Guangfa daily red coin a is not bad. One: What if the debt base earns 44% a year? Partial stock funds with a return rate of over 40% performed well in this year's A-share market. At present, the income of convertible bond funds has killed a large number of partial stock funds. The income of the best convertible bond fund during the year has reached 44% so far. With the emergence of high returns, the humble convertible bond fund is becoming a network celebrity of the fund. How did Guangdong Development Fund Wu Ji, which manages the best convertible bond fund, create this income? The broken-down receipts that others despise should also include Wu Di, a fund manager who graduated from Tsinghua University and London School of Economics and Political Science. The income of the Guangfa Convertible Bond Fund he manages this year is as high as 44%. This income has broken the stereotype of ordinary investors on the low income of bond fund products. "I am a professional exam comparison exam, and I usually have more than a dozen at school." Wu Di said modestly that after he got a master's degree from the London School of Economics and Political Science, he entered the financial industry. He found himself plain, suitable for investment and research in the secondary market, and liked to think, thinking more than talking. Compared with the work of fund managers and researchers, he has to say a lot, do a lot and take the initiative in investment banking. The investment research of convertible bonds is very suitable for Wu's personality and thinking mode. It is worth mentioning that the convertible bond market has been a minority variety in the capital market for a long time. Since 20 17, the scale of the convertible bond market has been expanding, and the number of surviving bonds has increased from 57 in 20 17 to 20210. The balance of convertible bonds also increased from 1 198 billion to 647 10 billion. The expanded convertible bond market covers a wider range of industries, including many hot industries, which provides conditions for convertible bond fund managers to choose bonds to explore structural opportunities in the market. Because of the close relationship between convertible bonds and stocks, the understanding of convertible bonds requires fund managers to have strong research ability on stocks. Wu Di, the fund manager of Guangfa Convertible Bonds, took stock research as his main job at the researcher stage. He is being interviewed by Securities Times and China, a brokerage firm. "Partial stock funds are particularly large funds, and it is difficult to study the coverage of those dismissive small tickets, but we must do it seriously." Wu Di bluntly said that there are three convertible bond researchers supporting his work, which enables him to explore investment opportunities more deeply, but he also admitted that he hopes to buy things with as little loss as possible and a predictable rate of return on the whole. Convertible bond funds can get such high returns from stocks, which is obviously inseparable from Wu's special layout strategy. Wu Di explained that the income from convertible bonds this year is in the debt selection strategy. When the assets of Guangfa Convertible Bond Fund are small, Wu Di mainly uses bottom-up mining to subdivide the industry leaders, especially the convertible bonds of small and medium-sized companies. Wu Ji summed up this set of gameplay as "accelerating the growth of small and medium-sized enterprises", that is, those targets with acceptable growth performance in the past and room for improvement in the future. For example, in the first quarter of this year, he invested heavily in a convertible bond of a high-end men's wear brand. This convertible bond was noticed by the enemy of Wu when it was issued and listed. In this regard, Wu Qiu also did some basic research on this company. Wu Enemy believes that one factor of this convertible bond is that some high-income men who care about clothes have few choices when buying clothes, especially in recent years, men's high-end clothes are less. In the long run, men's clothes should be a better business than women's clothes, because men's loyalty to brands is significantly higher. On the track, this listed company occupies a good track, which means that its convertible bonds have certain opportunities. Later, Wu Di and the stock researcher of Guangfa Fund found that after the company's performance exceeded expectations in the second and third quarters of 2020, the stock price fell. At this time, they began to gradually build positions on convertible bonds. In the first quarter of this year, Guangfa Fund tracked the order meeting of the company's dealers, and the dealers were more active in getting the goods. At that time, the investment logic was to buy a company that was damaged and repaired by the epidemic. This company recovered quickly in the clothing sector and the growth rate was ok. It is estimated that the growth rate will increase from about 20% in the past to 30%. Based on these factors, this clothing company has become a heavy convertible bond variety held by Guangfa Convertible Bond Fund in the first quarter of this year. In the second and third quarters of this year, this convertible bond ushered in a relatively large increase. After reaching a certain valuation, Guangfa Convertible Bond Fund will cash it out. "For this kind of convertible bonds with strong stocks, we regard it as a stock, study its fundamentals, and look at the valuation of the stocks behind the convertible bonds." Wu enemy explained. The high-yield status of Guangfa Convertible Bond Fund ushered in the subscription of funds. After the scale of the fund became larger, Wu Ji also made some flexible changes to the original bond selection strategy, mainly from the bottom up to tap the convertible bonds of small and medium-sized companies with growth potential, and appropriately increase the convertible bonds of top-down and hot industries. For example, in the new energy industry, according to the fund's regular report, as of the end of the third quarter of this year, Guangfa Convertible Bond Fund managed by Wu Di held a large number of En Jie convertible bonds. The stock company behind this convertible bond is En Jie, a bull stock in the field of A-share new energy materials. This stock market is worth 220 billion yuan. Debt-to-equity swap in the military industry is also a new goal for Wu's enemies to lay out popular tracks from top to bottom because of their larger management scale. At the same time, some convertible bonds in the military industry are also in line with Wu's original bottom-up strategy. "The sustainability of the military industry in the next few years is not bad. It is a long-term growth industry and we also have a lot of research support. " Wu Di said that through the investigation of the military industrial chain, it was found that centralized procurement and price reduction had limited performance for related companies. In addition, the military industry is also facing the problem of centralized procurement and price reduction this year. China Wu, a broker of Securities Times, believes that it is precisely because of various concerns that the investment in convertible bonds needs more industry and stock research. Considering the potential pressure of price reduction, the team found that it is more important to buy upstream component companies, because the customers of upstream companies are scattered. If the whole system reduces the price, whoever decreases less and who decreases more still depends on the bargaining power. The advantage of electronics is that customers are scattered, and customers are scattered in various institutions. Judging from the number of employees of listed companies, the upstream electronics companies have a sales team of several hundred people, with few competitors, but the downstream customer companies are many and scattered. It is worth mentioning that the growth of the fund scale has also enabled Wu Qiu to launch some new ways of playing. In his view, the bigger the convertible bond fund, the more it needs to make money by stocks. "Choosing a coupon from the bottom up is not enough to support the growth of the fund scale. Fortunately, I introduced a new style of play. " Wu Di told the Securities Times reporter that Wu Di said frankly that he combined bottom-up securities selection with top-down industry selection. At present, you can still find targets with relatively high investment value in convertible bonds, such as convertible bonds in the electric vehicle industry chain. You can choose convertible bonds in key links without buying some low-value varieties to make up the position.