Core Viewpoint - The A-share market is experiencing a volatile atmosphere as it hovers above 3800 points, creating a dilemma for investors between exiting the market and holding onto positions, with "fixed income +" products offering a balanced approach for both offensive and defensive strategies [1] Investment Strategy - "Fixed income +" products operate on a mechanism of "fixed income as a base, equity as an enhancement," supported by a diversified asset allocation system [1] - The focus is on the methodology of how to enhance returns rather than just the type of assets involved [2] Fund Management Approach - Fund manager Feng Fan employs a combination of "portfolio management + quantitative methods," emphasizing a top-down approach to asset balance and risk control [3] - The Silver Hua Enhanced Income Bond Fund, managed by Feng Fan, aims for a "medium-high volatility fixed income +" strategy, targeting long-term risk-reward advantages rather than short-term performance [3][8] Performance Metrics - As of June 30, the Silver Hua Enhanced Income Bond A achieved a one-year cumulative return of 9.46%, outperforming its benchmark by 4.36%, ranking in the top 14% among similar funds [3] Transition to Quantitative Strategies - Feng Fan transitioned from active management to quantitative strategies, aiming to reduce reliance on subjective views and enhance the sustainability of returns [8] - The strategy includes a systematic approach to stock selection and bond investment, focusing on risk-reward asymmetry [9][10] Tactical Asset Allocation Principles - Feng Fan's tactical asset allocation is guided by three principles: matching current macro conditions rather than predicting them, utilizing multi-asset strategies for synergy, and implementing contrarian moves during extreme market pessimism [11][12] - A scoring framework based on win rates and odds is used to assess macroeconomic conditions and asset pricing, updated monthly but providing clear signals only a few times a year [13] Conclusion - The application of quantitative strategies is rooted in an understanding of active investment, aiming for a structured and rule-based expression of investment methodologies [14] - Feng Fan emphasizes the importance of maintaining an open mindset and effective diligence for continuous improvement in investment practices [15][16]

Core Viewpoint - The Shanghai Composite Index has surpassed the key level of 3600 points for the first time this year, indicating a rise in equity asset investment enthusiasm, but the continuous increase raises concerns about potential overvaluation [1] Group 1: "Fixed Income +" Strategy - "Fixed Income +" consists of two parts: a solid foundation of fixed income assets and an additional allocation to equities and convertible bonds to seek higher returns [3] - The strategy can be categorized into three types based on equity allocation: - Low-volatility "Fixed Income +": Equity allocation under 10%, focusing on controlling drawdowns and volatility [4] - Medium-volatility "Fixed Income +": Equity allocation between 5%-20%, balancing risk and return [5] - High-volatility "Fixed Income +": Equity allocation between 20%-30%, aiming for higher returns with increased volatility [5] - For low-risk investors or those inexperienced in equity investments, starting with "Fixed Income +" may align better with their risk tolerance, offering a stable return from fixed income and potential upside from equity exposure [5] Group 2: Selection of "Fixed Income +" Products - Investors should consider their risk preferences alongside the product positioning, historical performance, investment strategies, and volatility characteristics when selecting "Fixed Income +" products [7] - Example: Yinhua Fund has established a series of "Fixed Income +" products with varying strategies to meet diverse investor needs, such as: - Yinhua Enhanced Income Bond: - Equity allocation: 17.09% in stocks and 23.33% in convertible bonds - Performance: 9.46% growth over the past year, with a cumulative return of 131.64% since inception, ranking in the top 12% of its category [7] - Yinhua Vision Bond: - Equity allocation: 15.28% in stocks and 11.70% in convertible bonds - Performance: 7.50% growth over the past year, ranking in the top quarter of its category [7] Group 3: Investment Focus and Strategies - The investment strategy emphasizes a scientific multi-strategy management framework to achieve a favorable risk-return ratio, focusing on growth-oriented stocks and balanced convertible bonds [10] - The fund manager indicates a positive outlook for equity assets in the third quarter, focusing on sectors with improving fundamentals, stable dividend expectations, and industries with potential future profitability trends [11][12]