Under the net value transformation of asset management products and the substitution effect of bank financial management demand, the fixed income + fund represented by partial debt hybrid fund and secondary debt base has developed rapidly this year, with various public offering competing for layout and achieving rapid growth in scale. However, limited by the upper limit of shareholding position, some funds obtain the flexible return of portfolio through high convertible bond position in addition to equity position.
Wind data shows that, taking the secondary bond base as an example (excluding the convertible bond theme funds with high convertible bond positions), as of the end of the third quarter of this year, the average position of 251 convertible bonds held by 251 secondary bond bases (based on share consolidation) was 23.62%, up 2.69 percentage points month on month compared with the previous quarter, which is in a historically high position. Among them, 38 products with more than 50% convertible bond positions were purchased with leverage, and the market value of convertible bonds accounted for more than 100% of the net fund value.
From the perspective of shareholding position, the average holding position of the above funds is 13.84%, among which 138 products hold positions between 15% and 20%, and 49 funds hold more than 19%, approaching the upper limit of 20%.
In the partial bond hybrid funds, some funds shareholding ratio is close to the upper limit, which also increases the performance of convertible bonds.
As there is a 20% - 40% upper limit for the holding of fixed income + products such as partial bond hybrid funds and secondary bond bases, some funds have increased their convertible bond positions to 70% - 80%, and even increased leverage to increase their equity positions. Under the background of a better equity market this year, they have achieved the effect of increasing returns. An outstanding debt base manager in Beijing disclosed to reporters.
In the view of this bond based manager, the role of convertible bond assets in the portfolio of partial bond funds is as follows: first, when the fund manager anticipates that the stock market opportunity is coming, he can increase his position to convert bonds when his equity position remains unchanged, which can prevent the portfolio from fluctuating greatly, and can also strategically increase the equity market; second, convertible bond assets have the option value other than stocks and bonds, when there is systematicness It can also increase the portfolio excess return.
At present, the individual bonds in the convertible bond market are greatly differentiated, and there are many convertible bonds in various industries and themes. Each company can rely on its own stock research platform to find investment opportunities for individual bonds. As long as the positions are well controlled, and when the investment cost performance ratio is high, the return of neutral positions can be enhanced. The debt base manager said.
From the perspective of investment effect, as of November 27, the CSI convertible bond index rose by 5.28% this year, ranking first among all kinds of mainstream bond indexes. The fixed income + fund with heavy positions in convertible bonds has also achieved remarkable excess returns this year.
Wind data shows that as of November 27, 18 partial bond hybrid funds with more than 25% shareholding position and 20% convertible bond position reported in the third quarter of this year had an average yield of 17.39%, more than twice the 8.5% yield of the same type of fund in the same period. In the secondary bond base, the average yield of 68 products with more than 15% holding position and 20% convertible bond position has reached 10.86% this year, which is also higher than that of the same period in the same period 56 percentage points, and achieved a good excess return.
As a kind of financial product with both equity and debt nature, convertible bond assets play an important role in fixed income + funds and become one of the weapons to increase the income of such funds. Yang Han, a fund analyst at Shanghai Securities Fund Evaluation and Research Center, said.
The funds with increased positions and convertible bonds have achieved good overall performance this year, achieving the expected results and highlighting the effectiveness of specialized asset management. Senior fund researcher Wang Qun hang also said.
Industry suggestion to set position limit
Although the effect of yield thickening is obvious, convertible bonds are classified as bond assets and can be bought with leverage, and the volatility of such assets is significantly higher than that of pure bonds. Some insiders in the industry have said that the risk return characteristics of fixed income + products may be changed by heavy positions of convertible bonds, and the risk preference of holders can not be better matched.
Yang Han also disclosed that in the risk evaluation system of mutual fund products of Shanghai Securities, for the establishment of fund products meeting a certain period of time, the volatility level of net worth will be compared with the benchmark of performance at the same risk. When the volatility level exceeds a certain multiple, the risk level of the product will be increased. Specifically, if a fund convertible bond position is more than 80%, it can be regarded as a convertible bond theme fund. The performance evaluation standard of this kind of product should also be different from ordinary partial bond fund and secondary bond base.
From the perspective of standardizing product positioning and risk return characteristics, some industry insiders believe that the upper limit of convertible bond investment ratio should be set in the debt base, and the product types of funds with heavy positions in convertible bonds should be re classified.
Yang Han said that as early as April 2015, Shanghai Securities had issued a paper, which showed that convertible bond assets had a higher correlation with the performance of the equity market, and had a great impact on the performance of fixed income funds. Therefore, the risk return level of a small number of fund products with high convertible bond position will even be higher than that of hybrid funds, and even higher than that of common equity funds in 2014. But this kind of product, confuses in the bond fund, lets the ordinary investor difficultly to distinguish, really has the unreasonable place. It not only disrupts the classification of funds, but also interferes with the rating results of fund evaluation agencies.
Therefore, Yang Han suggests: first, taking the mature market as an example, the fund products mainly invested in convertible bonds in the United States are not classified into bond funds, but are classified as hybrid fund products. Therefore, it is suggested that the funds focusing on convertible bonds should be re classified into hybrid funds; secondly, a certain upper limit should be set for the proportion of bond funds investing in convertible bonds, which should be accumulated in the allocation proportion of stocks, so as to control the risk return level of the debt base within a certain range; thirdly, professional institutions are also required to carry out reasonable risks for such products To guide ordinary investors to buy rationally.
However, a number of industry insiders also said that heavy position convertible bonds are not the mainstream of fixed income + funds, and the holders need not worry too much.
Yang Han also said that from the data point of view, as only a small number of partial bond hybrid funds have chosen the operation mode of high convertible bonds and high equity positions, the general product scale is small and the market impact is limited. Most similar funds do not hold a high proportion of convertible bond assets, and obtaining stable income is still the core goal of such products.
Table 1: list of secondary debt bases of some positions of high equity and high convertible bonds reported in the third quarter of this year
(data source: wind deadline: November 27) editor: captain this article is from China Foundation news Author: Li shuchao editor: Zhong Qiming_ NF5619