"Fixed Income+" becomes "Fixed Income-"? Controlling drawdowns has become the "diamond tip" for wealth management companies

People’s Finance News, April 7—Recently, following an investigation and interviews, reporters learned that many “fixed-income plus” wealth management products have shown net value volatility. Their performance is under short-term pressure, and they have been jokingly dubbed “fixed-income minus” by some investors. According to Wind data, as of April 6, 204 “fixed-income plus” products had negative annualized returns over the past month, and in some cases the loss range exceeded 10%. Several wealth management companies have already begun optimizing their allocation strategies and strengthening drawdown control. In this round of market volatility, some “fixed-income plus” wealth management products have also exposed shortcomings in product design and risk management, including the lack of contingency plans. Industry insiders believe that “fixed-income plus” wealth management products are still an important choice for residents’ prudent allocation in a low-interest-rate environment. Wealth management companies, in the field of multi-asset and multi-strategy investing, need to further address gaps in their capabilities, improve and upgrade their research and investment frameworks, and enhance refined risk controls to better withstand market cycles. (China Securities Journal)