The 'fixed income plus' investment category continued its expansion in the first half of the year. Data shows that as of June 30, 2026, the total assets under management for 'fixed income plus' funds, including hybrid bond funds and bond-biased hybrid funds, reached 3.23 trillion yuan. This represents an increase of nearly 21% from the 2.68 trillion yuan recorded at the end of the previous year. While the overall size has grown, performance across these products has varied. The average return for the first half was 1.73% for primary bond funds, 2.74% for secondary bond funds, and 3.35% for bond-biased hybrid funds, indicating that differences in equity exposure significantly impacted returns.
Using the 2.03% gain of the ChinaBond Composite Wealth Index as a benchmark for pure bond performance, a 'fixed income plus' product that not only beats this benchmark but also surpasses the CSI 300's 7.55% first-half return can be seen as successfully capturing structural opportunities in the equity market for enhanced returns. Among all such products that exceeded the CSI 300's performance, Fuguo Fund had 13 products on the list, ranking first in the market by number. These 13 products span various types, including primary bond funds, secondary bond funds, and bond-biased hybrids, offering a spectrum of risk-return profiles from low volatility and stability to balanced and enhanced strategies. This demonstrates Fuguo Fund's deep and diversified capabilities in the 'fixed income plus' arena.
Diverse Strategies for Superior Performance
The 13 Fuguo Fund products that outperformed the CSI 300 index each have distinct characteristics and are managed by portfolio managers with different styles. Veteran fixed income manager Zhang Yuhao, with 9 years in the securities industry and nearly 5 years of investment management experience, delivered strong results across several products he manages. His expertise lies in top-down macro analysis and major asset allocation. The funds he solely manages, including Fuguo Wenjian Tianli A, Fuguo Youhua Zengqiang A, Fuguo Yuexiang Huibao 12 Month Holding A, and Fuguo Xingxiang Huibao 6 Month Holding A, achieved first-half returns of 10.27%, 9.24%, 12.57%, and 10.07% respectively, significantly outperforming their respective benchmarks. The fund he co-manages with Chen Xin, Fuguo Wenjian Shuangying A, returned 9.97%, while the fund co-managed with Zhu Chenjie, Fuguo Shuangli Zengqiang A, returned 8.95%, both far exceeding their benchmark.
Lyu Chunjie, Deputy General Manager of the Fixed Income Investment Department at Fuguo Fund, brings a research background in macroeconomics and asset allocation, honed across securities, insurance, and fund companies. The fund he manages, Fuguo Shouyi Zengqiang A, achieved a first-half return of 7.58%. Zhang Mingkai, Assistant Director of Fixed Income Investment, specializes in credit bond research, while Zhu Zhenzhe is a seasoned fixed income researcher with extensive experience in bonds and convertible bonds. The fund they co-manage, Fuguo Lixiang Huibao 12 Month Holding A, delivered an impressive first-half return of 21.70% with a maximum drawdown of only -3.13%. The fund co-managed by Ning Feng and Zhu Chenjie, Fuguo Tengxiang Huibao 6 Month Rolling Holding A, also performed notably well, with a first-half return of 18.95%.
Yu Bo from the Equity Investment Department is a manager with a distinct absolute return style, prioritizing drawdown control. The two products she manages, Fuguo Ancheng Huibao 12 Month Holding A and Fuguo Tianrun Huibao A, returned 15.75% and 14.80% respectively in the first half, outperforming the CSI 300 while keeping maximum drawdowns below 7%. The fund managed by Yuan Yi, Deputy Director of Equity Investment and Chief Economist, Fuguo Ruili Dingqi Kaifang A, a 'fixed income plus' fund with a 30% equity allocation, also achieved a solid return of 10.66%.
Chen Siyang from the Quantitative Investment Department is among the earliest managers to systematically apply quantitative methods to fixed income funds. He possesses deep expertise in both quantitative model construction and bond investment research. The fund he manages, Fuguo Xingli Zengqiang A, returned 9.09% in the first half.
