Core Insights - The article emphasizes the advantages of semi-annual rebalancing of dividend funds, which can lead to an additional 5% return compared to annual rebalancing [1] Group 1: Timing and Performance - Semi-annual rebalancing offers a significant timing advantage, allowing funds to capture dividends from newly announced high-dividend stocks earlier than annual rebalancing funds [2] - For instance, in May 2024, the index included Shaanxi Coal, which had a proposed dividend yield of 9.2%, allowing investors to benefit from a complete dividend payout before the stock price increased by 15% [2] Group 2: Risk Management - The semi-annual rebalancing strategy helps avoid "dividend traps" often set by cyclical stocks, which may announce high dividends but later report poor performance [3] - In December 2023, the CSI 800 Dividend Low Volatility Index removed a coal stock that saw its dividend yield plummet from 12% to 3%, thus avoiding a subsequent 40% drop in stock price [3] Group 3: Cost Efficiency - Funds with semi-annual rebalancing maintain a lower turnover rate of 20%-30%, which reduces transaction costs compared to high-frequency rebalancing funds that exceed 50% turnover [4] - For example, a 10,000 yuan investment could yield an additional 4,000 yuan over five years due to lower trading fees associated with semi-annual rebalancing [4] Group 4: Recommended Dividend Indices - The CSI 800 Dividend Low Volatility Index includes 100 stocks with a diversified industry weight, effectively mitigating risks from any single sector [5] - The CSI Dividend Quality Index focuses on 50 stocks with stable earnings, ensuring that only companies with a return on equity (ROE) greater than 15% are included [6] - The Hang Seng High Dividend Low Volatility Index has a safety check for stocks with yields over 7%, successfully avoiding a stock that later fell by 60% [7] - The S&P A-Share Large Cap Dividend Low Volatility Index has shown strong defensive performance, with a maximum drawdown of 11.3%, significantly lower than the 22.7% drawdown of the CSI 300 [8] Group 5: Tax Efficiency - Semi-annual rebalancing strategies can minimize tax liabilities by allowing investors to hold stocks longer, thus reducing the tax burden associated with short-term holdings [12] - The CSI 300 Dividend Low Volatility Index has a tax cost of only 0.2%, compared to 0.6% for quarterly rebalancing funds [12] Group 6: Portfolio Strategy - Combining different types of dividend funds can enhance overall returns while providing risk diversification [15] - The West China State-Owned Enterprise Dividend Index has outperformed its benchmark by 22 percentage points over five years, focusing on stocks with high dividend yields and state-owned enterprise reforms [15]

Core Viewpoint - The article discusses the challenges faced by investors in mutual funds due to redemption behaviors leading to friction costs, and how the company aims to innovate strategies to reduce volatility and enhance investor trust through a new "fixed income plus" fund. Group 1: Fund Strategy - The new "fixed income plus" fund, West China Asset Management Yu Feng Return Bond, will implement a "constant equity-debt ratio + central enterprise barbell strategy" to address the difficulties investors face when participating in fund investments through "buy high, sell low" behaviors [1][2] - The fund will maintain an equity position of 16%-20%, with adjustments made within ten trading days if the threshold is exceeded, aiming to counteract human behavioral weaknesses and stabilize the market [2] Group 2: Asset Selection - The fund emphasizes selecting assets with long-term value support, particularly focusing on central enterprises as key investment targets [3][4] - The barbell strategy will allocate 20% of the equity position to high-dividend central enterprise leaders for stability, while also investing in mid-cap central enterprises to seek alpha returns through quantitative multi-factor strategies [4][5] Group 3: Bond Investment Logic - The bond portion of the fund will serve as a "ballast," primarily composed of high-grade credit bonds to control credit risk, with 80% of the fund's assets allocated to this segment [6][7] - The fund manager is optimistic about local government bonds due to their higher yield compared to national bonds and expects liquidity to improve by 2025, enhancing their trading value [7] Group 4: Industry Trends - The asset management industry is shifting from focusing solely on returns to enhancing investor experience, with the company's "fixed income plus" strategy representing an innovative approach to reduce volatility and build investor trust [8]