In recent years, the volatility of bond and stock price is increasing while the risk preference of investors tend to be cautious. Some conservative investors have invested in low risk bond fund. Meanwhile, other steady investors hope to grasp moderate-long term investing opportunity through the combination of stock and bond, namely ‘fixed income+’.
Public information announces that GF Jixuan bond fund managed by Zhang Xue(A type: 017475; C type: 017476) is launched in BOC, GF fund, and other platform recently. The product is a secondary bond fund that the weight of stock, convertible bond, and exchangeable bond weigh less than or equal to 20%. Among the stock asset, stocks incorporated in Hong Kong Stock Connect weighs less than 50%.
The announcement indicates that the portfolio manager of GF Jixuan Zhang Xue has engaged in bond market for 15 years and public fund management for more than 8 years, going through several bull and bear cycles and accumulating abundant investing experience. Up to the end of May, Zhang Xue has achieved positive return for all the fixed income+ product under his management in the past 6 months. Specifically, GF Hengtong 6- month holding period mixed fund beginning on 14th April 2022 has accomplished 4.17% annual return while the comparable performance basis was 1.83%. Yinhe security demonstrates that the fund's performance in the previous year ranks among the top 10% of its peers.
Zhang Xue possesses globalized macro insight and excellent investing vision. She selected stocks and bonds and constructed portfolio based on top-down investment structure. Concerning debt basis, she explored credit bond and solidified bond yields through management of duration, credit spreads and other aspects. In terms of convertible bond investment, she would flexibly adjust her holdings according to the market environment and tend to excavate the undervalued convertible bond and hold them for long period. Considering stocks, she selected the expanding industries and prefer the safe stocks with low valuation.
While choosing funds, apart from the experience of portfolio management, fund performance, and investing style, the comprehensive power of fund management company is also a significant factor accounting for a fund’s performance. The manager of GF Jixuan fund is GF Fund. Established in August of 2003, GF fund was leading in management scale. GF Fund has been continuously improving its professional capability in investment of equity, fixed income, and overseas capital，which supports the thorough research on the management of combined product.
Public information illustrates that up till 31 March, 2023, GF fund 5A holistic appraisal from Tianxiang investment adviser, 5-star in. Specifically, in terms of fixed income, GF Fund was awarded with secondary bond fund honor by Ji‘anxin fund assessment center, and the relative return of relevant fixed income products ranked the second place among 15 large-scale fund companies.
Note 1: GF Hengtong 6-month Holding Period Hybrid Fund Class A was established on November 4, 2020, with a performance benchmark of 15% of the Shanghai and Shenzhen 300 Index return rate, 5% of the RMB-denominated Hang Seng Index return rate, and 80% of the CSI all bond index return rate. Past performance (based on performance benchmarks): 2021: 3.71% (3.02%); 2022: 0.72% (-0.86%), data from fund regular reports; previous fund managers (tenure dates): Tan Changjie (November 4, 2020, to April 14, 2022), Zhang Xue (April 14, 2022, to present). GF Hengtong 6-month Holding Period Hybrid Fund Class A is classified as a hybrid fund-partially debt-oriented fund-partially debt-oriented fund (Class A) by Galaxy Securities.
Note 2: GF Jiyuan is the only Level 2 bond fund currently managed by Zhang Xue. GF Jiyuan Bond Fund Class A was established on August 25, 2022, with a performance benchmark of 90% of the China Bond General Composite Total Return Index, 7% of the Shanghai and Shenzhen 300 Index return rate, and 3% of the RMB-denominated Hang Seng Index return rate. Previous fund managers (tenure dates): Zhang Xue (August 25, 2022, to present).
