Report Summary 1. Report Industry Investment Rating The document does not mention the industry investment rating. 2. Core View of the Report The report focuses on Western Lead Fund's fund manager Sheng Fengyan, highlighting his "three - part active and seven - part quantitative" investment philosophy to create high - cost - effective central enterprise fixed - income plus products. His investment framework combines subjective judgment and quantitative models, and the products show excellent risk - return characteristics and unique investment styles [3]. 3. Summary According to the Catalog 3.1 Fund Manager Introduction - Sheng Fengyan has 11 years of securities experience, graduated from Fudan University, and joined Western Lead Fund in 2016. He manages 10 products with a total scale of 6.336 billion yuan, including two fixed - income plus funds [3][9]. 3.2 Fixed - income Plus Fund Investment Framework Design - **Investment Philosophy**: "Seven - part quantitative and three - part subjective." Quantitative models handle short - cycle decisions, while subjective judgment is for long - term market trend analysis [11]. - **Asset Allocation**: Use a constant stock position (24% - 30%) to control risk [12]. - **Stock Investment Strategy**: Build a central enterprise barbell strategy with 50% large - cap central enterprise dividend stocks and 50% small - cap central enterprise stocks to reduce portfolio volatility [12]. - **Risk Control System**: Adopt front - end risk control, select assets with a bottom, use the barbell strategy, prefer strategies with downward alpha, and balance market value and industry dispersion [12]. - **Quantitative Model**: Use different quantitative models for central enterprise dividend and small - cap central enterprise stocks [13]. 3.3 Income and Risk Characteristics - **Basic Income and Risk Characteristics**: As of August 8, 2025, the product's cumulative return was 14.83%, 7.05% higher than the Wind secondary bond fund index. The Calmar ratio reached 7.74. Multiple core indicators are in the top 10% of the same - position fixed - income plus products, and the Calmar and Sharpe ratios are in the top 1% [15][17]. - **Profitability Effect**: The probability of making a profit for investors increases with the holding time. The probability of making a profit for 3, 6, and 9 - month holding periods is 93.82%, 100%, and 100% respectively [21]. 3.4 Investment Style - **Asset Allocation**: Use a constant position mechanism, with a stock position between 24% - 30%, mainly increasing returns through stock and stock index futures investments, and do not invest in convertible bonds [24]. - **Bond Investment**: Invest mainly in 5 - 7 - year interest - rate bonds, with high investment concentration. The portfolio has a long duration (about 7.53 years) and low leverage, mainly for liquidity management [29][31]. - **Stock Investment**: Adopt the central enterprise barbell strategy, focusing on central enterprise dividend stocks for a stable income base and small - cap central enterprise stocks for income enhancement. The industry allocation is relatively balanced, covering 26 Shenwan primary industries [38]. - **Income Split**: In the second half of 2024, stock investment contributed about 4.35% of the income, leading 84.60% of the same - position products. Bond investment contributed about 3.81% of the income, mainly from floating income [46].

Core Viewpoint - The bond market has experienced significant adjustments this year, while the stock market has seen an increase led by technology stocks, followed by fluctuations due to "reciprocal tariffs" [1] Group 1: Performance of "Fixed Income +" Products - Over 60% of "Fixed Income +" funds have shown positive year-to-date net asset value growth as of April 18 [2][4] - Nearly 200 funds reached new highs in net asset value in April, indicating strong performance in a volatile market [4] Group 2: Future Outlook for "Fixed Income +" Strategies - Fund managers believe that "Fixed Income +" strategies are likely to continue generating returns, with expectations for further product expansion [3][5] - The current capital market activity is driven by various factors, including economic stabilization, technological innovation, and geopolitical resilience, which support the value discovery of domestic assets [5] Group 3: Asset Allocation Insights - The allocation to equity and convertible bond assets has yielded good returns for funds, with some funds reporting over 6% net asset value growth in the first quarter [8] - Convertible bonds are seen as having strong configuration value due to their performance in the current interest rate environment [8][9] Group 4: Management Strategies for "Fixed Income +" Funds - There is a trend of incorporating active equity fund managers into the management of "Fixed Income +" products to leverage their stock-picking abilities [10][11] - The ability to manage across multiple asset classes and maintain a balance between equity and fixed income stability is crucial for success in this space [11] Group 5: Market Conditions and Sector Focus - The A-share market is expected to focus on domestic factors, with a gradual stabilization and subsequent rise anticipated [12] - In terms of sector allocation, there is an emphasis on consumer services and industrial sectors, while maintaining a focus on credit quality and yield in fixed income investments [12]