Pure debt fund refers to fixed-income financial instruments, that is, bonds such as government bonds, financial bonds and corporate bonds (including convertible bonds), and cannot invest in stocks. However, at present, many pure debt funds state in the fund contract that the foundation will purchase new shares at the right time, such as ICBC Strong Debt, Harvest Bond, Baokang Bond and so on.
Compared with the two, pure debt funds have a wider range of investment targets, and the corresponding risks and benefits are also greater than those of short-and medium-term debt funds.
At present, ICBC has Thai letter short-term debt.
Since the rapid rise of domestic stock market in 2006, under the background of big bull market, the development of short-term and medium-term debt funds has faced bottlenecks and suffered large-scale redemption. As of June 30, 2007, the total net assets of seven short-term and medium-term debt funds (Billion Monthly Income, Taixin Short-term Debt, Jiashi Short-term Debt, AIA Short-term Debt, Bosera Stable Value, Nuoan Short-term Debt Fund and Southern Dolly Short-term Debt Fund) were only 2.9 billion yuan. At present, Bosera Stable Value, Nuoan Short-term Debt Fund and Southern Dolly Short-term Debt Fund have completed the transformation, and their names are respectively Bosera Stable Value, Nuoan Optimized Income Bond Fund and Southern Dolly Enhanced Bond Fund. The investment strategies have all increased the subscription of new shares and convertible bond investment.