The capital market is naturally volatile, and excellent absolute return funds often win positive returns every year. So how do we novices know how this kind of products are made? Bian Xiao arranged here to obtain the investment strategy of "absolute return" for your reference. I hope everyone will gain something in the reading process!

Absolute income funds mainly adopt asset allocation, fixed income plus, quantitative hedging and other strategies. Here is a brief introduction to the commonly used "fixed income plus" strategy, large-scale asset allocation strategy, quantitative hedging strategy and fixed proportion portfolio insurance strategy (CPPI).

Fixed income+strategy

As the name implies, the "fixed income+"strategy is divided into two layers: "fixed income" and "+". Fixed income assets are mainly bonds, and "+"includes stocks, convertible bonds and other assets with strong flexibility.

The "fixed income plus" strategy focuses on fixed income assets. On the basis of striving for the basic income, seek the reasonable income of various strategies (that is, the "+"part), and strive to improve the overall income of fixed income+strategy on the premise of stable income. The common products of "fixed income plus" strategy include primary debt base, secondary debt base and partial debt mixed fund.

The "fixed income plus" strategy can enhance the investment experience through the balance of stock and debt. It can effectively reduce the volatility of assets, and at the same time have the opportunity to obtain higher returns than bonds in the long run.

Through this asset allocation, we can better integrate the advantages and disadvantages between stocks and bonds. On the one hand, bonds can be used to smooth the net withdrawal and build a safe buffer for assets; On the other hand, use the stock part to strengthen and seek higher yield.

That's specific to "+". What has "fixed income+"increased?

The first is "+stock", which is a fund with "fixed income and stock". Backed by bonds, stocks strengthen, striving to achieve the effect that the shock market can be defended and the bull market can be attacked.

The second type is "+convertible bonds". Funds with the strategy of "fixed income+convertible bonds" can not only obtain the basic income of bonds, but also increase flexible income, and strive to be both offensive and defensive according to market conditions.

The third type is "innovative", and the income after the new shares are won is highly certain. Therefore, in Public Offering of Fund, there are many funds that adopt this "fixed income+innovation" strategy, and most of them are mixed funds with partial debts.

The "fixed income plus" strategy has the following characteristics:

1, bonds contribute basic income, and multi-strategy rotation is enhanced. Contribute the basic income through bonds, reaching the basic income of 3%-5% per year, and provide a safety mat for portfolio enhancement operation. This part of the bonds do not do band operation and do not bear credit risk. They mainly allocate interest rate bonds and high-quality credit bonds to obtain stable basic income. At the same time, multi-strategy wheel motion enhancement is carried out. Among a variety of optional assets, such as stocks, convertible bonds, treasury bonds futures, stock index futures, only one asset with the strongest certainty is selected for rotation operation to improve the overall income of the portfolio.

2. The income target is down-to-earth, and the risk is not blindly enlarged to pursue excessive income target. In the short term, it is a realistic goal to benchmark the yield of wealth management products in the same period within the one-year assessment dimension. At the same time, by strengthening the operation over time, the purpose of collecting streams into rivers and seas is achieved. In the long run, the medium-and long-term income target of more than 6% can be achieved with a high probability.

3. Strictly control retracement and strive for absolute returns. Everyone can make a fixed income, and the difference is not big. The key is this "+". What kind of risks you choose to take, what kind of benefits you will increase. Choose the most certain strategy, not the one with the highest expected return.

Large-scale asset allocation strategy

Large-scale asset allocation strategies will simultaneously track and study stocks (value stocks, growth stocks, cyclical stocks, etc.). ), bonds (high-grade credit bonds, interest rate bonds, convertible bonds, etc. ), innovation, fixed increase and other fields. Under certain circumstances, they will not easily miss any investment opportunities, and they are highly flexible and can cope with different market environments.

It needs the combination of top-down and bottom-up, the system is complex, and it needs teamwork. First, from the macro-economic and policy trends, choose assets with high cost performance, and make good allocation plans and positions; Then, from the bottom up, choose high-quality bonds, stocks, etc. Used for allocation to form a dynamically adjusted combination.

Asset allocation strategy-based absolute income fund mainly realizes absolute income through the allocation of large-scale assets such as stocks, bonds and cash, as well as the research on the industry and the selection of individual stocks. There are subtle differences in the actual operation strategies of different funds, which are mainly reflected in the specific strategy selection at three levels: asset allocation, industry allocation and individual stock bond selection.

In the medium and long term, the overall effect of the absolute return fund of asset allocation strategy is relatively limited, which is relatively influenced by the market environment, and the investment and research strength of fund companies and fund managers is quite high. The performance gap between different funds mainly depends on the ability of fund managers.

Quantitative hedging strategy

The so-called quantitative hedging can be understood from the perspectives of quantification and hedging.

"Quantification" refers to the use of statistical methods and mathematical models to guide investment, which is different from the traditional "qualitative" investment. Quantitative investment mostly uses computers to find all kinds of "high probability" strategies that can bring excess returns from massive historical data, and strictly follows the quantitative model constructed by these strategies to guide investment. The biggest feature of quantitative investment is to emphasize discipline and strive to overcome the influence of investors' subjective emotions.

"Hedging" refers to managing and reducing the risk of the portfolio system in order to cope with the changes in the financial market and strive for relatively stable returns. Quantitative hedging is essentially a combination of risk management.

Generally, the quantitative hedging strategy is to build a stock portfolio through quantitative investment, and then hedge the market risk through stock index futures, so as to obtain stable excess returns, and can improve the portfolio returns through futures margin investment, stock innovation and stock index futures arbitrage.

Quantitative hedging strategy is a long-term stable low-risk strategy type, whose performance has nothing to do with the stock market and bond market, and it is a very good choice for investors who prefer stable income.

Quantitative hedge funds have the characteristics of small net value fluctuation and controllable exit, essentially because the income of hedge products mainly comes from excess income. For many fund managers, especially quantitative fund managers, the absolute return of stock selection will fluctuate under the influence of market conditions, but the excess return can be relatively stable, which makes the net value stability of hedging products very high.

CPPI strategy

For example, the fixed proportion portfolio insurance strategy (CPPI) selects parameters according to investors' income expectations and risk tolerance, and dynamically adjusts the portfolio ratio of risky assets and low-risk assets to ensure the principal security. That is, after the initial proportion of asset allocation is fixed every time, it will be adjusted to the initial proportion state regularly every time it runs for a period of time, such as half a year or a year.

The fixed proportion method emphasizes the role of rebalancing. If the fund manager sets a constant stock-debt ratio, then when the stock assets rise by more than 20%, the fund manager will sell stocks and buy bonds, and readjust the ratio. The adjustment methods include threshold adjustment and periodic adjustment.

In addition, since Public Offering of Fund can leverage, it is necessary to know whether the proportion of risky assets is aimed at net assets or total assets, which will lead to different risk-return levels.

Although absolute return funds strive for positive returns, the capital market is naturally volatile, so absolute return cannot promise that investment will not lose money in any short period, it is just an investment concept.

For absolute return strategy funds, investors are advised to first examine the historical performance of the relevant strategies they have chosen, and then further evaluate the fund manager's ability to choose funds on the basis of comparing the past performance of different strategies.

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