The question of whether bond funds still have value resonates significantly within the discussions of various internet-based fund sales platforms todayOver the past two years, there has been a notable surge in public interest regarding the bond marketThis phenomenon reflects a collective shift toward safer investment strategies, particularly among individual investors seeking stability amidst global economic fluctuations.

Recent statistics from the Shanghai Securities Research Institute reveal that since the comprehensive implementation of the Asset Management New Regulations, a considerable influx of retail investor funds has been directed into public offering stable productsSpecifically, the average holding ratio of personal investors in these products increased from 25.61% in 2022 to 27.48% in 2023. This upswing is indicative of an urgent demand from individual investors for secure financial management options, suggesting a growing trend toward retail-oriented bond fund sales.

The prevailing desire for stability is palpableIn a world where guaranteed returns seem a relic of the past, individuals are more discerning than ever about their investment choicesAs they navigate through diverse options, some investors are opting for 'Fixed Income Plus' funds that promise higher potential risks and returns, while others gravitate towards more flexible short-term bond productsSteadfast believers in the safety of investment may choose credit bonds or municipal bonds, while others simply prefer the conventional security offered by money market funds.

In the face of such an array of demands from the populace, asset management institutions are tasked with the challenge of tailoring a comprehensive suite of products that caters to various investment stages and goalsThey must enhance their platforms to ensure consistent delivery of performance while underpinning deep research and strong productivity capabilities.

The foundational purpose of public funds remains to furnish ordinary citizens with tools for asset allocation

Advertisements

By leveraging the expertise of fund managers in bond portfolio management, even those unfamiliar with major asset types can potentially navigate economic cycles effectivelyFor instance, Jiash Investment Fund has been keen on establishing itself as a leader in this space by solidifying its asset allocation core, offering unique solutions that come with a high degree of stability.

Moreover, the demand for better financial products is boomingData from China Merchants Bank indicates that as of the end of 2022, the total investable assets available to Chinese residents reached approximately 278 trillion yuan, with projections suggesting the figure could surpass 300 trillion yuan by the end of 2024. This highlights a staggering demand for wealth management solutions, where quality products that balance return potential with user experience continue to be hard to find.

Public funds, therefore, need to anchor their efforts in providing a diversity of fund products to best meet the varying objectives and stages of their customers’ investment journeysThey are continuously seeking breakthroughs to adapt and respond effectively.

As part of their ongoing strategy to enhance investment research, Jiash’s fixed income investment framework focuses intently on core segments such as money markets, short-term bonds, purely fixed income, and 'Fixed Income Plus' offeringsIn August 2023, they introduced a refined concept of "Three Funds for Stable Investment," categorizing investments into liquidity reserves, surplus funds, and long-term investments to better close the gap in investor demands.

The Jiash Active Money Wealth Management platform has announced new offerings this September, including the launch of the Jiash Quarterly Appreciation Fund, aimed at investors with liquid funds of three months or more

Advertisements

This underscores their commitment to providing fresh financial management avenues that align with the evolving needs of consumers.

In 2023 alone, Jiash has reported that 28 of its bond fund products have achieved returns of over 3%. Over a three-year period from mid-2021 to mid-2024, more than 20 of Jiash’s fixed income products have yielded returns exceeding 10%. These promising statistics are not mere happenstance; they signify a robust ability to align assets with client needs through meticulous research and strategic matching.

Additionally, heightened demands for superior investment research capabilities are becoming increasingly vital.

As we transition into a low-interest-rate environment, the conventional paradigms governing fixed income research must evolveEntities must adopt a broader range of investment strategies and asset allocation methodologies to remain competitive.

Changes in the demand for wealth management solutions among residents suggest that public funds must bolster their fixed income initiatives significantlyEstablishing a platform centered on wide-ranging strategies, comprehensive product offerings, and a specialized talent pool will be crucial for succeeding in this increasingly competitive landscape.

Jiash Fund is recognized as one of the pioneering institutions to focus on multi-strategy and multi-asset configurations within the "large fixed income" sectorTheir well-established foundation serves as a bedrock for expansive and robust fixed income operations, exemplified in areas such as major asset allocation, credit research, transaction efficacy, and market risk management.

For example, Jiash was among the first in the industry to establish a credit research team, which spans various industries and categories

Advertisements

Advertisements

Advertisements