China Fund News reporter Lu Huizhen Zhang Yan Beifangli
In recent one or two years,hot topic quantitative funds have been favored by investors with their good performance, and the secondary debt base combined with quantitative strategy has also quietly become popular in the industry.
According to the reporter of China Fund News, recently, some secondary debt bases with quantitative strategies have achieved good sales performance in the issuance market, and many fund companies are also considering the layout of such products. The first secondary debt base owned by a well-known quantitative fund manager in the industry has also been officially reported.
Many people in the industry said that in the past, traditional secondary debt relied more on the active management ability of fund managers, but recently some active equity funds declined, which more or less affected the performance of some "fixed income+"products with active stock selection strategy. Under such circumstances, introducing quantitative investment into secondary debt base can not only enrich the investment strategy of such products, but also give full play to the advantages of quantitative investment under the current active market of tail stocks.
Secondary debt base combined with quantitative strategy
Is quietly emerging.
In the secondary debt-based market dominated by traditional active investment, a new kind of strategy is emerging.
According to the reporter of China Fund News, some quantitative fund managers are taking the post of secondary debt base and taking the helm of the equity investment position of secondary debt base.
For example, China Merchants Anhe Bond Fund, which was established in recent months, has one fund manager, Deng Tong, who works in the quantitative investment department. The fund also wrote in the section of stock investment strategy in the prospectus that it adopts quantitative breadth investment and bottom-up stock selection methods to focus on industries and companies with low volatility and high dividends.
The fund manager of Huitianfu Steady Return Fund, another secondary debt base, is Wu Zhenxiang, deputy director of the company's index and quantitative investment department, and his product investment strategy also mentions building a portfolio through quantitative means.
Including the issuance of Bodo and Xiangxiang multi-stable debt base in the first half of this year, and the multi-factor quantitative stock selection strategy is also highlighted in its stock investment strategy.
"Behind the management of secondary debt funds, a variety of investment ideas and strategies have emerged. For example, traditionally, two fund managers, namely, stock manager and debt manager, are jointly in charge of stocks and bonds, with specialized skills. In recent years, due to the outstanding performance of quantitative public offering rights products, some secondary debt bases have been selected by quantitative fund managers on the stock side. " Chen Lianquan, director of fixed income investment of Broadcom Fund, also observed the above phenomenon.
It is worth mentioning that even in this year's depressed issuance market, these secondary debt-based sales with quantitative strategy are still remarkable. China Merchants Anhe Bond and Huitianfu's steady returns are all over 1 billion.
According to the reporter's understanding, at present, the first secondary debt base of a well-known quantitative fund manager has been reported, and many fund companies are also considering the layout of such secondary debt bases combined with quantitative strategies.
The secondary debt base is more suitable for implementing quantitative strategy.
Fit the current market style
In the view of a fund company, there are many factors for fund companies to consider the layout of such products at this stage. "First of all, with the gradual increase in the scale of' fixed income+'products such as secondary debt base, it is more difficult for active investment fund managers to select stocks, and combining quantitative means can better screen investment targets; Secondly, the number of excellent' fixed income+'fund managers is limited. On the basis of traditional active investment, enriching the stock selection strategy of secondary debt base can also create more suitable' fixed income+'products; Moreover, in the last year or two, the poor performance of some active equity funds has also affected the performance of the secondary debt base with active investment stock selection strategy to a certain extent, so fund companies have also tried to combine other new investment strategies in the secondary debt base. "
Du Zhe, general manager of the multi-asset investment department of IFC, also pointed out that at present, the main investment targets of the secondary debt base are stocks and bonds, and the traditional quantitative tools can be directly applied to the stock selection part, thus effectively enhancing the income of the stock part. In terms of bonds, the quantitative application in foreign bond field is relatively extensive, and China is still in its infancy. With the gradual maturity of the domestic bond derivatives market, it is expected that there will be more flexible and rich bond quantitative strategies.
"At present, the domestic convertible bond market has developed more mature, and the market capacity is relatively large, which is more suitable for the implementation of quantitative strategies. We have done some research on quantitative bond selection and timing of convertible bonds and achieved good results. In addition, the management of secondary debt base also involves the allocation of major assets of stocks and bonds, and there are also related quantitative models to support this. Therefore, from the product form, the secondary debt base is more suitable for the implementation of quantitative strategy. " Du Zhe said.
He also stressed that the rise of secondary debt base combined with quantitative strategy is also related to the current market style. "In recent years, the quantitative strategy is more suitable for the current market, and the product performance is relatively good. Therefore, quantifying the secondary debt base is more in line with the current market style, and the acceptance of investors is relatively higher. "
Yin Xiaohong, manager of China Merchants Anhe Bond Fund, also believes that the quantitative secondary debt base is innovative in product design, which better combines the advantages of quantitative stock selection and secondary debt base, and is conducive to the implementation of stable overall asset allocation, taking bonds as the basic assets, and at the same time using the quantitative dividend low-wave strategy, we strive to effectively enhance the overall portfolio income on the basis of bond income, and control the portfolio fluctuation in a small range, which adapts to the allocation needs of investors.
"From the past product issuance, we can also see that the secondary debt-based investor institutions account for a relatively high proportion. In addition, the investment method of quantitative stock selection has brought holders a good holding experience in the past, and the strategy has been increasingly recognized by the market." Yin Xiaohong said.
Different from the traditional secondary debt deposit
Is the equity part active or quantitative?
The secondary debt base usually has no more than 20% positions to allocate equity assets such as stocks and convertible bonds. Previously, the traditional strategic secondary debt relied more on active management, while the quantitative secondary debt was more laid out by quantitative means.
