Personal Pension Products Include 'Fixed Income Plus' Funds for First Time, 22 Fund Managers Add Y-Share Classes

Published Sep 29, 08:12 AM UTC

China's personal pension product catalog has been formally expanded to include 'fixed-income plus' (固收+) products, according to a report from 财联社 (CLS) on September 28. A total of 22 fund management firms, including E Fund, China Southern, Zhong Ou, China Merchants, China Asset Management, Fullgoal, Penghua, and others, announced they will add Y-class fund shares to certain partial-equity hybrid funds or secondary bond funds starting September 29. Of these, 10 are partial-equity hybrid funds and 12 are secondary bond funds. This expansion follows the previous inclusion of pension-targeted FOFs and index funds. The 'fixed-income plus' products, which use bonds as a base with equity enhancements, offer risk-return characteristics between stable and aggressive, filling a gap in the pension investment spectrum. The move is based on a notice from authorities regarding the inclusion of equity-containing secondary bond funds and partial-equity hybrid funds into the personal pension fund product catalog, providing pension investors seeking stable returns with a more tailored option and smoothing the risk-return gradient for personal pension investments.

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