Financial Management Weekly: Harvest Ultra-Short-Term Debt Fund is one of the earliest short-term debt funds established in China. Now, among the eight short- and medium-term debt funds in the industry, only one, Harvest Ultra-Short Bond, is left. What is the reason why Harvest is so insistent on ultra-short-term bond funds?

Wu Hongjian: Ultra-short-term bond funds are very common in the international market and are a popular currency-enhanced investment tool. They are suitable for holding short-term funds for a longer period of time and for those with higher abilities. income. This kind of segmented product also has great market and potential demand in China.

For example: Since the stock market continues to adjust, investors have generally held their spare funds for a long time. This is reflected in the fixed deposits of savings, idle funds for new shares, stock trading volume and turnover rate. The decline can be seen, and the benchmark deposit interest rate has been lowered twice in a row since October. A considerable part of these funds not only hope to obtain more than one year of fixed deposit income, but also want to retain the flexibility to realize cash at any time. Ultra-short-term debt funds are precisely positioned to meet such needs. The customer base of ultra-short-term bond funds is also very wide. In addition to individual investors, it also includes institutional customers, such as securities companies or financial companies. Whether it is financial products or self-operated investment portfolios, many of them invest in ultra-short-term bond funds.

Most of the assets of the ultra-short-term bond fund are invested in money market instruments, and a small number of fixed-income investment instruments with slightly longer maturities and higher yields are invested according to market changes, and investment leverage is appropriately used to strive to strengthen income. Therefore, ultra-short-term debt funds have the characteristics of relatively stable principal, high liquidity, and free subscription and redemption. The redemption time is as fast as that of monetary funds, and at the same time, they can compete for more than one year of fixed deposit after-tax income.

In fact, as of November 7, Harvest’s ultra-short-term bonds have a total return of 3.99% this year, a total return of 4.78% in the past year, and an annualized return of 4.16% in the past two years. The total return since inception on April 26, 2006 was 9.47%, exceeding the product’s performance comparison benchmark, the after-tax interest rate on a one-year time deposit. Comparative chart showing changes in the growth rate of the cumulative net value of fund shares since the fund contract came into effect and changes in benchmark returns compared with performance over the same period.