After a powerful 17-day winning streak, the Shanghai Composite Index has firmly stabilized above 4100 points, reaching a new decade-high. Yesterday, the market finally experienced a long-awaited correction, applying a "buffer" to the heated rally. However, this adjustment did not cool market enthusiasm, as trading volume continues to hit new records and the willingness of external capital to enter the market remains strong. Today, driven by a strong surge in the technology sector, the market continued its upward climb... Then, by the afternoon session, the major indices surprisingly turned negative. Divergence in the market is growing increasingly pronounced.
On one side lies the potential for popular sectors to peak and fall back, causing short-term volatility; on the other, the temptation of profit-making effects under a bull market trend leaves many investors feeling conflicted— They don't want to miss out on further gains, yet fear buying in at highs only to face a pullback. In a bull market, while getting on board is easy, the key is to "stay steady and hold on securely." Is there currently a type of product that can balance participation enthusiasm with risk control, allowing for a more composed entry? Indeed, there is. The "Stabilizer" in a Volatile Market Once the most comfortable phase of the "money-picking行情" has passed, products that pursue steady progress become particularly valuable. Secondary tier bond funds fit this description. In terms of upside potential, they might lack the sharpness of equity funds; in terms of defense, they may not match the conservatism of pure bond funds. But when the market reaches a point where both offense and defense present opportunities, yet conditions are jumpy and unclear, such products can demonstrate their greatest value. The long-term trend of secondary tier bond funds can exhibit characteristics of "resisting declines in bear markets and following gains in bull markets." As an important category of bond funds, secondary tier bond funds use a strict bond foundation, supplemented by a lower equity allocation (under 20%) to add flexibility. Historical data shows that such products can indeed withstand downturns reasonably well while managing to participate in upswings.
Data source: Fund periodic reports, Wind. Index performance as of November 30, 2025. The operation history of funds and indices in China is relatively short. Past performance is not indicative of future results. Funds carry risks; investment requires caution. Looking at performance by year, the anti-fall capability of secondary tier bond funds is also quite robust. When the CSI 300 falls, the secondary bond fund index typically declines less. Notably, in 2021, while the CSI 300 fell (-11.38%), the secondary bond fund index actually rose (+0.57%). When the CSI 300 rises, the secondary bond fund index generally follows, gaining modestly but avoiding the pronounced "seesaw effect" often seen between stocks and pure bonds. The combination of equity-like and bond-like advantages makes secondary tier bond funds particularly suitable for the current divisive rising market. Especially for investors focused on long-term holding rather than short-term trading, secondary tier bond funds address genuine investor needs. They allow participation in the long-term opportunities of equity markets while offering a better holding experience during volatile periods. A Quality New Fund Now Launching On January 14, right during this period of market volatility and debate, the Guotai Dingli Bond型证券投资基金 (Class A: 025966, Class C: 025967) began its issuance, offering investors a new "shock-resistant" option. Guotai Dingli Bond is a typical secondary tier bond fund. The fund's strategy is clearly divided into two layers: a stable base portfolio + flexible enhancement. The base portion consists primarily of bonds, accounting for no less than 80% of assets. The enhancement portion is achieved through equity assets, with allocation controlled between 5% and 20%. The proposed fund manager, Cheng Yao, will employ a "barbell strategy," balancing the defensive nature of high-dividend/yield sectors with the offensive potential of growth sectors. This structure aims to provide sufficient elasticity for the portfolio while controlling overall volatility through strict asset allocation discipline. Cheng Yao's background is in fixed income research. Before becoming a fund manager, she served as a credit researcher, macro interest rate researcher, and bond strategy researcher, giving her profound understanding of the fixed income market. Since becoming a fund manager, she has successively managed several "fixed income plus" strategy funds, including secondary tier bond funds, with excellent performance. Her representative secondary tier bond fund, Guotai Min'an Zengli A, achieved a one-year return of 7.48%, ranking in the top 25% of its peers (273/1122), and outperforming its benchmark (2.01%) and the peer group average (6.20%). Another "fixed income plus" representative fund she manages, Guotai Tongli A, achieved a one-year return of 8.29%, ranking in the top 28% of its peers (349/1267), also outperforming its benchmark (6.14%) and the peer average (6.88%).