"Quantifying the equity investment of the secondary debt base is done with quantitative investment ideas, and the equity part of the traditional secondary debt base relies more on active management capabilities." Yin Xiaohong said that taking China Merchants Anhe Bond Fund as an example, the equity part adopts quantitative dividend low-wave strategy, adopts quantitative breadth investment and bottom-up stock selection method, flexibly uses various stock investment strategies, and focuses on mining industries and companies with low volatility and high dividends. The dividend low-wave related index shows the characteristics of stable long-term income and low volatility, which meets the needs of investors pursuing low volatility.
Du Zhe also believes that the investment target of quantitative secondary debt base is the same as that of traditional secondary debt base, that is, it is mainly based on stocks and bonds, and its main difference lies in the decision-making process of related investment targets. Although in theory, quantification is more a tool or means, and the source of strategy and traditional strategy are logically connected at the bottom, there are still big differences between them from the dimension of actual investment.
He also said that, for example, quantitative tools are widely used in risk control, so quantifying secondary debt base may have certain advantages in controlling portfolio risk. Implementing investment decisions through quantitative models is also conducive to reducing the interference of emotions on investment decisions and making more rational decisions. The disadvantage is that when the market style changes, the model may be adjusted relatively slowly, while the traditional investment methods may be more timely.
Rong Hao, a wealth management partner of Paipai. com, also said that the difference is mainly in the equity part. This part of the investment generally does not exceed 20%, but it often determines the profit-risk characteristic curve of the product. In the past, the equity of secondary debt mainly came from active management, while the equity of quantitative secondary debt was replaced by quantitative investment, and the overall curve would be relatively smoother.
Test the quantitative investment ability of fund companies
On the whole, the operation of such products also tests the quantitative investment strength of fund companies and the cooperation between fund managers.
"If you want to manage this kind of product with stocks and bonds, starting from the investment demands of users, I think there should be two aspects behind it: first, pay attention to the creation of excess, and second, pay attention to the management of risks. The core competence of the former is asset allocation, that is, how to determine the ratio of stocks and bonds, and the second is stock selection; The latter is to minimize the risk of products. " Chen Lianquan, director of fixed income investment of Broadcom Fund, said.
Chen Lianquan admits that under his framework, asset allocation and stock selection are solved by quantification and model at one time; In terms of risk management, we will selectively avoid the risk of permanent or unbearable big losses in advance, and will not sink credit and strategically give up credit risk. On the other hand, we will manage and balance the daily fluctuation risk in a more reasonable and scientific way through models.
Yin Xiaohong also said that such products require fund managers in charge of equity to have rich quantitative investment experience and the ability to cooperate with fixed-income fund managers; For the investment and research department, it is a further enrichment of the product line, which can provide investors with more multidimensional asset allocation and product selection; Because the quantitative investment is more dispersed, it is suitable for the market with active tail stock turnover.
Du Zhe even said that this kind of products require high quantitative skills for investment research teams and fund managers. In addition to accurately expressing investment ideas through quantitative tools, they also need to be evaluated from different quantitative perspectives, and then the shortcomings in traditional investment views need to be corrected. This is a process of continuous feedback optimization, which requires certain investment experience and quantitative skills.
"For the investment and research department, the use of quantitative tools can undoubtedly greatly improve the efficiency and effectiveness of research, which is of great significance to the improvement of the overall investment and research strength of the investment and research department. For example, at present, there are more than 870 billion convertible bonds in the convertible bond market, and there are more than 500 convertible bonds in stock. By establishing a quantitative system, the research and tracking efficiency of convertible bonds can be effectively improved, and some useful attempts and layouts have been made in this regard. " Du Zhe believes that what kind of market situation the quantitative secondary debt base adapts to depends on whether the quantitative model adopted by the product adapts to the market at that time. It is difficult to adjust the quantitative model ahead of time on the left side of the market, and there is a certain lag, which makes the quantitative model may not match the market style in stages. However, by continuously optimizing the quantitative model and combining with the traditional investment concept, the quantitative secondary debt base will better adapt to different market styles.
However, some people believe that the difficulty of such products lies in having relevant talents and strategies, especially the research and development of bond quantitative strategies in the industry is generally less.
The development prospect can be expected.
In the opinion of the interviewees, the secondary debt base that uses quantitative means to assist equity investment is suitable for investors who pursue certain income but don't want to take too much risk. In the future, more and more individual investors may understand and accept such products, and the development prospects are expected.
Yin Xiaohong bluntly said, "This kind of products are suitable for investors who don't like portfolio fluctuations too much, but are relatively optimistic about investment opportunities in the equity market; At the same time, it is also suitable for investors who have the needs and concepts of family asset allocation and are interested in diversifying risks. As a whole, such products are controlled in terms of volatility and retracement, so they are relatively friendly to the holder experience, and I am relatively optimistic about the development prospects of such products. "
"Considering that products use models more and investors need to know some professional knowledge, institutional investors may have a better understanding of quantitative strategies, higher acceptance of quantitative secondary debt base and more stable dimensions of investment cycle." Du Zhe further stated, "However, with the emphasis on investor education in China and the gradual maturity of the investment concept of individual investors, individual investors will gradually become an important participating force in such products."
For its future development opportunities, Du Zhe believes that the secondary debt base is an important supplement to the stock base and the traditional debt base, and its expected volatility and expected rate of return are between the two, which is an important product form. Quantifying the secondary debt base is an upgrade at the investment and research level on the basis of the traditional secondary debt base, so it has a good development prospect.
Rong Hao, a wealth management partner of Paipai.com, also said that the expected fluctuation of such products will be relatively small, which is suitable for investors with moderate income requirements and low retracement requirements, or funds with low tolerance for retracement. The applicability of the product is still relatively wide, more like an upgraded version of "fixed income+".