no riskinterest rateDownward superimposed equity market fluctuation adjustment, inter-bank certificate of depositfundIt has continued to be favored by the market this year.recently accepted ChinasecuritiesIn an interview with a newspaper reporter,Bosera FundWei Zhen, general manager and investment director of the Second Department of Fixed Income Investment, pointed out that the interbank certificate of deposit fund is the latest low-riskfinancial managementThe main purpose of the tool is to provide retail customers with low-volatility investment options, and it is also an important part of achieving financial inclusion.
In Wei Zhen’s view, fixed income investment earns more moneycurrencyFor money with cyclical trends, in bond investment, she will match the corresponding asset duration strategy on the basis of analyzing and judging the duration of liabilities. Long-term returns are mainly coupons, while short-term returns will flexibly use leverage and riding strategies .It is understood that the 30-day holding period of the Bosera Yueyue Le interbank deposit certificate to be managed by Wei ZhenHybridsecuritiesThe investment fund (hereinafter referred to as the “Bosera Yueyue Interbank Deposit Certificate Fund”) will be publicly issued on May 23. In the loose money and credit cycle, she said that she will continue to optimize the asset structure, and use duration and leverage strategies to strive to create stable and sustainable returns for holders.
Wei Zhen, graduated with a master’s degree, has been in business in Xiamen since 2004bankHe is the head of the bond trading group. He joined Bosera Fund in 2008 and has served as a bond trader, fixed income researcher, fund manager, deputy investment director of the cash management group of the fixed income headquarters, and head of the cash management group of the fixed income headquarters; he is currently the second fixed income investment of Bosera Fund. The general manager of the department and the investment director of the second fixed income investment department, the total size of the funds under management exceeds 330 billion yuan.
Achieving a balance of scale and revenue
ChinasecuritiesReport:Before entering the Bosera Fund, you had a period ofbankwork experience related to bond trading, andbankThe inter-market is also an important market for bond investment. How have these experiences affected your research horizons?
Wei Zhen:Up to now, I have worked in Bosera Fund for more than 10 years, but my previous work experience in bank bonds still has an indelible impact on me. There are mainly two aspects:
First, I have formed a diversified professional knowledge structure. The operation mode of the bond market, especially the inter-bank market, is generally that liabilities determine assets and assets stabilize liabilities. This logic can make investment more grounded. Through working in a bank, I gradually formed this kind of thinking mode, and it has always influenced my later investment and research work.
The second is to improve the flexibility of transaction collaboration. The most successful communication in the world is the word “understanding”. Under normal circumstances, CBM’s investment objectives for the fund often have relatively strict constraints, such as the pursuit of low drawdowns and significant excess returns. To achieve this goal, the joint efforts of investment, research, channels and other aspects are required. I have worked in a bank and can understand the difficulty of communication, and I will try my best to integrate this integration idea into fund product design and investment operation. Investment is not a castle in the air, demand determines the market. Whether it is in the past or in the future, I will insist on making down-to-earth investments.
China Securities Journal:Based on the above experience, please systematically describe your fixed income investment philosophy.
Wei Zhen:On the whole, based on the value principle of “price fluctuates around value”, I will study the changing laws of various indicators in the market in long, medium and short cycles, grasp the main contradictions of the market at different stages, and choose based on capital attributes. The most cost-effective investment strategy and matching assets to achieve a balance between investment scale and income.
From past experience, fixed income investments make money from the trend of wide currency cycles. Specifically, in bond investment, I will match the corresponding asset duration strategy on the basis of analyzing and judging the duration of liabilities. Long-term returns are mainly coupons, while short-term returns will flexibly use leverage and riding. Strategy. In fund portfolio management, I tend to use forward-looking predictions to capture right-side trading opportunities.For example, in a loose currency and loose credit cycle, high leverage and high coupons can be used to obtain excellentperformanceReturns; in the period of tight money and tight credit, we strive to obtain excellent excess returns through the term matching strategy.
In my more than ten years of investment and research career, some node events have made me realize the following points: liquidity is the soil foundation of all transactions, which is invaluable to a certain extent; the market exists forever There is no permanent allocation, and there should be no over-reliance on high coupons; for successful investment, both scale and performance are indispensable. Scale without performance is an invalid investment, and performance without scale , it is an investment without a soul.
China Securities Journal:In addition to managing fund products, you also act as the manager of the fixed income team of Bosera Fund. Please talk about the current concept of investment research team management.
Wei Zhen:Under the investment and research atmosphere of Bosera Fund, I will create a professional and free investment and research culture for the team. And efficient team investment must be based on strict investment discipline. Therefore, I will also make efforts in the assessment mechanism, so that the able ones will be superior to the mediocre, and the atmosphere of survival of the fittest will be formed. At the same time, under the diversified talent echelon, ordinary people can become outstanding, and outstanding people can become more outstanding.
Active products are more flexible
China Securities Journal:Since the new regulations on asset management, public offerings have continued to deploy “bank wealth management alternative” products. Judging from the situation since 2022, the interbank certificate of deposit fund is the focus of major public offerings. What is your opinion on this?
Wei Zhen:Interbank certificates of deposit are transferable book-entry time deposit certificates issued by banking depository financial institutions in the national interbank market with a term of less than one year. A certificate of deposit.But unlike deposits, interbank certificates of deposit canpledgeand transfer, with the characteristics of strong liquidity. Since the beginning of this year, there are two background factors in the public offering of interbank depository funds.
