As demand deposit rates approach zero, one-year fixed deposits enter the "1% era," bond yields linger near historic lows, and the equity market shows a diverging pattern of "decent opportunities but greater volatility," investors collectively face a difficult question: where should money go?
Pure deposits and pure fixed income offer ever-narrowing return potential and struggle to shoulder the task of wealth appreciation, while betting one-sidedly on equities leaves many trapped between "fearing losses while holding, fearing gains while empty."
The demand for household wealth management is shifting from a single-minded pursuit of "stability" toward a value proposition of "controllable risk with achievable gains."
This is precisely the underlying logic behind the rapid rise of fixed income plus products in recent years. Within the spectrum of "fixed income plus," secondary bond funds, with their clear rule of "bonds as the main position with a small equity enhancement," break through the return ceiling of pure bond funds while capping volatility through an equity position limit, making them a cost-effective allocation option in a low-rate era.
Demand is in place—can supply keep up?
At this moment, Huaan Ganxuan Bond Securities Investment Fund (hereinafter referred to as: Huaan Ganxuan Bond) arrives to meet the moment.
This is a secondary bond fund issued by Huaan Fund, custodied by Industrial and Commercial Bank of China, and scheduled for an initial offering through ICBC channels in November 2026. It is also the first fixed income plus product launched through ICBC channels, with its core highlights distilled into three points.
On the product side: with "potential equity drawdown × equity allocation ≤ portfolio drawdown tolerance" as the core constraint, drawdown management is written into the institutional framework.
On the fund manager side: the fund is led by "dual equity-bond" Xu Fuqiang, whose low-volatility fixed income plus capability has been verified in live trading through similar products under management.
On the strategy side: driven by a dual engine of "steady bond foundation plus diversified enhancement strategies," small wins are accumulated into larger victories atop a safety cushion.
These three dimensions do not stand alone; they jointly point to the same operating logic: in a market where opportunity and volatility coexist, Huaan Ganxuan Bond will operate with an absolute return strategy, emphasizing the risk-return ratio.
It uses the bond foundation to hold the baseline, disciplined and diversified equity positions to pursue enhancement, and a tiered early-warning mechanism to control drawdowns.
For investors, maintaining a steady mindset and extending the holding period may be more important than judging short-term direction.
So how do product positioning, investment strategy, and fund manager form an internally consistent logical loop?
How does a "low-volatility fixed income plus" write its volatility ceiling into the rules?
Huaan Ganxuan Bond is a standard secondary bond fund with a clear asset structure: bonds as the foundational position and a small proportion of equity assets to enhance returns.
Its product positioning is explicitly "low-volatility fixed income plus"—it does not pursue relative leadership in short-term performance rankings but seeks to maximize risk-adjusted returns; what it wants is not to "run the fastest" but to "walk steadily and be holdable."
So how is this "stability" achieved?
The answer lies in a quantifiable and executable constraint mechanism.
Huaan Ganxuan Bond uses risk budgeting as its core management tool: first set portfolio objectives (target return, target drawdown), then based on the expected returns and potential drawdowns of equity and bond assets, back-solve the tolerable equity risk exposure and derive the optimal equity-bond ratio that satisfies the constraints.
The core constraint can be summarized in one formula: potential equity drawdown × equity allocation ≤ portfolio drawdown tolerance.
This means the equity position is not decided by subjective judgment but reverse-derived from the drawdown constraint: it locks the portfolio's volatility ceiling at the institutional level and fundamentally avoids the possibility of "fixed income plus" degenerating into "fixed income minus."
On the basis of risk budgeting, Huaan Ganxuan Bond adopts a "strategic plus tactical" two-layer allocation framework.
In short: strategic anchoring, tactical flexibility.
