Since the start of the third quarter, as A-shares have entered a phase of high-level consolidation and correction, institutional investors have shown a stronger preference for risk avoidance. Fixed income plus has become a popular investment choice thanks to steady returns and strict drawdown control. Based on Wind data, a review of fund launches shows that as of September 24, a total of 95 fixed income plus products (including hybrid first-level bond funds, hybrid second-level bond funds and bond-biased hybrid funds) had been established since the beginning of the third quarter, with total scale of 57.422 billion yuan. Alongside capital inflows, the fixed income plus sector is also undergoing new changes. What used to be an opaque bundle is now becoming a transparent white box, with product investment strategies publicly broken down into finer categories such as fixed income plus value, fixed income plus dividend and fixed income plus technology. This is not merely a change in marketing tactics, but an industry restructuring that places greater emphasis on investor needs and forces the research and investment system to evolve.

What exactly is being added to fixed income

A review of industry practices shows that in the past, when managing fixed income plus products, managers generally completed multi-asset and multi-strategy allocation within a single product and dynamically adjusted according to risk targets. In product descriptions, clients were first given an easy-to-understand risk label such as low volatility, medium volatility or high volatility. As for which assets were internally allocated, which strategies were adopted and when adjustments were made, these were mainly left to the fund manager. While white box fixed income plus still uses bonds as the core holding, the plus portion concentrates on a certain equity style or strategy, such as technology, cyclical or quantitative. Its advantage is a clear strategy that helps clients understand the sources of returns and risks. When the chosen strategy is in a favorable period, product performance and the Sharpe ratio can be very impressive. White box fixed income plus gives clients more choice over the plus portion, while non-white-box fixed income plus leaves more allocation responsibility to the manager. Using a vivid analogy, white box fixed income plus is like ordering dishes at a restaurant, where clients can choose according to their own needs. Non-white-box fixed income plus is like choosing a set meal, where clients buy an already packaged multi-strategy portfolio. Neither is inherently superior or inferior. The key is whether the product's risk-return characteristics match one's own risk tolerance.

Multiple sales channels including banks, brokerages and third-party internet platforms are also carrying the white-box trend in fixed income plus through to the end. For example, the app of China Merchants Bank has launched a strategy fixed income plus section. Related introductory content shows that fixed income plus uses interest-bearing assets such as bonds as the core holding to strictly control volatility, supplemented by a small equity position to pursue enhanced returns. Strategy fixed income plus refers to flexibly capturing upside opportunities using multiple strategies such as stocks and convertible bonds, meaning there is elasticity on the upside and protection on the downside. On the Ant Fortune platform under Alipay, low-volatility, medium-volatility and high-volatility fixed income plus products all display their allocation strategies, making it convenient for investors to choose intuitively. For example, among low-volatility fixed income plus products, many carry labels such as bonds plus convertible bonds, bonds plus gold stocks plus large cap, and bonds plus technology plus large cap, presenting fixed income plus strategies more clearly and transparently to facilitate investor screening. How to clearly present the plus assets or strategies by clarifying product investment direction and strategy, and shift product positioning from vague strategy to clear tool, is precisely the fundamental significance of the white-box trend in fixed income plus.

The foundation of white box fixed income plus

Industry sources indicate that the rapid rise of white box fixed income plus is not an accidental industry hotspot, but an inevitable result of multiple factors resonating together, including market conditions as a catalyst, evolving channel demand and upgrades in industry models. The shift of fixed income plus from opaque bundle to white box, namely strategy transparency and clear positioning, is essentially a transformation of product positioning from the vague goal of enhancing returns to a tool-based and labeled asset allocation instrument, which aligns with the current market demand for standardized and transparent management and helps improve the holding experience. Since the start of this year, many public fund companies have been intensively positioning in the fixed income plus sector. Early fixed income plus products generally adopted a fixed ratio of 70% bonds plus 30% stocks, resulting in serious strategy homogeneity. At present, fixed income plus funds have upgraded from a dual-asset model to a multi-asset toolbox. Not only have equity categories been subdivided into dividend, technology, cyclical and convertible bond areas, but asset classes have also expanded to public REITs, gold, overseas bonds and stocks, ETFs and alternative assets, forming a truly multi-asset allocation framework. It is worth noting that behind the white-box trend in fixed income plus are higher requirements for both fund managers and investors. In the past, products were mainly defined by volatility and drawdown ranges, and the management responsibility for investment decisions was highly concentrated in the fund manager. Now, white-boxing is essentially about clarifying the boundaries of rights and responsibilities between managers and investors, with managers disclosing the underlying equity strategies, turning them into a standard toolbox and returning style choices to investors. From an industry perspective, current exploration of white box fixed income plus is roughly unfolding in two directions. One is track white box, where the equity enhancement position is anchored to clear directions such as technology, cyclicals and dividends, which investors know before buying. The other is method white box, which does not lock into a single track but fully explains the enhancement method, such as quantitative stock selection, so that investors understand the logic of portfolio construction.

