a strategy that combines bond foundations with equity enhancements [2][7]. Group 2: Fund Selection Criteria - The selection of stable investment funds can be guided by three core dimensions: risk-return ratios, product mechanisms, and the strength of fund managers and companies [3][9]. - Key indicators for evaluating funds include the Calmar ratio and Sharpe ratio, with a Calmar ratio above 2 considered high value; for instance, the Calmar ratio of the ICBC Double Xi 6-month bond fund reached 4.93, significantly higher than the industry average [11]. Group 3: Fund Mechanisms and Fees - The China Securities Regulatory Commission (CSRC) encourages funds to implement holding period mechanisms, requiring fund managers to hold their funds for at least one year, which aligns with the market principle of achieving long-term returns [14]. - Fee structures vary, with A-class fees suitable for long-term holdings and C-class fees for short-term allocations, exemplified by the suitability of the China Merchants Anben Growth Bond A-class for long-term investment [14]. Group 4: Manager and Company Strength - New regulations mandate that fund managers invest at least 40% of their annual performance compensation in the funds they manage, fostering alignment of interests between managers and investors [17]. - The selection process should consider the manager's tenure, experience with similar products, and the research capabilities of the managing company, with leading firms like E Fund and China Merchants Fund demonstrating advantages in bond selection and risk control [17].

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]