Data source: Guotai Fund, Wind. Data as of November 30, 2025. Performance data has been reviewed by the custodian bank. Peer ranking refers to Haitong Securities' hybrid-bond oriented category; peer average refers to Wind's secondary classification for hybrid-bond oriented funds. Fund performance benchmark: 80% ChinaBond Composite Total Value Index Return + 15% CSI 300 Index Return + 5% CSI Hong Kong Stock Connect Composite Index (RMB) Return. Fund investment strategies may change with market conditions and do not represent a guaranteed long-term investment direction. The operation history of funds in China is relatively short. Past performance is not indicative of future results. Cheng Yao's investment approach is also very flexible, dynamically adjusting asset allocation based on the market environment to achieve a balanced ratio of return and risk, highlighting her advantage in managing "fixed income plus" products. Taking Guotai Min'an Zengli Bond, also a secondary tier bond fund, as an example. In 2023, when the equity market generally trended downward, Cheng Yao gradually reduced the fund's stock allocation starting early in the year, mitigating losses for holders during the market decline. From the beginning of 2024 through the end of Q2, based on a cautious view of the volatile equity market, the fund maintained a stock allocation below 10%. In late September 2024, as domestic policies intensified, risk appetite recovered somewhat, and the stock market rebounded quickly, Cheng Yao anticipated this and increased the stock allocation to around 15%. Early this year, influenced by domestic and international factors, the A-share market experienced volatility, and the fund's stock allocation was reduced to around 10%, with overall stable performance; during the post-tariff-war market rebound in Q2, the stock allocation was increased to approximately 15%. Guotai Min'an Zengli: Net Asset Value and Asset Allocation Changes Since Cheng Yao's Management
Data source: Guotai Fund, Wind, Fund periodic reports. Performance and holdings data as of September 30, 2025. Allocation data comes from periodic reports; allocations are dynamically adjusted and do not represent current holdings. Cheng Yao has managed Guotai Min'an Zengli Bond since December 30, 2022. The operation history of funds in China is relatively short. Past performance is not indicative of future results. It can be said that the several funds managed by Cheng Yao have achieved very prominent performance, coupled with good drawdown control, making them suitable for investors with moderate risk appetite who seek steady asset appreciation. The Guotai Dingli Bond Fund (Class A: 025966, Class C: 025967) began its issuance on January 14. Investors currently seeking a strategy that is "prepared to attack yet able to defend" should pay close attention.
All funds currently managed by fund manager Cheng Yao are as follows: Guotai Min'an Zengli A (Inception Date: 2012/12/26, Benchmark: 90%*ChinaBond Composite Total Value Index Return + 8%*CSI 300 Index Return + 2%*CSI Hong Kong Stock Connect Index Return, Managed by Cheng Yao since 2022/12/30), Annual/H1 performance vs. benchmark from 2020-2025H1: 4.67%/2.00, 2.29%/0.43%, -8.62%/-1.48%, 0.69%/0.69%, 5.41%/6.22%, 2.50%/0.29%. Guotai Juli (Inception Date: 2018/03/27, Benchmark: 50%×CSI 300 Index + 50%×ChinaBond Composite Index Return, Managed by Cheng Yao since 2021/07/09, Cheng Zhou since 2018/03/27) Annual/H1 performance vs. benchmark from 2020-2025H1: 12.00%/13.50%, 5.52%/-1.21%, -2.09%/-10.80%, 1.21%/-4.68%, 3.62%/11.73%, 2.84%/0.12%. Guotai Xinli A (Inception Date: 2020/01/21, Benchmark: 15% CSI 300 + 5% CSI Hong Kong Stock Connect + 80% ChinaBond Composite Bond Index, Managed by Cheng Yao since 2021/07/09), Annual/H1 performance vs. benchmark from 2020-2025H1: 7.37%/6.14%, 9.44%/2.81%, -1.98%/-1.17%, 1.10%/1.45%, 3.57%/9.81%, 2.70%/1.85%. Guotai Tongli A (Inception Date: 2021/02/05, Benchmark: 15% CSI 300 + 5% CSI Hong Kong Stock Connect + 80% ChinaBond Composite Bond Index, Managed by Cheng Yao since 2021/07/09), Annual/H1 performance vs. benchmark from 2021-2025H1: 8.55%/1.41%, -2.26%/-1.17%, 1.42%/1.45%, 3.12%/9.82%, 3.91%/1.85%. Guotai Heli A (Inception Date: 2025/03/14) Historical performance is not displayed as the fund had been established for less than half a year as of June 30. Data source: Product periodic reports, Wind, Guotai Fund. Data as of June 30, 2025. Risk Warning: Funds carry risks; investment requires caution. This fund is issued and managed by Guotai Fund. Distributing institutions do not assume responsibility for the investment performance or redemption of the product. The past performance of a fund is not indicative of its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. The fund manager promises to manage and utilize the fund's assets with principles of honesty, creditworthiness, and diligence, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. This fund is a bond fund. Theoretically, its expected risk and return are higher than money market funds but lower than hybrid funds and stock funds. When this fund invests in Hong Kong Stock Connect target stocks, it will face specific risks arising from differences in the investment environment, investment targets, market systems, and trading rules under the Hong Kong Stock Connect mechanism. Investing involves risks. Before making an investment decision, investors should carefully read the fund's "Prospectus" and "Fund Contract," fully consider their own risk tolerance, and invest cautiously.
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