With the persistence of a low-interest-rate environment and declining yields from deposits and pure bond assets, there is a growing demand among residents for stable asset allocation options. Assets that offer both low volatility and income elasticity are becoming increasingly scarce, making fixed-income plus products a key bridge between cash-like assets and more volatile equity products. A more pertinent question is: what exactly does the "plus" in fixed-income plus add, and what gives it the stability it claims? Examining this series of products offers a complete methodology worth decoding.

What the "Plus" Adds: A Full-Spectrum Matrix Constrained by Drawdown

A common misconception in the market is that fixed-income plus products are merely simple combinations of bond funds and a bit of stock. Southern Asset Management's answer is that what gets added is not a single asset, but a flexible portfolio governed by clear risk budgeting. Around different drawdown targets and equity exposure anchors, the company has built a full-spectrum product matrix spanning from ultra-low to high volatility—ranging from the ultra-low-volatility Southern Huiyuan 6-Month Holding and Southern Haoxiang 3-Month FOF to the higher-elasticity Southern Baoyuan and Southern Guangli Returns, aiming to provide suitable options for investors with varying risk appetites. The value of this matrix lies in transforming abstract notions of "stability" and "elasticity" into comparable parameters: low-volatility products strive to operate within lower equity exposure anchors and strict drawdown targets, while high-elasticity products can expand their equity upside to pursue sufficient sharpness, aiming to increase sources of elasticity while keeping boundaries within risk budgets. This also allows investors to avoid guessing how much "plus" is involved; they can simply follow the blueprint to find the product that matches their own risk preference.

Who Executes: A Well-Organized Team of Experienced Professionals

Methodology ultimately relies on people for execution. The fixed-income plus investment team at Southern Asset Management consists of more than 30 members with an average industry experience of over 15 years, working in a coordinated division of labor under the joint oversight of Deputy General Manager and Chief Investment Officer (Fixed Income) Li Haipeng and Deputy General Manager and Co-Chief Investment Officer Sun Lumin, with dedicated research providing full-process support. The team covers multiple styles and directions: Sun Lumin previously managed China's first capital-protected fund; Lin Lefeng, known for macro asset allocation expertise; Li Wenliang, with extensive multi-asset management experience; and Liu Wenliang, who has specialized in convertible bonds for years—each with clearly defined style positioning and each guarding a segment of drawdown budget. The team's client performance can serve as a sample of methodology implementation: over the past year, the proportion of profitable investors in Southern Antai Mixed, Southern Ningyue One-Year Holding, and Southern Baoyu Mixed stood at 98.33%, 99.19%, and 92.93%, respectively; Southern Baotai One-Year Holding reached 99.96%; Southern Fuyu Prudent Pension and Southern Haosheng Prudent Select posted 99.72% and 92.54%, respectively (data source: Fund 2026 Interim Reports). When a product's risk budget, investment research process, and executor style are highly consistent, net value performance can be better translated into the actual holding experience of clients.

How Stability Is Pursued: A Four-Stage Closed Loop from Risk Constraints to Review and Correction

The product matrix answers the question of "what to add," while the investment research process answers "how to stay stable." Southern Asset Management has distilled its fixed-income plus investment logic into four pillars: pure bond as the foundation, equity/convertible bond enhancement, risk constraints, and review and correction. Specifically, guided by income targets and drawdown targets, management conducts top-down coordinated assessment of market and macro asset direction and implements risk oversight, while fund managers make independent decisions and bear responsibility for portfolio outcomes; after investment implementation, daily monitoring, monthly trading reviews and strategy communication, and periodic performance attribution and profile analysis are conducted to promptly correct allocation deviations. The origin of this methodology traces back further: in 2002, Southern Asset Management issued China's first bond fund, Southern Baoyuan; in 2003, it established the first independent fixed income department in the public fund industry and issued China's first capital-protected fund in the same year; with over two decades of experience managing long-term funds such as pensions and annuities, the "absolute return" DNA is ingrained in the team's investment instincts, extending from long-term fund management to public fixed-income plus practice. In 2017, Southern Asset Management issued China's first public FOF fund—Southern All-Weather Strategy Mixed (FOF)—further enriching its multi-asset allocation toolkit. The digital intelligence system serves as another line of defense within this methodology. Leveraging its proprietary Euler system, Southern Asset Management achieves full integration across the "research-investment-trading-risk control" business chain, with risk control coverage across pre-investment, mid-investment, and post-investment processes, advancing the risk control paradigm from "after-the-fact remediation" to "pre-investment prediction, mid-investment intervention, and post-investment iteration"; on the fixed income side, a self-developed municipal bond credit rating assistant aids decision-making, while on the equity side, AI tools enable intelligent research report analysis and stock selection.

Where It Lands: Extending the Methodology into "Quality Creation and Nurturing"

Southern Asset Management has consolidated years of fixed-income plus practice into the "Quality Creation and Nurturing Plan," focusing on refined lifecycle management of products, matching appropriate products and strategies with channels and investors, and engaging in full-cycle follow-up and ongoing support to work with partners in building a virtuous cycle where "fund performance is stable and investor experience is positive." "Quality creation" means clearly defining the risk-return positioning at the inception of a product to delineate boundaries for holders; "quality nurturing" means continuous follow-up during the long holding period after establishment, helping investors understand and hold onto products. This support also takes root at the channel level—collaborating with Bank of China's "Huijie Plan" to launch Southern Haoxin FOF and with China Construction Bank's "Longying FOF Plan" to introduce Southern Wenjia FOF, embedding "prioritizing holding experience" into product pacing. For Southern Asset Management, the significance of this plan extends beyond the product level. As one of the earliest public funds to enter the fixed income sector in China, starting from the country's first bond fund, more than two decades of accumulated experience with an investor-first philosophy ensures that "Quality Creation and Nurturing" is not just an isolated slogan but a natural extension of company operations. From product creation, investment management, to service reach, this team works with company resources to extend the concept of stable operations into every touchpoint investors can perceive. The ultimate goal of fixed-income plus is the tangible account experience of holders. Funds carry risks, and investment requires caution. Past performance of funds does not predict future results; performance of other funds managed by the fund manager does not constitute a guarantee of fund performance, and net value growth rates do not represent actual returns for investors holding the funds. Before investing, please carefully read the fund contract, prospectus, and other legal documents, fully understand product details and risk characteristics, and invest rationally based on your own risk tolerance.