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Last week (August 5-August 11), both stocks and bonds in the domestic capital market experienced a significant correction, especially the bond market showed obvious signs of cooling down, which also led to poor performance of a number of bond-type FOFs, with more than half of such FOFs reporting negative weekly returns. However, among equity FOFs, with the active real estate market, some real estate-related funds have become the key to boosting FOF performance, providing performance support for some FOFs that hold a large number of such funds in the general decline.

In a week of general decline, bond FOFs also fell more than they rose

From the decline of the external capital market to the investigation of some domestic bond-making institutions, the funds that had been entrenched in the bond market last week began to loosen up, resulting in negative weekly returns for a number of bond funds and dragging down the performance of bond-type FOFs.

Wind statistics show that last week, there were 11 bond-type FOFs with negative weekly yields (statistical initial share), accounting for more than half of the 18 bond-type FOFs. Why did the stable bond funds also have negative yields? This is related to the internal and external factors that occurred during the week.

Whether it is the unbalanced external carry trading funds that began to close their positions following the appreciation of the yen, or the domestic investigation and punishment of institutions that violated the regulations in the bond market, a series of negative factors have affected the investment sentiment of the bond market, especially for funds with high holding costs and low risk appetite, which chose to withdraw from the market quickly last week.

The reporter noticed that the bond-type FOFs with the largest holdings that fell sharply last week generally had negative yields in the past week. Wind statistics show that the decline of Zheshang Zhipei Ruixiang One Year last week reached 0.5884%, the largest decline among all bond-type FOFs. The second quarter report shows that the heavily-held Huaxia Selected Fixed Income Allocate RMB has fallen by more than 1% in the past week.

At the same time, some medium- and short-term bond products are still resilient to declines. For example, Xinyuan Xinxuan Anyue 3-month yielded 0.0495% last week, making it the best performing bond FOF last week. Judging from its second quarter report holdings, the yields of heavily held Debon Short Bond A, Haifutong CSI Short-Term Financing ETF, and Xinyuan Medium- and Short-Term Bond A were positive in the past week, and these funds have a very obvious short-term bond allocation orientation.

Of course, for the bond market, some people also believe that short-term fluctuations are still large, and allocation still needs to wait. The winning rate of short-term shorting is higher than that of long-term, and long-term needs to be more cautious. The research report of Shanghai Dongsheng Futures pointed out that the security of short-term bonds is higher than that of long-term bonds. If you want to avoid the current policy risks, it is still recommended to pay attention to the short hedging strategy. After entering mid-to-late August, it is recommended to pay attention to the opportunities in the 12 contract for short-selling treasury bond futures.

Last week, the real estate market supported the strong performance of some equity FOFs

Compared with the bond market, the equity market did not perform well last week. The Shanghai Composite Index closed down 1.49% on a weekly basis, and the Wind All A Index fell 1.67%. All major broad-based indexes showed similar performances. It can be said that since August, the A-share market has still not seen any relatively sustainable rebound opportunities.

However, the real estate sector was active last week. Although there were also rebounds in the coal and environmental protection industries, overall, the performance of the real estate market has supported the performance of some FOF products that have heavy positions in it. Wind statistics show that among the products with relatively outstanding performance last week, many of them have already heavily invested in real estate industry funds in the second quarter report.

Equity FOFs performed the best. Last week, only one of the seven equity FOF products recorded a positive return (statistical initial share), namely Cathay Industry Rotation A, which achieved a performance of 1.8369% last week. From the perspective of the fund's heavily invested funds at the end of the second quarter, Yinhua CSI Mainland Real Estate Theme ETF and Southern CSI All-Share Real Estate ETF achieved a performance of more than 3% in the past week, leading all heavily invested funds.

Of course, the allocation of many dividend assets has always been the cornerstone of the fund's stable bottom position, and it also enables many products to resist the multiple market fluctuations this year. At present, some public offering FOFs with excellent performance have heavy positions in related varieties. However, there are also some different views on the valuation and allocation value of dividend assets in the industry.

Shangyin Fund's analysis pointed out that for dividend assets, the continuous revaluation of stable dividend assets brought about by the downward shift of the domestic risk-free interest rate center will continue, but some assets may need to solve the problem of high short-term trading congestion.

On the contrary, upstream resource and consumer manufacturing assets with limited supply have experienced a very sharp pullback recently. Shangyin Fund pointed out that the current market pricing expectations are too pessimistic. There may be room for recovery in the future when this round of recession comes to an end or domestic expectations for stabilizing growth policies improve.

For growth assets, Shangyin Fund believes that their overall volatility will be higher, but the semiconductor equipment, chip design, and AI upstream industry chains with better prosperity are expected to still have opportunities for growth after this round of correction.

Statistics of top performance products of various types of public offering FOF last week (data source: Wind)

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