The average yield of bond funds was 3.27percent, and the performance of convertible bond funds was outstanding

category:Finance
 The average yield of bond funds was 3.27percent, and the performance of convertible bond funds was outstanding


The overall performance of debt base is poor

Outstanding performance of convertible bond products

In 2020, the market liquidity is loose, the interest rate is going down, the default risk affects the security of the bond market, the bond market is depressed, and the overall return rate of the bond fund is poor.

According to wind data, as of December 29, the average annual yield of 2326 bond funds in the whole market (combined statistics of each share, excluding index funds) was 3.27%, and 118 funds failed to obtain positive returns, with the worst performing fund losing 25%. In terms of classification, the average annual return of pure debt fund (including medium and long-term pure debt, short-term pure debt and primary debt base) is 2.38%; the average annual return of secondary debt base is 7.76%.

The poor overall return highlights the performance of convertible bond funds. Since the beginning of this year, 39 convertible bond funds have achieved a yield of 14.67%, which is significantly ahead of the overall performance level of the bond base. In this years top 50 bond funds, nearly half of them are convertible bond funds.

As of December 29, southern Changyuan convertible bond a led all debt bases with a yield of 37.61%, while Penghua convertible bond a achieved a return of 35.98%. In addition, Huaxia convertible bond enhanced a, Nanfang Xiyuan convertible bond and Guangfa convertible bond a obtained yields of 34.27%, 28.81% and 26.19% respectively. BOC convertible bond enhancement a, Huashang Convertible Bond A and Boshi convertible bond enhancement a achieved a return rate of more than 20% within the year, and the net value growth rate of another 20 fund units was between 10% and 20%.

A fixed income fund manager in South China said, in this year, the convertible bond market has undergone many changes. In the first half of the year, the bond market was crazy, and the differentiation began to expand gradually in the middle of the year. As of December 30, the index of convertible bonds has increased by 12.98% in the year, and nearly 50% since last year. Recently, the convertible bond market has been adjusted. Some convertible bonds have broken down on the first day of listing, and they are no longer making new money. When the market is cold, the net value of some convertible bond funds is also withdrawn. Nevertheless, thanks to the good performance of the convertible bond market in the early stage, the annual performance of the convertible bond fund is still brilliant.

Convertible bonds will continue to differentiate next year

Looking forward to next year, a number of public offerings believe that both fundamentals and policies can form a certain support for the strength of the bond market, and the bond market may show investment opportunities. In terms of convertible bonds, they may be able to walk out of the structural market. Low price bonds can be sold back and repaired appropriately, but credit risk should be focused on.

Haifutong Fund believes that in 2021, there may be a trend of stable currency and tight credit, with credit expansion approaching the peak. But we still need to wait from the credit inflection point to the interest rate inflection point. The probability of interest rate debt will show a more volatile pattern, waiting for the inflection point. In terms of credit debt, the fundamentals of credit environment will improve next year, but the financing conditions will be weakened. Weak state-owned enterprises and tail urban investment companies based on trust still need to be on guard. It is suggested that the provinces with controllable debt burden and strong industrial strength should be selected, and medium and high-grade credit debt can be extended.

Li Haipeng, vice president and chief investment officer of China Southern Fund (fixed income), said he was confident of the turning point of bond market from bear to bull. This years macro-economy is low before and high after. Affected by the epidemic situation at the beginning of the year, the year-on-year growth rate of macro-economy has dropped to a negative number. In the second, third and fourth quarters, the macro-economy will gradually recover and rebound. It is expected that the macro-economy will reach a new high in the first quarter of 2021, reaching the new high of this round of small cycle. Then from the second quarter, the macro-economy will gradually return to the original range, and return to the past Talk about the new economic normal. In addition, there will be little inflation pressure next year, which will provide a relatively favorable investment environment for the bond market. From the perspective of cycle, the bond market presents a relatively obvious macro rule of 3-4-year small cycle, which is relatively a bull market, a balanced market and a bear market, which is in line with the fluctuation of Chinas macro-economy and fiscal and monetary policy. Moreover, the bond market tends to be bullish and bearish, which is a rule summed up in the past 20 years. According to the average one-year cycle of a bear market, the bear market that started in May 2020 should turn around in the first half of next year.

Fixed income + strategic fund has gradually become a new favorite in the financial market with the advantage of steady progress. As an aggressive and defensive investment target, convertible bonds have become an indispensable part of the fixed income plus portfolio. Haifutong Fund believes that next years convertible bonds will still conform to the trend of the stock market. It is more about seizing the opportunities of the industry and individual bonds, focusing on Pro cyclical in the short and medium term, and focusing on technology and consumption in the long and medium term. Jingshun Great Wall Fund believes that the current convertible bond market is relatively strong, and the premium rate is at a neutral level. In the future, there may still be some structural opportunities in the profit improvement cycle. We can focus on the pro cyclical varieties with low valuation of positive stocks and the companys profit is expected to recover in the first half of next year. For example, some mechanical, chemical and transportation products, bank and non bank convertible bonds are still at a low valuation, which has a certain value. Source: Ren Hui, editor in charge of Securities Times_ NBJ9607

Fixed income + strategic fund has gradually become a new favorite in the financial market with the advantage of steady progress. As an aggressive and defensive investment target, convertible bonds have become an indispensable part of the fixed income plus portfolio. Haifutong Fund believes that next years convertible bonds will still conform to the trend of the stock market. It is more about seizing the opportunities of the industry and individual bonds, focusing on Pro cyclical in the short and medium term, and focusing on technology and consumption in the long and medium term.

Jingshun Great Wall Fund believes that the current convertible bond market is relatively strong, and the premium rate is at a neutral level. In the future, there may still be some structural opportunities in the profit improvement cycle. We can focus on the pro cyclical varieties with low valuation of positive stocks and the companys profit is expected to recover in the first half of next year. For example, some mechanical, chemical and transportation products, bank and non bank convertible bonds are still at a low valuation, which has a certain value.