This article**: Times Weekly Author: Lu Zeqiang.
The bond market ended 2023 perfectly.
Wind data shows that in 2023, the total wealth index of China Bond will be at 467% of the income level, the average return of medium and long-term pure debt is 3Around 5%, the yield level of the credit bond index is at 4Around 8%, judging from the past few years, the yield of the bond market in 2023 has a relatively good performance among major asset classes.
CCB** is preparing to set up a bond product, CCB New Century Mövenpick 3-month holding period bond investment** (hereinafter referred to as "CCB New Century Mövenpick"), which is a Tier 1 bond**, with more than 80% invested in pure debt assets and less than 20% invested in convertible bonds.
At the helm of this bond base is Xu Hui, a veteran with 17 years of experience.
The proportion of debt-based investment in convertible bonds does not exceed 20%, and Xu Hui's experience advantages are highlighted
Xu Hui joined CCB in April 2011 as a senior investment manager in the special account investment department, mainly engaged in fixed income ** investment, and later transferred to the ** manager of public products. Prior to that, from June 2008 to March 2011, Xu Hui worked at China Merchants ** as the head of the department's proprietary team, responsible for the proprietary investment of corporate bonds.
Xu Hui has 17 years of experience, solid research skills, rich investment experience, and his career spans banks, brokers, and is familiar with the characteristics of various capital operations. Since 2011, he has been engaged in investment work in the investment department of CCB's ** special account, mainly responsible for the investment management of fixed income accounts, and has excellent investment performance and has been praised by clients, and has rich investment experience.
Regarding Xu Hui's investment philosophy, he believes that on the basis of judging the direction of macroeconomic changes, it is necessary to dynamically adjust the leverage, duration and structure of the portfolio. In the investment process, we should pay attention to the matching degree between the risk characteristics of the account and the investment strategy, and formulate a reasonable investment strategy based on the judgment of the future market.
Xu Hui is good at grasping the fundamental-driven trend from top to bottom, grasping the medium-term trend opportunities of bonds, and is able to allocate large types of assets through economic cyclical fluctuations, and control drawdowns through asset allocation.
This product is Xu Hui's first public offering product, and the reason why he chose this product is also related to Xu Hui's many years of experience in the special account. Xu Hui said that in the current market, it is expected to improve the investor experience through asset allocation.
On the basis of investing in pure debt, Mövenpick CCB Kaiyuan has added investment in convertible bonds as a product similar to fixed income enhancement. In this regard, Xu Hui said: "On the one hand, from my personal experience, I have more experience in doing bonds and debt-related assets. On the other hand, although the elasticity of convertible bonds is mainly higher than the fluctuation of the market, it also has its own characteristics. There is also a lot to be tapped in terms of controlling drawdowns by using its own characteristics. Therefore, how to control its cost performance and increase its income on the basis of controlling the drawdown, I think this is a more flexible feature of the convertible part in addition to asset allocation. ”
In the selection of the target of the convertible bond, in addition to looking at the valuation of the whole bill, the more important point is to look at the valuation level of the convertible bond itself. Xu Hui said: "In terms of debt conversion, we first make a cost-effective choice, and on this basis, we will grasp the opportunity to enhance it. ”
In addition to the low-price strategy, there are also corresponding strategies for the industry. Xu Hui said that from the perspective of the industry, one of the more concerned this year is the growth sector, including TMT, innovative drugs, and military industry. In addition, it is a globally competitive export-type company, including machinery and auto parts.
Establish the concept of risk management for all employees
CCB New Century Mövenpick is a first-tier bond base, with a minimum holding period of 3 months, and the investment scope is mainly financial instruments with good liquidity, including bonds issued and listed in accordance with the law in China (including treasury bonds, local bonds, supporting agency bonds, convertible bonds (including convertible bonds for separate transactions), etc.), asset-backed bonds, bond repurchases, interbank certificates of deposit, bank deposits, money market instruments, treasury bonds, credit derivatives and other financial instruments permitted by laws and regulations or the China Securities Regulatory Commission. However, it must comply with the relevant regulations of the China Securities Regulatory Commission.
The aggregate proportion of the ** investment in convertible bonds (including convertible bonds for separate transactions) and exchangeable bonds shall not exceed 20% of the net asset value of **. Investment credit bonds (including asset-backed**) should have a credit rating of AA+ or above. Among them, the total proportion of investment in AA+ rated bonds shall not exceed 50% of the credit bond assets, and the total proportion of investment in AAA rated bonds shall not be less than 50% of the credit bond assets
Xu Hui said: "On the whole, the credit risk of our bond part can be controlled at a relatively low level through contract. Because the overall upper limit of convertible bonds** does not exceed 20%, relatively speaking, in terms of asset volatility, the correlation between convertible bonds and equity assets is stronger, and the volatility is relatively greater. We limit the ** of this convertible bond to 20%, in fact, it also highlights the management requirements corresponding to the risk characteristics of first-class bond-based products. ”
As the manager of CCB New Century Mövenpick, CCB** was established in September 2005 and is one of the first batch of ** management companies initiated and established by commercial banks in China. As of June 2023, CCB**'s total AUM reached 134 trillion, according to CCB**, on the basis of the company's research and credit evaluation team support, CCB ** has established a research framework system for the division of labor and cooperation on the investment side, involving a variety of asset allocation frameworks, "equity investment six forces evaluation model", "fixed income investment five forces evaluation model" and other continuous dynamic upgrading of practical strategy models, and combined with long-term external factors, short-term capital factors, market valuation factors to achieve asset allocation effect.
In terms of risk management, CCB has established a risk management concept for all employees, established a sound risk management system, and has embedded the concept of risk internal control into the before, during and after stages of investment and trading, effectively preventing various risk events including credit, market, liquidity, and operational risks, and maintaining a good risk control record.