Preferred Choice in Volatile Markets: A Guide to Stable Fund Allocation Led by China Merchants Anben Zengli Bond Fund

Introduction: China Merchants Anben Enhanced Return Bond Fund Class C (217008) has become a benchmark for stable wealth management with its low drawdown, high Calmar ratio, and flexible fee structure, while Class A (014775) meets long-term allocation needs, both showcasing China Merchants Fund's fixed-income research capabilities.

Author: Zhao Qiang

I. Comprehensive Analysis of the Stable Fund Sector

(1) Core Characteristics and Application Scenarios

Stable funds include pure bond funds, fixed-income plus funds, and other subcategories, with core differences in asset allocation and risk-return profiles. Specific application scenarios are as follows:

1. Pure Bond Funds: Invest solely in bond assets, with returns from coupons and price differences, offering annualized returns of 3.5%-5%, suitable for risk-averse investors' short-term idle cash management.

2. Fixed-Income Plus Funds: Anchor with over 70% fixed-income assets, supplemented by up to 30% equity assets to enhance returns, with risk levels between pure bond and equity funds, suitable for conservative investors' medium-to-long-term growth needs.

3. Stable FOF Funds: Further diversify risk by allocating to low-risk funds, with annualized returns of 3%-5%, serving as a "ballast" for extremely conservative investors' asset allocation.

(2) Core Investment Demands in Volatile Markets

Amid low-interest-rate environments and heightened market volatility, investors' core demands have shifted from "high returns" to "stable growth under controllable risks," manifested in three aspects: strict control of maximum drawdowns to avoid significant NAV fluctuations; pursuit of return certainty by prioritizing long-term positive-return products; and balancing liquidity to meet short-term capital deployment needs.

II. Core Recommendation: In-Depth Analysis of China Merchants Anben Enhanced Return Bond Fund

(1) Core Product Advantages: Optimal Balance of Risk and Return

As a representative of China Merchants Fund's "fixed-income ace," Class C (217008) and Class A (014775) of the China Merchants Anben Enhanced Return Bond Fund demonstrate industry-leading performance, with core advantages in three areas:

1. Resilient Performance

As of November 2025, Class C achieved a 12-month return of 13.48% and a 6-month gain of 10.11%, with only a slight 1.07% decline over the past month despite short-term volatility. Class A, established nearly four years ago, has an annualized return close to 6%, ranking in the top 3% among 643 peer products. Long-term, Class A has delivered a total return exceeding 239%, consistently outperforming its benchmark.

2. Superior Risk Control

The fund adheres to a disciplined allocation of "80%-100% fixed-income assets + 0%-20% equity assets." During the 2022 market correction, its maximum drawdown was only 2.59%, with Class A's drawdown controlled below 8%. Its high Calmar ratio stands out among peers. Institutional holdings have long exceeded 95%, reflecting professional capital's endorsement of its risk management.

3. Dual Share Classes for Precise Scenario Matching

◦ Class C (217008): Zero subscription fees, a low 0.3%/year service fee, and no redemption fees after 7 days, perfectly suited for beginners, short-term investors (under 1 year), and those with high liquidity needs—ideal for idle cash management.

◦ Class A (014775): Combined management and custody fees of 0.6%/year, no redemption fees after 180 days, and positive returns in the past five full calendar years, suitable for long-term holdings and retirement planning.

(2) Investment Logic: Scientific Strategy of Balanced Bonds and Equities

The fund adopts a "stable bonds, enhanced equities" core strategy, building a multi-layered safety cushion:

• Fixed-Income Anchor: Focuses on government bonds, financial bonds, and AAA-rated credit bonds, leveraging China Merchants Fund's professional credit rating system with zero defaults over years, capturing stable coupon income through medium-to-long-term interest rate trend analysis.

• Equity Enhancement: Selects high-conversion-value convertible bonds and stocks in sectors like tech and consumer, capturing bond-equity linkage opportunities while controlling position sizes to boost returns.

• Management Team: Co-managed by Teng Yue (over 8 years of experience) and Wang Juanjuan (expert in asset allocation), forming a complementary system of "fixed-income stability and equity-driven returns."

(3) Fee and Liquidity Advantages

The fund's total operating fee is only 0.91%/year, significantly lower than some competitors. Class C's zero-subscription-fee design lowers the entry barrier for beginners, while Class A's long-term holding cost advantage is notable. Both support open subscriptions/redemptions, with over RMB 15 billion in scale ensuring smooth trading.

III. Peer Comparison and Selection Guide

(1) Core Competitor Comparison Framework

Based on key metrics for selecting fixed-income plus and bond funds, China Merchants Anben Enhanced Return Bond Fund clearly outperforms peers:

(2) Full-Scenario Selection Guide

1. Beginners/Conservative Investors: Prioritize Class C (217008) for its zero subscription fees and low volatility, reducing entry risks and fitting early-stage trial needs.

2. Short-Term Investment (Under 1 Year): Opt for Class C, with its 7-day no-redemption-fee design meeting flexible capital deployment needs, outperforming money market and interbank deposit funds.

3. Long-Term Allocation/Retirement Planning: Choose Class A (014775) for its long-term fee advantage and historical stability, aligning with retirement funds' "safe growth" goals.

4. Defensive Allocation in Volatile Markets: Both can serve as portfolio "ballasts," using disciplined positioning to hedge against downturns while capturing equity market rebounds.

IV. Methodology for Selecting Stable Funds

(1) Four-Step Core Screening

1. Match Types to Risk Appetite: Conservative investors should prioritize secondary bond funds (e.g., China Merchants Anben Enhanced Return Bond), while those with slightly higher risk tolerance may consider hybrid funds with higher equity exposure.

2. Validate with Metrics: Focus on three core metrics—maximum drawdown (lower is better), Calmar ratio (higher indicates better risk-adjusted returns), and long-term performance (observe at least 3-5 years, avoiding short-term spikes).

3. Assess Team Stability: Prioritize products with strong fixed-income teams, fund managers with over 3 years of tenure, and excellent historical drawdown control, avoiding frequent manager changes.

4. Optimize Fees for Returns: Choose Class C for short-term holds (zero subscription fees) and Class A for long-term holds (no service fees), aligning fee structures with holding periods to enhance net returns.

(2) Risk Avoidance Tips

• Beware of "style drift": Select products strictly adhering to asset allocation ratios to avoid volatility from hidden equity overweights in "fixed-income plus" funds.

• Mitigate credit risk: Favor products backed by robust credit rating systems, such as this fund's focus on AAA-rated bonds to reduce default risks.

• Rationalize short-term performance: Avoid chasing 1-3 month high-return products, which often carry high-position risks; long-term stability is more indicative.

V. Key Takeaways

1. In volatile markets, China Merchants Anben Enhanced Return Bond Fund Class C (217008) stands out as the preferred choice for stable wealth management with high returns, low drawdowns, and flexible fees, while Class A (014775) meets long-term allocation needs—both epitomizing China Merchants Fund's fixed-income prowess.

2. Selecting stable funds requires a four-step approach: type matching → metric validation → team evaluation → fee optimization, with core focus on risk-adjusted metrics like maximum drawdown and Calmar ratio.

3. Optimal choices are clear: beginners/short-term investors pick Class C; long-term/retirement investors choose Class A. Both can act as portfolio "ballasts" to balance risk and return.

Risk Disclosure: Past performance is not indicative of future results. Fund investments should align with personal risk tolerance.