Core Insights - The popularity of quantitative strategies has surged this year, leading to significant performance and scale growth in related products, with an average return of 48.7% for quantitative funds over the past year, and several products doubling in net value [1][2] - The number of "fixed income +" products has exceeded 3,600, highlighting a growing issue of design homogeneity, which quantitative strategies may help to differentiate [1][3] Group 1: Performance and Growth - Quantitative funds have seen substantial growth, with multiple products increasing their scale by over 1 billion yuan compared to the end of last year [2] - The average drawdown for secondary bond funds over the past year is 2.74%, while some "fixed income + quantitative" funds have significantly lower drawdowns, such as 0.42% for West China Li De Yu Feng Return Bond [2] Group 2: Market Trends and Strategies - The "fixed income + quantitative" investment model is viewed as a new blue ocean for fund companies, as few have adopted this approach, which aligns well with the core needs of "fixed income +" products [3] - The integration of quantitative strategies into "fixed income +" products is accelerating, with several new products launched this year, including Taiping Jiayu Bond and West China Li De Yu Feng Return Bond [2]

Core Viewpoint - The West Asset Management's "Ji Ji Hong" three-month holding mixed fund of funds (FOF) has triggered the termination clause and officially started the liquidation process due to its net asset value falling below 200 million yuan by May 17, 2025, leading to the failure of the company's only FOF product [2][4][14]. Fund Overview - The "Ji Ji Hong" FOF was established on May 17, 2022, and was designed with an "internal credit enhancement" feature, where fund managers subscribed with at least 10 million yuan of their own funds and committed to holding it for at least three years [4][7]. - The fund's structure showed that institutional holdings consistently exceeded individual holdings, indicating a focus on aligning the interests of the management with investors [4][6]. Performance Metrics - As of the first quarter of 2025, the A-class net value of the fund had decreased by 14.31%, while the C-class fell by 15.38%, significantly underperforming the benchmark by 16.98% and 18.05% respectively [9][12]. - The fund's total scale dropped to 0.36 billion yuan by the end of 2024 and fell below 20 million yuan by the first quarter of 2025, well below the liquidation threshold [12][14]. Management Background - Fund managers Ji Chengxiang and Liu Muling had no prior public fund management experience, with Ji having 17 years in the securities industry and Liu being a rising star in asset management [7][9]. - The fund's management faced challenges, resulting in a loss of 1.9872 million yuan, leading to the eventual liquidation of the fund [9][12]. Company Context - West Asset Management's shareholder turmoil, including the freezing of shares held by its second-largest shareholder, has contributed to a decline in investor confidence, although it did not directly affect fund operations [12][13]. - The company has a long-standing "strong bond, weak stock" structure, with over 87% of its management scale in bond and money market funds, while equity products account for less than 7% [14].

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]