In the current complex and volatile financial market, investors' pursuit of stable investments has become increasingly prominent. This year, bond funds have stood out among different types of funds due to their relatively stable returns and lower volatility in a volatile market, with their overall scale advancing steadily. Wind data shows that as of the end of the second quarter of 2024, the net value of bond funds totaled 10.60 trillion yuan, an increase of 1.27 trillion yuan from the end of the previous quarter.

Among them, regular open-end bond funds are gradually becoming one of the preferred choices in the asset allocation of many investors. These funds effectively reduce the impact of frequent subscriptions and redemptions on fund performance by setting fixed open and closed periods, especially when the market is highly volatile, thus potentially achieving higher investment performance.

The bond market has a long-term positive outlook.

This year, the bond market has experienced a rise followed by a fall, with the overall market experiencing wide fluctuations and increased volatility. This has led many investors to worry: why has the bond market recently fallen? Should they redeem and withdraw their bond funds or continue to hold them? In the face of bond market volatility, how should one respond?

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Looking at the background of this round of adjustments, the main reason for the bond market's correction is that the decline in long-term interest rates was too fast in the first half of this year. To maintain the stable operation of the market, the central bank has repeatedly warned of market risks, triggering the wide fluctuations in the bond market since August. In addition, the acceleration of the issuance of government bonds and local bonds in the second half of the year has also tightened the liquidity in the bond market, leading to a significant decrease in trading activity. Under the joint action of multiple factors such as policy, funds, and market sentiment, the recent adjustment range of the bond market has also been magnified.

Despite the significant fluctuations in the current bond market, we should avoid giving up long-term holdings just because of short-term market volatility. Looking back at historical data, it is not difficult to find that although the bond market will also experience short-term fluctuations like the stock market, its overall trend is still upward, showing a market characteristic of "long bull market and short bear market." Wind data shows that since 2013, the China Bond New Comprehensive Wealth (Total Value) Index has only had one year with a negative return. Moreover, in the long run, the return on bonds is not inferior to other asset classes.

Among them, the Tianhong Ji Ji Xing three-month regular open-end bond fund (A: 008644, C: 008645) has been stable and far-reaching since its establishment, and has achieved a positive return for four consecutive complete years.

The Tianhong Ji Ji Xing fund effectively solves the frequent subscription and redemption issues faced by traditional open-end funds by setting regular open and closed subscription and redemption periods, reducing the impact of liquidity shocks on fund performance. During the closed period, the fund manager can focus more on the execution of investment strategies without external interference, thereby improving the stability of the investment portfolio and the consistency of investment strategies.

Three significant advantages of closed operation:

1. Small liquidity impact: By regularly opening every three months, Tianhong Ji Ji Xing three-month regular open-end effectively reduces the liquidity impact caused by frequent subscriptions and redemptions by investors, helping to stabilize the investment portfolio and the continuity of investment strategies.2. Significant Leverage Potential: During the closed period, the fund can fully utilize a leverage ratio of up to 200%, effectively expanding the return space by implementing leveraged carry strategies while controlling risks, with the potential to create more substantial long-term returns for investors.

3. More Stable Style: The design of the closed period ensures that the fund's returns are not diluted by a large influx of funds during bull markets, and there is no concern about substantial redemptions during bear markets. This leads to a more stable overall operational style, which is conducive to the continuous growth of the fund's long-term performance.

Diversified Strategies for Steady Progress

In terms of investment strategy, the Tianhong Jiji Xing Fund demonstrates its exceptional capabilities and unique insights. The fund employs a diversified strategy for asset allocation, carefully selecting high-quality assets such as financial bonds with a maturity of about 3 years and corporate bonds with high credit ratings as the core position. At the same time, it flexibly adjusts the position ratio in response to market fluctuations to enhance returns.

Furthermore, Tianhong Fund has pioneered a five-cycle framework for fixed-income investment, which comprehensively and deeply analyzes and predicts the fixed-income market from multiple dimensions such as macroeconomics, policy, institutional behavior, position, and sentiment. The application of this framework provides strong support for the fund's investment decisions, ensuring that the fund can maintain keen insight and accurate judgment in a complex and changing market environment.

Looking ahead, we should avoid abandoning long-term holding investment strategies solely due to short-term fluctuations. Although the policy-guided yield curve may lead to a volatile pattern in the short term, the overall macroeconomic trend remains fundamentally unchanged, with a generally stable and slightly weakening basic trend. The bond market's asset allocation strength is strong, and the medium-term interest rate center is expected to continue its downward trend, with the long-term positive logic of the bond market remaining unchanged.

Risk Warning: The market carries risks, and investment should be approached with caution. Past performance does not guarantee future results. Investors should carefully read the fund's prospectus and fund contract and other legal documents before purchasing a fund, and fully consider their own risk tolerance based on factors such as investment objectives, investment horizon, and investment experience. On the basis of understanding the product and sales suitability opinions, make rational judgments and cautious investment decisions.