Note 3: GF Value Return Hybrid Fund Class A was established on November 29, 2017, with a performance benchmark of 20% of the Shanghai and Shenzhen 300 Index, 70% of the China Bond Comprehensive Wealth Total Return Index, and 10% of the after-tax bank current deposit interest rate. Past performance (based on performance benchmarks): 2018: 5.26% (2.02%); 2019: 4.73% (10.87%); 2020: 14.55% (7.60%); 2021: 0.72% (2.75%); 2022: -0.39% (-2.21%), data from fund regular reports; previous fund managers (tenure dates): Wang Yu'ke (November 29, 2017, to October 9, 2019), Zhu Kun (June 18, 2019, to July 16, 2021), Wang Song (April 29, 2019, to July 16, 2021), Ma Wenwen (March 16, 2020, to March 15, 2022), Zhang Xue (March 15, 2022, to present). GF Value Return Hybrid Fund Class A is classified as a hybrid fund-partially debt-oriented fund-partially debt-oriented fund (Class A) by Galaxy Securities.
Note 4: GF Jucai Credit Bond Fund Class A was established on March 13, 2012, with a performance benchmark of 80% of the ChinaBond Corporate Bond Total Return Index and 20% of the ChinaBond Government Bond Total Return Index. Past performance (based on performance benchmarks): 2018: 6.69% (2.94%); 2019: 4.70% (1.01%); 2020: 1.66% (-1.03%); 2021: 3.70% (1.42%); 2022: 0.00% (-1.05%), data from fund regular reports; previous fund managers (tenure dates): Zhang Xue (April 29, 2022, to present), Dai Yu (March 13, 2012, to present). GF Jucai Credit Bond Fund Class A is classified as a bond fund-ordinary bond-oriented fund-ordinary bond-oriented fund (convertible bond) (Class A) by Galaxy Securities.
Note 5: Zhang Xue currently manages five products, and GF
Anrun is not included in the performance-related data as it has not been established for less than six months (established on May 30, 2023). As of May 31, the tenure returns of GF Hengtong 6-month Holding Period Hybrid Fund, GF Jiyuan, GF Value Return, and GF Jucai Credit Bond Fund were 6.53%, 0.26%, 4.39%, and 2.14%, respectively, while the corresponding performance benchmarks were 2.60%, -0.65%, 1.79%, and 0.49% (performance and performance benchmark data is from GF Fund, reviewed by the custodian bank).
Note 6: The absolute return data of the company's fixed income products is from Haitong Securities and refers to the return rate of the company's fixed income products, denominated in RMB, from January 1, 2023, to June 30, 2023. The data shows that the absolute return rate of the company's fixed income products ranges from 0.42% to 1.56%. Among them, the absolute return rate of the company's short-term bond products is relatively stable, with a range of 0.42% to 0.75%, while the absolute return rate of the company's longer-term bond products is relatively higher, with a range of 1.22% to 1.56%. However, it should be noted that past performance is not a guarantee of future performance, and investment involves risks, and investors should make investment decisions based on their own risk tolerance and investment objectives.
Note 7: Secondary Debt Fund Management Award (rating agency: Ji'an Jinxin Fund Evaluation Center, May 26, 2023), three-year comprehensive 5A rating (rating agency: Tianxiang Investment Consulting Co., Ltd., March 31, 2023) Five-star rating for three-year comprehensive investment capability (rating agency: China Merchants Securities, March 31, 2023)
(Remarks: The above is the current opinion of the fund manager, and does not represent the inevitable long-term investment strategy of the fund)  

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Risk warning: Fund has risk, investment needs to be cautious. This information does not constitute promotional material, investment advice or guarantee for any business of the Company, nor does it serve as any legal document. The Fund Manager undertakes to manage and apply the Fund's assets with honesty, credit and diligence, but does not guarantee that the Fund will make a profit, nor does it guarantee a minimum return. The Fund's past performance and awards are not indicative of future performance. Before investing in a fund, investors should carefully read the fund contract, prospectus, fund product information summary and other fund legal documents, fully understand the risk-return characteristics of the fund products, make independent decisions on fund investments and select suitable fund products based on their own risk tolerance, investment horizon and investment objectives after understanding the products and listening to the appropriateness opinions of the sales institutions. The above information does not constitute a stock recommendation, past performance of stocks does not represent future performance, the market has risks, investment must be cautious.