Return on Appointment Exceeds 18%? Breaking Down a Flexible Fixed-Income Sample of a Heavily Allocated Convertible Bond | 1-Minute Overview of a Good Wu Stock Fund (Eighty-two)

Ask AI · How does Huashang Fengli Fund achieve high returns with flexibility through convertible bonds?

High yield, high flexibility, high volatility.

Author | Market Value Wind Cloud Fund Research Department

Editor | Xiao Bai

Today, Fengyun Jun wants to talk with everyone about a highly distinctive open-ended product in the bond fund field — Huashang Fengli Enhanced Open-End A (003092.OF). This fund has been managed by fund manager Li Qian since the end of 2019, with each year serving as a closed operation cycle.

During Li Qian’s management over the years, this product has demonstrated a strong aggressiveness that is very different from traditional bond funds.

The most intuitive feeling when observing this fund is that its performance resembles that of an equity product. As of April 3, 2026, the fund’s cumulative return since inception reached 166%, while the Shanghai and Shenzhen 300 Index increased by 36% in the same period, with significant excess returns.

(Source: Market Value Wind Cloud APP)

Especially in the first two years after Li Qian took over, its offensive power was eye-catching. In 2020, the fund’s return was 36%, and in 2021, it achieved a high return of 45% against the trend. Both years’ performances far exceeded the benchmark of similar funds and were not inferior to the CSI 300 Index.

In the market environment of the past two years, the fund also recorded annual gains of 10.7% in 2024 and 30.7% in 2025. Since taking office, it only experienced a slight loss of 2.6% in the full year of 2023.

Under the combined punch of a bull market and bear market, Li Qian’s management has achieved an annualized return of 18.2%!

(Source: Wind)

However, extreme offense often comes with obvious volatility. Since taking office, the fund’s maximum drawdown in a period once reached -27.4%.

This means that although it is a bond fund, in extreme market conditions, investors’ psychological pressure may be no less than holding a stock fund. For the funds involved, a strong risk tolerance is required.

(Source: Wind)

Currently, this fund ranks 526th out of 5,866 in the Wu Gu Fund ranking, remaining in the upper-middle market level.

(Source: Market Value Wind Cloud APP)

As a hybrid bond secondary fund, how does it achieve such great flexibility and volatility? The answer lies in its underlying asset allocation.

As of the end of 2025, the fund’s asset allocation was 112% in bonds and 20% in stocks. Although on the surface it appears to be a bond-dominant fund, a detailed look at its bond holdings reveals that the core of this product is actually convertible bonds.

(Source: Wind)

Looking at its historical bond allocation, since Li Qian’s management, Huashang Fengli Enhanced Open-End A has significantly increased its investment in convertible bonds. By the end of the third quarter of 2024, it was fully allocated to convertible bonds, and by the end of 2025, convertible bonds accounted for nearly 60% of the bond investments, with the remaining 40% in government bonds.

(Source: Wind)

Because convertible bonds have the characteristic of “having a guaranteed minimum and flexible upside,” and are closely related to the equity market in actual operation, this high proportion of convertible bonds is the main engine of the fund’s return flexibility.

In addition to convertible bonds, direct stock positions are also an important source of return enhancement — in recent years, the stock market value of the fund has generally maintained around 20% of net assets.

In terms of industry allocation, the fund manager has demonstrated strong sector rotation and focus features. By the end of 2025, stock investments were highly concentrated in electronics, electrical equipment, basic chemicals, and computers.

(Source: Wind)

Among the top ten holdings, many are technology and semiconductor companies. By betting on high-growth tech manufacturing tracks in stocks, the fund manager further amplifies the overall portfolio’s aggressiveness.

(Source: Wind)

From the perspective of scale and share changes, since 2024, many retail and institutional investors have chosen to cash out, possibly because the increasing convertible bond holdings in Huashang Fengli Enhanced Open-End A have significantly increased risk exposure. Plus, since the fund has a one-year closed period, investors have chosen to redeem. Currently, the total size of this fund is just over 500 million yuan.

(Source: Choice Data)

In terms of holder structure, by the end of 2025, individual investors held 54.5%, and institutional investors held 45.5%.

(Source: Choice Data)

In summary, Huashang Fengli Enhanced Open-End A is a bond fund with a clear equity flavor. It does not pursue extreme control of drawdowns but seeks offensive opportunities in volatile markets by heavily investing in convertible bonds and focusing on specific sectors.

For conservative investors who dislike volatility, this product might be too “aggressive”; but for investors who want to leverage the flexibility of convertibles to enhance returns during closed operations, its unique style is worth studying.

Disclaimer: Funds carry risks, and investments should be cautious. This report ( article ) is based on market publicly available information ( including but not limited to interim announcements, periodic reports, and official interactive platforms ) as an independent third-party research; Market Value Wind Cloud strives for objectivity and fairness in the content and views of the report ( article ) but does not guarantee its accuracy, completeness, or timeliness; the information or opinions expressed in this report ( article ) are for reference only and do not constitute any investment advice. Market Value Wind Cloud is not responsible for any actions taken based on this report.

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