At the strategic level, medium- to long-term target equity-bond ratios are determined based on product positioning and risk budgeting, forming the investment "anchor" that will not deviate significantly due to short-term market fluctuations; at the tactical level, dynamic adjustments are made through monthly and quarterly regular reviews and event-driven temporary activation mechanisms. Any adjustment must be justified and discussed and executed according to a four-dimensional decision framework of "economic cycle positioning, market valuation levels, liquidity environment, and risk warning indicators."
A clear positioning and disciplined mechanism ultimately must answer one question: who is suitable to buy?
From a client perspective, Huaan Ganxuan Bond suits three types of capital: first, deposit and wealth management replacement funds seeking returns above pure bonds without enduring large stock market swings; second, steady clients with lower risk appetite (R2) and a recommended holding period of six months or more; third, clients with asset allocation "rebalancing" needs—those with overly high equity positions who need to add stable assets as ballast, or those overly concentrated in deposits and wealth management who wish to diversify moderately.
From a scenario perspective, it corresponds to three allocation situations: first, when interest rates decline and deposit rates keep falling, existing funds need a "new home"; second, when stock market volatility increases and the market is in a correction phase, investors want to participate in equities in an "offensive when able, defensive when needed" manner; third, as the "ballast" layer in household asset allocation, complementing equity funds and deposits.
If product characteristics determine "whether it is worth allocating," then the market environment determines "why now."
The current allocation window is formed by the resonance of three forces: macro, market, and supply.
At the macro level, domestic economic data continues to diverge: demand-related indicators weaken sequentially while exports and price readings are stronger, with significant "K-shaped" divergence across industries; social financing and credit growth slow, geopolitical conflicts push up commodity prices, and expectations of overseas monetary tightening moderate.
Under this pattern, the win rate of one-sided bets on either stocks or bonds is declining.
At the market level, pure bond yields are already at historic lows with limited further downside, and the contribution of coupon income to portfolio returns is converging; participating in the market with a structure of "80% bonds plus 10%–20% equities" preserves offensiveness when equities rise while relying on the bond foundation to hold firm when volatility intensifies.
At the supply level, low-volatility steady products are relatively scarce on the distribution side against the backdrop of an "asset shortage," highly compatible with the overall steady risk appetite of ICBC's R2 client base.
With "dual equity-bond" capability, why can Xu Fuqiang alone manage both ends well?
If product positioning and strategy framework determine what this fund "wants to do," then whether it can ultimately deliver depends on "who does it."
For secondary bond funds, the standard for choosing a person is especially demanding; it tests not the depth of a single asset but whether the same manager can simultaneously command "the trend of bonds" and "the alpha of stocks."
Xu Fuqiang, the proposed fund manager of Huaan Ganxuan Bond, is precisely a rare composite talent with both capabilities.
In terms of background, Xu Fuqiang holds a master's degree in economics from Peking University and has 15 years of securities industry experience, 10 years of investment experience, and 7 years of public fund investment experience. He joined Rongtong Fund in 2011, serving successively as a macro, nonferrous metals, and automotive industry researcher, segregated account investment manager, and public fund manager; he joined Huaan Fund in August 2023 and currently serves as a fund manager in the Fund Investment Department.
In terms of his circle of competence, Xu Fuqiang's career path shows a clear stepwise extension: from 2011 to 2015 he focused on research in large cyclical industries such as nonferrous metals and automobiles; from 2015 to 2018 he managed principal-protected segregated accounts; and since 2018 he has managed public funds. His macro research background established a global perspective for asset allocation; long-term deep coverage of nonferrous metals gives him keen perception of global commodities and inflation pulses; and his circle of competence spans stocks, bonds, and convertible bonds, enabling him to grasp bond market trends and convertible valuations top-down while uncovering individual stock alpha bottom-up. Multi-asset, cross-cycle experience has honed his ability to build portfolios that endure bull and bear markets.