First, with the domestic risk-freeinterest rateThe central bank continues to decline, and the yield of the cash-based wealth management market has also continued to decline in the past two years. The “baby class” familiar to the majority of Christianscargo baseThe annualized rate of return of the product is currently around 2%. Moreover, after wealth management broke the transformation from just to full net worth, there has been a lack of currency-enhanced products with relatively high returns, low volatility and low drawdowns in the market. In this context, interbank certificate of deposit funds emerged as the latest low-risk financial management tool. The purpose of such funds is to provide retail customers with low-volatility investment options, and is also an important part of achieving financial inclusion.
Secondly, after the explosive growth in the past ten years, the size of the money fund market has now exceeded 10 trillion yuan.At present, the market urgently needs a class of products to undertakeMonetary Fundspillover. Up to now, the inter-bank certificate of deposit has a stock scale of up to 14.4 trillion yuan, and the inter-bank certificate of deposit fund has the characteristics of relatively high income, low volatility and good liquidity, and has become an important variety to undertake monetary fund spillovers.
China Securities Journal:Different from other institutions’ 7-day holding interbank CD funds, Bosera Yueyue Interbank CD Fund has a longer holding period of 30 days, and is an actively managed interbank CD fund. What do these differences mean?
Wei Zhen:As an actively managed interbank certificate of deposit fund, Yueyuele Interbank Certificate of Deposit Fund has higher investment flexibility. I will take advantage of the flexibility in investment to improve portfolio returns and reduce portfolio volatility: First, bond investment duration has relatively more room for manipulation, and actively managed certificates of deposit funds can flexibly adjust portfolio duration risk when faced with market fluctuations The degree of exposure; second, the choice of fund portfolio assets is larger. It is not difficult to understand that CD index funds are mainly based on tracking indexes, and the portfolio is constructed according to the principle of sampling and replication, and less consideration is given to the cost performance of assets, while actively managed CD funds tend to prefer more cost-effective assets for allocation.
In addition, the holding period is 30 days, which is beneficial for fund managers to reduce the impact of market volatility and net redemption disturbance during this period, and obtain higher coupon returns. For investors in fixed income products, the target of excess return requires holding for a longer period. Judging from our analysis, the winning rate of the 30-day holding period is higher than that of the 7-day holding period, so you can have a better investment experience.
Interest rate trend “tops and bottoms”
China Securities Journal:In terms of investment, what are the factors that affect the returns of interbank certificates of deposit funds? What scale and leverage are required to achieve optimal investment returns.
Wei Zhen:The yield of interbank certificates of deposit is mainly affected by monetary policy expectations, central changes in capital interest rates and the relationship between supply and demand in the market. The liquidity of the interbank certificate of deposit is very good, and the transaction efficiency is very high. In theory, the scale of the certificate of deposit product has no upper limit. You can refer to the development of the cargo base. Fund size is an investment outcome, not a constraint on investment yield. At present, the issuance of certificates of deposit funds has stipulated a scale cap of 10 billion yuan, and we will also follow this scale constraint.
In addition, after regular operation, interbank CD funds generally maintain a central leverage ratio of about 20%, and the specific daily level should be dynamically adjusted according to the relative position of the capital interest rate center and the CD interest rate, as well as our judgment on market expectations.
China Securities Journal:What thickening strategies will be adopted in the next investment in interbank certificates of deposit funds?
Wei Zhen:In short, the thickening strategy can be summarized into three parts: one is the elasticity of duration. Through the adjustment of “smart duration” in market fluctuations, higher returns can be obtained for the portfolio; the second is the linkage of assets and liabilities. As mentioned above, bond investment has the characteristics of “liabilities determine assets, assets stabilize liabilities”. Therefore, the thickening strategy needs to grasp the marginal changes on the liability side in a forward-looking manner, and flexibly adjust the asset side; the third is the optimization of the asset structure. In investment, a more cost-effective term structure will be preferred for layout.
In terms of specific strategies, I will use duration and leverage strategies in the management of interbank certificates of deposit funds. From a credit point of view, I think that the thickening effect of the duration within 1 year is moderate, and it is the best choice for CDF investment. Among them, the inter-bank certificates of deposit of joint-stock commercial banks and state-owned commercial banks account for more than 60% of the entire inter-bank certificate of deposit market due to their huge volume, with good liquidity, and will be the key targets for the allocation of inter-bank certificates of deposit funds.
China Securities Journal:Will the follow-up bond market be beneficial to the investment of interbank certificates of deposit funds? What is the prediction in this regard?
Wei Zhen:The main judgments are as follows: First, changes in the external geopolitical relationship will affect inflation expectations. As of now, the biggest disturbance to the market sentiment from peripheral geopolitical relations is slowly fading away, but we still need to maintain dynamic observation in the future; the second is that the Fed raises interest rates and shrinks its balance sheet.existQualcommIn the face of inflation, the Fed will continue to tighten liquidity. But fortunately, domestic monetary policy insists on focusing on me and stability; the third is the implementation of the stable growth policy. Under the promotion of domestic steady growth policies, there is still room for follow-up policies.
As far as the trend of interest rates is concerned, from the above factors, I maintain the pre-judgment of “not happy but not sad”, and future investments will continue to follow the concept of uniform allocation and flexible trading.
(Article source: China Securities Journal)
(Original title: Wei Zhen of Bosera Fund: Optimizing Asset Structure to Create Steady and Sustainable Income)
(Editor in charge: 436)