Balancing Stability with Growth Potential
While outperforming the CSI 300 tests a product's 'elasticity,' drawdown control reflects its foundational 'resilience.' The core value of a 'fixed income plus' product lies not only in capturing upside but also in preserving capital during downturns. Within Fuguo Fund's product lineup, several funds not only beat the pure bond benchmark in the first half but also maintained a maximum drawdown of less than 3% over the past year, demonstrating an attractive risk-return profile.
Within the fixed income team, the fund managed by Huang Jiliang, General Manager Assistant and Head of Fixed Income Investment, Fuguo Yuli A, returned 2.67% in the first half with a one-year maximum drawdown of only 1.96%. The fund managed by Wu Lei, Deputy General Manager of Fixed Income Investment, Fuguo Wenjian Tianchen A, returned 4.71% with a one-year drawdown of 2.87%. The fund managed by seasoned fixed income manager Zhu Chenjie, Fuguo Wenjian Shuangjing A, returned 3.41% with a one-year drawdown of 2.65%.
In the quantitative 'fixed income plus' space, funds managed by Chen Siyang, including Fuguo Fengli Zengqiang A, Fuguo Baoli Zengqiang A, and Fuguo Shengli Zengqiang A, also delivered solid returns of 4.43%, 3.86%, and 3.29% respectively in the first half, all with one-year maximum drawdowns under 3%.
In the FOF category, the fund managed by Zhang Ziyan, Director of Multi-Asset Investment, Fuguo Xinwang Wenjian Yanglao 1 Year Holding A, returned 4.21% with a one-year drawdown of 2.43%. The fund managed by Shi Jing, Research Director of Multi-Asset Investment, Fuguo Zhiheng Wenjian 90 Day Holding A, returned 2.46% with a one-year drawdown of 1.50%. The fund managed by Wang Dengyuan, General Manager of the Multi-Asset Investment Department, Fuguo Yinghe Wenjian 6 Month Holding, returned 2.09% with a notably low one-year maximum drawdown of 0.45%, showcasing the department's strong risk control capabilities in multi-asset allocation.
Sustained Excellence in Fixed Income Management
The consistent outperformance is underpinned by Fuguo Fund's long-term commitment and systematic approach to fixed income investing. Data shows that as of June 30, 2026, among pure bond fund managers, Fuguo Fund ranked in the top quartile for its three-year, five-year, and seven-year returns. Among fixed income fund managers, it consistently ranked in the top third for the same periods. These top-tier rankings across multiple timeframes validate the team's ability to navigate different market cycles.
As a leading player in the public fund industry's fixed income space, Fuguo Fund emphasizes specialized roles and collaborative teamwork. Its fixed income department features seasoned professionals with over a decade of experience, such as Huang Jiliang, Lyu Chunjie, and Wu Lei, alongside a clear succession of mid-career talent like Zhu Chenjie and Zhu Zhenzhe. The Multi-Asset Investment Department, with managers like Wang Dengyuan, Zhang Ziyan, and Shi Jing, focuses on expanding 'fixed income plus' strategies through asset allocation and fund selection. Furthermore, equity managers collaborate with fixed income managers on a matrix of 'fixed income plus' products. Chen Siyang, a key figure in quantitative 'fixed income plus,' manages assets exceeding 43.1 billion yuan, having developed a specialized expertise in this area. The 'Fuguo Fixed Income Family' product matrix offers a complete spectrum of risk-return profiles, from ultra-low volatility strategies to products involving convertible bonds, bond-biased FOFs, and enhanced secondary bond funds.
In the first half of 2026, with 13 products outperforming the CSI 300 and a robust lineup demonstrating leading drawdown control, the 'Fuguo Fixed Income Family' has met investor expectations for participating in rallies while preserving capital in downturns. Looking ahead, it will continue to leverage its professional specialization and collaborative model, employing diverse strategies to adapt to changing markets and strive to deliver stable returns for investors even in volatile conditions.
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