In terms of investment philosophy and framework, Xu Fuqiang's style can be summarized as steady and balanced, multi-asset, and highly market-adaptive; he pursues reasonable medium-term returns and strives to accumulate long-term excess returns. His framework rests on three pillars: first, asset allocation dynamically adjusts equity-bond ratios based on risk budgeting; second, bond investment flexibly uses duration, curve, and leverage strategies; third, equity investment adheres to "using the cycle as the base color and arranging by prosperity."
This is highly consistent with the low-volatility fixed income plus product logic of Huaan Ganxuan Bond.
More noteworthy is his verified experience managing similar products: on July 28, 2025, Xu Fuqiang took over the secondary bond fund Huaan Tianli 6-Month Holding Period and simultaneously repositioned it as low-volatility fixed income plus, with an equity center matching the benchmark (10% equity content). As of September 30, 2026, during Xu Fuqiang's management period, the product achieved a cumulative return of 3.60%, versus a benchmark return of 1.34% over the same period, an excess return of nearly 2.3 percentage points; the maximum drawdown during the period was only 1.08%, versus a peer average of 4.10%, highlighting an outstanding risk-return profile. (Data source: WIND, Huaan Fund, as of 2026/9/30. Huaan Tianli's performance benchmark is: China Bond Composite Full Price Index return *90% + CSI 800 Index return *10%. The period since management began is from 2025/7/28 to 2026/9/30. Product performance has been reviewed by the custodian bank. Peer funds are mixed bond secondary funds, classified according to Wind's investment type secondary classification, as of 2026.9.30. Investing involves risk; historical performance does not predict the future.)
The significance of these numbers is that even under the constraint of an equity center of only 10%, an excess return of nearly 2.3% was still achieved, indicating that the return did not come from aggressive position exposure but from refined management of both equity and bond ends.
This is precisely the capability of a secondary bond fund manager that is hardest to replicate.
How do the dual engines drive, seeking elasticity atop the safety cushion?
With the person chosen, how is the money invested?
Ganxuan's investment framework can be summarized in eight words: dual-engine driven, accumulating small wins into larger victories—the bond end solidifies the foundation, the equity end seeks elasticity, and both operate in coordination under the unified constraint of risk budgeting.
Engine one: a steady bond foundation—the portfolio's "safety cushion" and source of baseline returns.
Huaan Ganxuan Bond's foundation is mainly interest rate bonds, providing certainty of baseline returns from four paths: coupon income, roll-down income, capital gains, and carry income. At the operational level, it mainly uses three types of strategies: duration strategy, yield curve strategy, and leverage carry strategy.
Supporting these strategies is a research system of "four dimensions in one, cycle as the foundation": top-down (high-frequency macro data → judge direction → switch duration) and bottom-up (entity research → verify macro → correct deviations) cross-validate, and medium-term duration decisions are made only after macro and micro confirm each other.
The four dimensions are economic fundamentals, funding conditions, policy, and trading information.
As a result, excess returns on the bond end form two major sources: first, driven by fundamental research; second, driven by cycle gaming.
Engine two: diversified enhancement strategies—obtaining elastic excess returns under the protection of the safety cushion.
If the bond end addresses "holding firm," then the equity end must answer "how to enhance."
The enhancement tools are stocks and convertible bonds, with the methodology of "using the cycle as the base color and arranging by prosperity," and a gradient arrangement for risk assets: contrarian positioning (≤30% risk assets): allocate to left-side assets where negative news is exhausted and dividend yield protection is sufficient, such as some oversold consumer and real estate chain names (waiting for right-side signals); trend-following allocation (40%–60% risk assets): allocate to right-side assets where earnings inflection points appear and market consensus forms, usually constituting the portfolio's core allocation zone; satellite allocation: assets with rising prosperity but relatively expensive valuations, held as satellite positions and closely tracked; active avoidance: top-declining assets with marginal prosperity deterioration and "Davis double-kill" risk.
In stock selection, cyclicality, growth, and safety are all considered; in information processing, a three-layer filter is built—thinking one layer deeper than market consensus; distinguishing the confidence and importance of information, with operations that "think top-down and decide bottom-up"; and ultimately improving long-term win rates through balanced allocation.
