Fixed income + financial management, it's so awesome!
2024-06-10
65 CommentsAccording to data from Puyi Standard Statistics, the number of "fixed income +" financial product issuances has been relatively stable this year, with an average monthly issuance of around 1,400 products. How to innovate "fixed income +" products to meet investors' diversified allocation needs that combine risk dispersion with returns is increasingly valued by wealth management institutions.
1. What is the current status of the scale and performance of "fixed income +" financial products? Looking at the investment strategy, what are the tendencies of the auxiliary assets in "fixed income +"?
As of July 15th, the "fixed income +" financial products have an annualized return rate of 2.5248% for the past month and 3.4724% for the past six months, with a scale of 16.0387 trillion yuan. The scale has shown a gradual upward trend since the beginning of this year.
In terms of asset allocation, the auxiliary assets mainly allocated in "fixed income +" products are equity, asset management products, financial derivatives, etc. In the first half of this year, as gold prices continued to rise, many institutions have successively launched financial products linked to gold or allocating gold assets. In addition, a small number of products will also allocate preferred stocks and convertible bonds.
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2. Recently, "fixed income + convertible bonds" products have attracted attention. What is the current status of wealth management institutions' layout in "+ convertible bonds" financial products? What are the key directions worth paying attention to?Investing in convertible bonds through wealth management financial products is not a new phenomenon; as far as we know, such products have existed since as early as 2021. According to data on holdings, nearly a hundred products from about 30 institutions have invested in or currently hold convertible bonds, including major institutions such as China Merchants Bank, Xingye Bank, CCB Trust, ABC, China Post, BOC, and Bank of Communications, almost all of which have invested in convertible bonds. However, the proportion of such products in the total market is very low. Given that convertible bonds are only a minor species in the bond market, they are also likely to serve only as the "plus" part of the "fixed income +" assets in bank wealth management and will not become mainstream.
3. What are the recent changes in investors' demand for "fixed income +" product allocation? What are the reasons? What are the characteristics of popular products in terms of product design and allocation strategy?
This year, the market environment has been complex and changeable. On one hand, the equity market has experienced several fluctuations and corrections, with investors' overall risk appetite being relatively low and funds tending towards assets with stronger certainty. On the other hand, the bond market continues to face a "scarcity of assets" and "scarcity of returns," making it difficult to find high-quality long-term assets, and pure fixed income products can no longer meet the return needs of some investors. Against this backdrop, the high dividend strategy, which offers stable cash flow and considerable long-term returns, and the convertible bond strategy, which is defensive in bear markets and offensive in bull markets, have attracted widespread attention from the market. Wealth management companies have accordingly strengthened the launch of related "fixed income +" products, aiming to optimize investors' holding experience and enhance product returns while controlling volatility and drawdowns.
Wealth management involves risks, and investment should be approached with caution.