Wealth Management Weekly: We found that many investors do not know much about ultra-short-term bond funds. What is the difference between ordinary bond funds and ultra-short-term bond funds?

Wu Hongjian: The risk return of ultra-short-term bond funds is lower than that of ordinary bond funds. Their investment horizons also vary widely. Ultra-short-term bond funds cannot invest in stocks, do not subscribe for new shares, and do not invest in convertible bonds, so they can avoid stock market risks.

Ultra-short-term bond funds mainly invest in money market instruments, and the investment risk in the bond market is significantly lower than that of ordinary bond funds.

For example: Duration is an indicator of interest rate risk sensitivity. The longer the duration, the greater the interest rate risk. The portfolio duration of ultra-short-term bonds is generally limited to 0.5 to 1 year, while the performance comparison benchmark of ordinary bond funds, the bond index duration, is often around 6 years.

So the interest rate risk of ultra-short-term bond funds is generally significantly smaller than that of ordinary bond funds, and the returns are more stable. From an empirical perspective, the average volatility of ordinary bond funds reaches 4.44%, while the volatility of Harvest ultra-short bonds in the past two years is only 0.76%.

Financial Management Weekly: What measures have been adopted in the past two years or so to ensure that ultra-short-term bonds maintain this distinctive feature?

Wu Hongjian: We mainly strictly control risks through standardized operations, and strive for higher and stable returns through active investment in macro, capital and precision, such as: strictly observing duration and avoiding high-risk securities. , actively operate, make relative value choices, etc.

Taking the third quarter of this year as an example, Harvest Ultra-Short-Term Bond Fund seized the upward market opportunity, promptly adjusted its investment strategy, made full use of leverage resources, and relatively quickly increased the portfolio duration. Flexibly adjust the investment ratio of credit bonds according to changes, and continuously optimize the types of bonds held.

Through the above operations, Harvest's ultra-short-term bonds, on the basis of controlling liquidity risks, while providing the convenience of free entry and exit at any time, contributed relatively stable returns to investors: the net value was achieved in the quarter The growth rate is 1.06%.

Financial Management Weekly: Some time ago, the bond market experienced a wave of good market conditions, and many bond funds achieved good returns, but at the same time they faced greater correction pressure.