The two engines each have their roles, but to truly coordinate, a sequence and discipline are still needed.
The two engines do not advance in parallel but follow a strict order: at the initial stage of position building, first establish the bond foundation → estimate the thickness of the safety cushion → gradually build equity positions within the safety cushion → monitor daily to control equity volatility so it does not break through the safety cushion → as the safety cushion thickens, gradually raise equity positions to the target level.
The equity position is not established all at once but is "fought while watched," always holding the bottom line.
Discipline is reflected not only in position building but throughout the entire operation.
The portfolio monitors actual volatility in real time; when approaching the upper limit, an early warning is triggered and handled in three progressive layers: first, reduce total stock positions to directly lower high-risk exposure; second, shift convertible bonds from equity-like to bond-like, reducing elasticity without sharply cutting positions; third, shorten bond duration to reduce the impact of interest rate volatility.
At the same time, a certain proportion of highly liquid assets is always maintained to avoid forced stop-losses due to insufficient liquidity in extreme markets.
In addition, when the equity-bond ratio or risk contribution deviates from established thresholds, or when the macro environment undergoes structural changes, dynamic rebalancing is triggered.
Looking back, what this framework aims to solve is actually a core proposition—how to pursue reasonable returns while controlling drawdowns.
The key lies in two points: risk budgeting defines the volatility ceiling, and prosperity gradient arrangement improves the win rate.
Combined, these make "advancing with low volatility" logically feasible.
Whether the framework can deliver also depends on whether it can adapt to the market environment ahead.
Xu Fuqiang's year-by-year performance in managing similar products is listed as follows: 1. Huaan Tianxiang 6-Month Holding Period Mixed Securities Investment Fund: benchmark "CSI 800 Index return *15% + Hang Seng Index return (adjusted for exchange rates) *5% + China Bond Composite Full Price Index return *80%." Class A was established on 2021/07/21; its calendar-year performance for "2022–H1 2026" and since inception (and benchmark performance) were -5.95% (-3.17%), 2.51% (-0.53%), 8.34% (7.21%), 7.46% (3.00%), -0.49% (1.70%), 18.53% (7.99%); Class C was established on 2022/07/21; its calendar-year performance for "2023–H1 2026" and since inception (and benchmark performance) were 2.12% (-0.53%), 7.90% (7.21%), 7.03% (3.00%), -0.67% (1.70%), 15.79% (10.31%). Sun Lina's management period was 2021/07/21–2023/03/27, Lu Ben's management period was 2021/07/21–2025/12/08, Shi Yuxin's management period began on 2021/07/23 and continues to date, and Xu Fuqiang's management period began on 2024/07/08 and continues to date. 2. Huaan Tianli 6-Month Holding Period Bond Securities Investment Fund: benchmark "China Bond Composite Full Price Index return *90% + CSI 800 Index return *10%." Classes A/C were established on 2021/02/05; their calendar-year performance for "2021–H1 2026" and since inception (and benchmark performance) were 2.79%/2.42% (1.50%), -3.10%/-3.50% (-1.68%), 2.60%/2.19% (0.82%), 6.19%/5.77% (5.92%), 4.64%/4.23% (0.58%), 1.39%/1.19% (1.97%), 15.14%/12.67% (9.33%). Zhou Yiming's management period began on 2021/02/05 and continues to date, Lu Ben's management period was 2021/02/05–2025/12/08, and Xu Fuqiang's management period began on 2025/07/28 and continues to date. 3. Huaan Baoli Allocation Securities Investment Fund: benchmark "35% * Tianxiang Convertible Bond Index return + 30% * Tianxiang 280 Index return + 30% * Tianxiang Treasury Bond Full Price Index return + 5% * financial interbank deposit rate." It was established on 2004/08/24; its calendar-year performance for "2021–H1 2026" and since inception (and benchmark performance) were -9.80% (6.43%), -15.04% (-8.79%), -17.91% (-2.36%), 