The persistent low-interest-rate environment is fundamentally reshaping how households allocate their assets. According to estimates from China International Capital Corporation, approximately 75 trillion yuan in household time deposits will mature in 2026, and with numerous banks having already slashed time deposit rates to the "1 percent range," the yield space for traditional wealth management products continues to shrink. Concurrently, the equity market's ongoing volatility and accelerated sector rotation mean that a single asset class is increasingly unable to deliver stable returns.

Against this backdrop of asset scarcity and high market fluctuations, hybrid bond funds—those with the flexibility to invest in equities without being wholly dependent on them—are emerging as a vital tool for channeling the reinvestment needs of household wealth. It is within this context that Fuguo Fund's Fuguo Jiayu Bond Securities Investment Fund (Class A: 028964; Class C: 028965) is scheduled to conclude its subscription period on September 18. The product is positioned as a second-tier bond fund, with a mandate requiring that at least 80% of fund assets be allocated to bonds. The combined allocation to equities, depositary receipts, equity funds, hybrid funds, and assets such as convertible bonds, separately tradable convertible bonds, and exchangeable bonds will range between 5% and 20% of the fund's total assets. The objective is to offer investors a core holding option in an uncertain market environment.

Note: The specific constraints outlined in the fund contract stipulate that investment in bond assets shall not be less than 80% of fund assets, while the combined investment in equity assets (including stocks, depositary receipts, equity funds, hybrid funds) and convertible bond assets (including separately tradable convertible bonds and exchangeable bonds) shall account for 5%-20% of fund assets. Of this, investment in domestic stocks and stock ETFs must be no less than 5% of fund assets, and investment in stocks listed on the Stock Connect is capped at 50% of the equity portion. Additionally, the fund's holdings in other funds shall not exceed 10% of the fund's net asset value. For actual operational details, please refer to relevant disclosure materials, and for detailed investment strategies, consult the fund's legal documents.

As single-asset bets become increasingly challenging, bond funds with equity kickers—designed to achieve a balance of offense and defense through a blend of stocks and bonds—are gaining broader adoption among investors. Data from Huayuan Securities reveals that as of the end of the second quarter of 2026, the total scale of hybrid bond funds across the market had reached 3.35 trillion yuan, a quarter-over-quarter increase of 10.8% and a new all-time high. Within this, second-tier bond funds held a dominant position with assets of 2.3 trillion yuan. The launch of Fuguo Jiayu is timely, as its strategy of "seeking stability through bonds and returns through equities" aligns well with investors' current dilemma of fearing both missing out on rallies and suffering drawdowns. During equity upswings or structural bull markets, the equity and convertible bond positions can capture opportunities and enhance portfolio flexibility; when markets enter correction phases, the fixed-income base of over 80% aims to hedge equity volatility and smooth out portfolio drawdowns. Furthermore, the product can invest in the Hong Kong market via the Stock Connect mechanism, providing a diversified source of investment targets.

Beyond its clear strategic positioning, the fund manager's capabilities in asset allocation and stock selection are crucial to the product's performance. The designated fund manager for Fuguo Jiayu, Zhang Yuhao, brings nine years of securities industry experience and nearly five years of investment management expertise. His prior roles include serving as a macroeconomist at HIS Markit (now part of S&P Global), chief economist at an overseas macro hedge fund, and chief macro analyst at Western Securities. Having risen from a sell-side macro chief, Zhang's macroeconomic analysis experience spans both overseas and domestic markets, providing him with a holistic perspective beneficial for multi-asset allocation. His sensitivity to marginal changes in macro variables such as interest rate trends, inflation expectations, and monetary policy enables him to adeptly time and size allocations across major asset classes like equities and bonds.

In practice, he employs a top-down approach to establish the central allocation across major asset classes, extending analysis to mid-level industries and micro-level targets while incorporating bottom-up stock selection. He also flexibly adjusts the equity-bond ratio in response to market conditions, adhering to an absolute return mindset and striving to consistently outperform the performance benchmark. This methodology has been validated across the products he manages. According to fund periodic reports, as of June 30, 2026, the three hybrid bond funds Zhang has managed for over a year—Fuguo Yuexiang Return 12-Month Holding Period A, Fuguo Shuangli Enhanced Bond A, and Fuguo Wendan Tianli Bond A—recorded one-year net value growth rates (with performance benchmarks) of 18.62% (2.92%), 14.41% (1.57%), and 15.07% (1.57%), respectively.

Note: Data sources are from fund periodic reports as of June 30, 2026. Fund returns do not represent actual investor returns, and historical performance does not guarantee future results.

The fund's stable operations are also underpinned by the robust research platform of its parent company. As one of the nation's "old ten" fund management firms, Fuguo Fund has over 27 years of history and maintains a comprehensive fixed-income product line, spanning cash management, treasury bonds, credit bonds, convertible bonds, and fixed-income-plus categories. It pioneered a three-tier credit risk control system in the industry, incorporating a credit committee, a credit research department, and fund manager accountability, with an internally developed rating system that is more stringent than external ratings to ensure strong credit risk prevention. Additionally, its equity research platform works in close synergy with the fixed-income team, offering solid research support for the equity investments of these funds.

The issuance of this product coincides with a critical window for household wealth reallocation. On one hand, deposit rates continue to decline, narrowing the yield potential of traditional stable assets; on the other, the equity market's volatile divergence makes it increasingly difficult for any single asset class to provide consistent returns. Looking ahead, second-tier bond funds like Fuguo Jiayu, which use bonds as a foundation with equity enhancements, are poised to become powerful tools for investors seeking core holdings in the low-interest-rate era.

Risk Warning: Funds involve risks, and investment should be undertaken with caution. Before making investment decisions, investors are advised to carefully read the fund contract, prospectus, product summary, and other legal documents, fully understanding the fund's risk-return characteristics and considering their own risk tolerance. This fund carries a medium-low risk rating (R2) and is suitable for investors with a risk tolerance of C2 or above. The fund may invest in stocks listed on the Stock Connect, subject to specific risks. It may also invest in depositary receipts, which carry additional unique risks. For investors purchasing through direct sales channels, subscription and redemption fees are not charged, and sales service fees will be refunded under certain conditions.