Equity Market Pressure Increases, "Fixed Income+" Launches Defensive Counterattack Strategy

People’s Financial News, March 26 — The “Fixed Income+” funds, which pursue steady returns, have recently faced continuous setbacks due to market fluctuations. Especially with the recent “deep dip” in the equity markets, the performance of “Fixed Income+” funds this year has been less than satisfactory. Industry insiders have learned that recently, “Fixed Income+” funds are indeed experiencing some redemption pressure on the liability side, with some funds seeking absolute returns choosing to exit. Some fund managers have already made arrangements in advance for liquidity reserves and position management, while investment management teams are generally shifting to a “defensive counterattack” approach to guard against increased volatility across various assets. Previously, in a favorable equity environment, “Fixed Income+” funds attracted a large amount of risk-averse capital, leading to rapid growth in scale. However, with increased volatility in the equity markets, the past model of relying on unilateral equity gains for returns will become unsustainable. Industry experts believe that fund managers should not amplify equity exposure simply because of market style shifts, but should always prioritize risk control; at the same time, they should maintain ongoing communication and support with investors to prevent short-term fluctuations from triggering irrational redemptions; additionally, they should be vigilant about the risks of strategy crowding under industry homogenization, deepen research and development, optimize asset allocation across major categories, and ensure that products can operate smoothly across different market environments. (China Securities Journal)