Tan Changjie of Guangdong Development Fund: focus on fixed income + through market cycle

category:Finance
 Tan Changjie of Guangdong Development Fund: focus on fixed income + through market cycle


Tan Changjie, fund manager of Mixed Assets Investment Department of GF fund

Pay attention to two major objectives and dynamically allocate three types of assets

In the fund industry, Tan Changjie is the pioneer of the fixed income + strategy. He has been studying the application of this strategy since 2015. At the same time, he is also a firm practitioner of the fixed income + absolute return target fund. He not only takes the annual positive return as the goal, but also strives to control the withdrawal within 3%, striving to bring stable happiness to fund holders with medium and low risk preference.

How to achieve this in investment? Tan Changjie believes that the use of the fixed income plus strategy to pursue absolute income, we should pay attention to the two objectives of revenue and withdrawal at the same time, both of which are indispensable. For the income target, Tan Changjie called the fixed income + product as a higher-level financial management alternative to monetary funds and short-term debt funds, so as to realize the value maintenance and appreciation of assets. When bond and stock assets are in a good year, they should certainly pursue higher returns; secondly, such returns should be sustainable in the long term, so as to bring good experience to the holders.

Risk target is as important as profit target. Tan Changjie believes that investors with different risk preferences have different risk tolerance. He will determine the risk level of the portfolio based on investor demand and product positioning, strictly manage the risk and control the portfolio withdrawal. Among them, he has accumulated experience in practice to control portfolio volatility through the allocation ratio of stock assets. I will set my stock position at 10 times the maximum withdrawal target. For example, if the maximum pullback target for a product is 2%, then the stock position cap is 20%.

In the specific fund management, Tan Changjie will achieve the above objectives through refined asset allocation strategy. From the perspective of income, he divided assets into three categories. One is the assets with definite return, including coupon income and innovation income. Second, the assets with approximate rate of return, represented by debt convertible bonds and medium and long-term interest rate bonds, mainly obtain excess returns through band operation and timely stop earnings. The second category is the increase in the stock market and the main investment opportunities.

Tan Changjie said that fixed income plus is a strategy that focuses on the investment process. There are many sub item assets in the above three categories of assets. If there is a certain return probability for which type of asset, he will replace the coupon asset in the bottom position according to the probability and the excess return space to make dynamic allocation.

In addition, Tan Changjie has his own characteristics in the choice of asset allocation. For example, in pure debt assets, he only does short message debt and long-term interest rate debt, instead of sinking credit qualification and leverage income. In his opinion, the main excess return of fixed income + strategy products comes from asset allocation and industry selection at the stock level. The main function of high-grade short-term and medium-term credit bonds with bottom positions is to provide a safety cushion for the portfolio. Therefore, he focuses on asset allocation and industry allocation of stocks, rather than traditional credit strategy or leverage strategy.

Coupon protection to fully grasp the distribution period of excess return

The fourth quarter is a quarter with more uncertain factors. The A-share market fluctuates again, and the fixed income + strategic fund is sought after by the market. In this regard, Tan Changjie believes that in the bull market with upward stock trend, investors prefer to choose equity funds with high positions. As the stock market moves into shock, the fixed income + strategy with the characteristics of advance can attack and retreat can be kept has gradually become an important choice for investors to allocate assets.

Combined with the macroeconomic environment, market liquidity, value of equity and debt assets, valuation level and other factors, Tan Changjie believes that the fourth quarter is the layout period of fixed income + strategic products. For bond assets, the coupon yield of short-term bonds is relatively high. The yield of AAA state-owned enterprise bonds in two years is 3.5-3.8%, and the absolute yield level can beat most of monetary funds and short-term bank financial products.

For the long-term interest rate bonds whose yield level has rebounded to close to the historical central level, Tan Changjie believes that the current economic situation is improving, and the loose monetary policy is gradually withdrawing. It is expected that the long-term interest rate bonds may be in a shock adjustment trend in the next two quarters. However, looking at the next half a year or even a year, this kind of asset ratio can bring excess returns to the portfolio, which can be gradually distributed at the beginning of next year.

As for convertible bonds, Tan Changjie judges that bond market adjustment and stock market shocks are not conducive to the improvement of the valuation of convertible bonds. However, some convertible bonds have better opportunities for individual bonds.

In terms of equity assets, Tan Changjie pointed out that the most relaxed period of macroeconomic policies has passed, and it is more difficult to improve the valuation of equity assets. In the future, it depends on the certainty of market demand and the clarity of corporate profit recovery. Among them, he focused on two major sectors. One is government investment. The main reason is that local government bonds are issued more this year, the government consumption is more certain, and the follow-up focus on infrastructure, military industry and government support plate opportunities. Second, overseas demand. After the end of the epidemic, the demand rate will increase explosively. GF Hengtong 6-month holding hybrid fund (A: 010036, C: 010038) to be managed by Tan Changjie will be issued from October 21 to October 23. The proportion of the funds stock investment in the fund assets is 0-30% (of which the proportion of investment in Hong Kong stock connect is not more than 50%), and the credit bonds invested are AA + or above. Tan Changjie will again use the fixed income plus strategy to take charge of the fund. Based on the above judgment, Tan Changjie believes that the better strategy for building a position is to allocate assets with certain returns, and to obtain better protection for portfolio bottom positions. Secondly, the risk assets are adjusted dynamically, and the risks are controlled through the decentralized allocation of the industry, so as to smooth through the shocks and obtain excess returns. Source: editor in charge of mass news: Chen Tiqiang_ NB6485

In terms of equity assets, Tan Changjie pointed out that the most relaxed period of macroeconomic policies has passed, and it is more difficult to improve the valuation of equity assets. In the future, it depends on the certainty of market demand and the clarity of corporate profit recovery. Among them, he focused on two major sectors. One is government investment. The main reason is that local government bonds are issued more this year, the government consumption is more certain, and the follow-up focus on infrastructure, military industry and government support plate opportunities. Second, overseas demand. After the end of the epidemic, the demand rate will increase explosively.

GF Hengtong 6-month holding hybrid fund (A: 010036, C: 010038) to be managed by Tan Changjie will be issued from October 21 to October 23. The proportion of the funds stock investment in the fund assets is 0-30% (of which the proportion of investment in Hong Kong stock connect is not more than 50%), and the credit bonds invested are AA + or above. Tan Changjie will again use the fixed income plus strategy to take charge of the fund.

Based on the above judgment, Tan Changjie believes that the better strategy for building a position is to allocate assets with certain returns, and to obtain better protection for portfolio bottom positions. Secondly, the risk assets are adjusted dynamically, and the risks are controlled through the decentralized allocation of the industry, so as to smooth through the shocks and obtain excess returns.