1.56% (8.98%), 9.21% (11.89%), 21.90% (4.22%), 1513.64% (260.88%). Chen Yuan's management period began on 2018/11/12 and continues to date, and Xu Fuqiang's management period began on 2026/07/13 and continues to date. Former similar products: 1. Rongtong Tongxin Flexible Allocation Mixed Securities Investment Fund: benchmark "CSI 300 Index return *50% + China Bond Composite (Full Price) Index return *50%." It was established on 2015/06/15; its calendar-year performance for "2021–H1 2026" and since inception (and benchmark performance) were 7.22% (-1.20%), 12.51% (-10.80%), 2.24% (-4.68%), 5.02% (10.35%), 4.90% (7.94%), 88.63% (4.37%), 272.60% (9.26%). Yu Zhiyong's management period was 2015/06/15–2026/06/13, Xu Fuqiang's management period was 2018/05/18–2023/08/05, Liu Shule's management period was 2023/08/05–2026/06/13, and Wang Di's management period began on 2026/04/21 and continues to date. 2. Rongtong Convertible Bond Securities Investment Fund: benchmark "China Convertible Bond Index return *70% + China Bond Composite Full Price (Total Value) Index return *20% + CSI 300 Index return *10%." Classes A/C were established on 2013/03/26; their calendar-year performance for "2021–H1 2026" and since inception (and benchmark performance) were 32.20%/31.69% (12.66%), -9.42%/-9.78% (-9.11%), -3.60%/-3.99% (-1.06%), -13.61%/-13.95% (6.89%), 17.67%/17.20% (14.35%), -6.28%/-6.46% (2.80%), 24.08%/19.41% (56.92%). Xu Fuqiang's management period was 2018/05/18–2023/08/05, and Fan Xin's management period began on 2023/08/05 and continues to date.
According to the latest prospectus, the current subscription fee, redemption fee, and sales service fee standards for this fund are as follows (fee discounts are subject to the display of the sales institution; M/N respectively refer to amount/holding period): Class A shares subscription fee: M<5 million yuan at 0.30%; M≥5 million yuan at 1,000 yuan per transaction, with no sales service fee; Class C shares have no subscription fee, and the annual sales service fee rate is 0.20% (under the direct sales model: the sales service fee charged on fund shares is returned to investors along with redemption proceeds (or liquidation proceeds) when investors redeem fund shares or the fund contract terminates. Under the distribution model: for fund shares continuously held for more than one year, the continued sales service fee is returned to investors along with redemption proceeds (or liquidation proceeds) when investors redeem fund shares or the fund contract terminates.); individual investors' redemption fees are, for Class A shares: N<7 days 1.5%; 7 days≤N<30 days 0.50%; N≥30 days 0%; for Class C shares: N<7 days 1.5%; N≥7 days 0%. Institutional investors' redemption fee rates for Class A and Class C shares are: N<7 days 1.50%; 7 days≤N<30 days 1.0%; N≥30 days 0.00%. The management fee for both Class A and Class C shares of this fund is 0.60% per year, and the custody fee is 0.15% per year.
Risk disclosure: The fund management company does not guarantee that this fund will be profitable, nor does it guarantee minimum returns. Past performance of a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. The operating history of China's fund industry is relatively short and cannot reflect all stages of stock market development. Fund product returns involve volatility risk; investing requires caution. For details, please carefully read the fund contract, prospectus, and other fund legal documents. This fund is a bond fund, and its expected return and expected risk level are higher than those of money market funds but lower than those of equity funds and mixed funds. If this fund invests in stocks under the Hong Kong Stock Connect, 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. This fund is issued and managed by Huaan Fund, and Industrial and Commercial Bank of China, as a distribution institution, does not assume responsibility for product investment and redemption. MACD golden cross signals have formed, and these stocks are rising well!
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