It's also financial management, why do these products outperform the market?

2024-06-16

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According to data from Puyi Standard, as of July 14th, the average annualized return rate of financial products for the year was 3.3%. Specifically, the performance of fixed-income financial products remained relatively prominent, with an average annualized return of 3.54% for the year. Among them, pure fixed-income products were at 3.69%, and "fixed-income +" products were at 3.41%; meanwhile, mixed-type financial products were at 1.88%, and equity-type products were at -4.67%.

At the same time, relevant data shows that as of July 7th, the average return rate of long-term pure bond funds for the year has also reached 2.33%. Compared with pure fixed-income products of bank financial management, it has also underperformed by 145 basis points.

1. What are the reasons why fixed-income financial products have significantly outperformed mixed and equity-type financial products this year?

The main reason for the superior returns of fixed-income financial products compared to mixed and equity-type products is the divergence in the trends of the bond and stock markets. This year, due to the slow economic recovery, reduced market risk appetite, coupled with the maintenance of a loose monetary policy, slow issuance of special bonds, declining credit, and other multiple factors, bond yields have fallen, and the bond market has significantly strengthened. The equity market, on the other hand, has been impacted by factors such as the economic recovery not meeting expectations and new delisting rules, leading to a pessimistic investor sentiment, a general decline in small and mid-cap stocks, and an overall weak market performance. Therefore, fixed-income financial products, which mainly invest in bond market assets, have performed better overall than equity-type and some mixed-type products that mainly invest in stock market assets.

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2. Why does bank financial management have a greater overall performance advantage in fixed-income investment compared to public funds?

3. Will the situation where fixed-income financial products outperform equity-type financial products continue in the second half of the year?

4. Looking forward to the second half of the year's market, how should investors position their financial products?2. Compared to public mutual funds, why do bank wealth management products have a greater overall performance advantage in fixed-income investments?

In contrast to public mutual funds, the investment scope of bank wealth management products is broader. Looking at the investment directions in recent quarters, fixed-income wealth management products are primarily invested in deposit instruments, as well as entrusted investments through channels such as trusts, insurance, and funds. Additionally, some products are invested in QDII-type fixed-income assets. The comprehensive holding returns of these investments are higher than those of standard bonds. At the same time, wealth management products also enhance product returns through asset and credit下沉 strategies. On the other hand, the investment scope of public mutual funds is subject to more restrictions, mainly focusing on assets with strong liquidity and high levels of public information. The more diversified investment strategies of bank wealth management products not only help to diversify risks but also have the potential to increase the product's return levels.

3. In the second half of the year, will the situation where fixed-income wealth management products outperform equity-containing wealth management products continue?

In terms of the bond market, considering the current economic recovery, the possibility of a systemic reversal in the second half of the year is relatively low. However, bond yields are currently at a relatively low level, and there is limited room for further decline, with the market likely to be characterized by fluctuations in the short term. Regarding the stock market, the overall valuation of A-shares is at a historically low level, with limited downside potential, and whether it can stabilize and move upwards mainly depends on the maintenance attitude of policies and the recovery of the economy. In summary, whether the return rate of fixed-income wealth management products will continue to be superior to that of equity wealth management products mainly depends on the progress of economic recovery. If there are positive changes in the fundamentals and the risk preferences of funds outside the market in the second half of the year, the return rate of equity wealth management products is expected to improve.

4. Looking forward to the second half of the market, how should investors allocate wealth management products?

Cash management and fixed-income products have relatively low risks and can provide investors with relatively stable returns, making them a good choice in the current market environment, especially suitable for investors with lower risk preferences. For investors with a certain risk preference, it is recommended to consider diversified allocation, closely monitor changes in market fundamentals, policies, and sentiment, and moderately allocate mixed and equity wealth management products.

Wealth management carries risks, and investment should be approached with caution.