Taking ICBC Credit Suisse's fund ICBC Tianhui Bond A as an example, a review of its quarterly reports shows that the equity portion of the fund has been relatively concentrated in the cyclical sector for several consecutive quarters. Specifically, the fund uses bonds as the foundation to build a steady core holding and moderately focuses its equity portion on the cyclical sector, making it a track white box focused on cyclicals. Since its establishment in June 2019, ICBC Tianhui Bond A has experienced several market cycles. In terms of performance, the fund's 2026 interim report data show that as of June 30, 2026, its return since establishment was 41.47%, while the benchmark for the same period was 30.95%, delivering significant excess returns. From a longer assessment perspective, the fund's returns over the past five years and three years were 20.33% and 22.97% respectively, while the benchmark for the same period was 16.85% and 12.55%, also achieving good excess returns. Compared with track white box, method white box places greater emphasis on investment discipline and does not focus on one or several tracks, which also tests the fund manager's investment conviction and ability to control their hands. Taking ICBC Tianfu Bond A as an example, the fund focuses on a risk parity balanced allocation approach and is a second-level bond fund that balances offense and defense. Against the backdrop of declining traditional wealth management returns, it moderately shortens duration to reduce interest rate volatility risk. In bond asset allocation, it mainly focuses on interest rate bonds and high-grade credit bonds. On the equity side, it mainly invests in stocks with good fundamentals, relatively high dividend yields and a stable dividend history. Data from the 2026 second quarter report show that as of June 30, 2026, the equity portion of ICBC Tianfu Bond A accounted for 6.58% of the fund's total assets, maintaining an overweight position in the broader financial sector in industry allocation, striving to achieve moderate return enhancement with smaller volatility.

Rebuilding the ecosystem

From the perspective of asset allocation and investor suitability, fixed income plus products with clearer styles enhance transparency but also imply more concentrated risk exposure. Industry sources indicate that white-boxing itself has inherent limitations. The clearer the style of a fixed income plus product, the stronger its dependence on market style. When a certain style remains ineffective for a long time, the appeal of that white box product will decline. Taking the technology market trend of the past three to four months as an example, some white box fixed income plus products anchored to that track showed outstanding sharpness during the technology rally, but when the style reversed, the volatility of concentrated exposure also amplified simultaneously, turning fixed income plus tragically into fixed income minus. This requires investors to look at product positioning rather than historical returns, to know exactly what they are buying and ideally to have some ability to judge style. In this regard, ICBC Credit Suisse Fund advises investors that when purchasing fixed income plus products, they should first clarify their own risk preferences and investment goals. Investors need to assess the time horizon of available funds, such as whether they can be locked up for more than three years, expected returns and the maximum drawdown they can bear. Second, they should look through product characteristics and understand the sources of returns. Investors should review the prospectus and focus on which types of assets the plus portion invests in, such as stocks, convertible bonds or quantitative strategies, as well as style labels such as technology growth or dividend low volatility. In addition, risk-return cost-effectiveness can be evaluated through indicators such as historical maximum drawdown and the Calmar ratio. Third, investors are advised to find a balance between equity exposure ratio, holding period and their own capital arrangements according to their risk tolerance.

Note: 1. The A share class of ICBC Tianhui Bond was established on June 11, 2019. Fund manager He Xiuhong has managed this product since June 11, 2019, and Chen Han has managed the product since October 9, 2020. The annual net value growth rates of Class A in 2021-2025, since establishment, over the past three years and over the past five years were 6.67%, -4.97%, -10.21%, 5.08%, 13.98%, 41.47%, 20.33% and 22.97% respectively, while the benchmark returns for the same periods were 3.47%, -0.01%, 3.04%, 5.65%, 3.47%, 30.95%, 12.55% and 16.85% respectively. Data are from the fund's periodic reports. 2. The A share class of ICBC Tianfu Bond was established on October 31, 2013. Fund manager Guo Xuesong has managed this product since February 25, 2021. The annual net value growth rates of Class A in 2021-2025 were 8.39%, -2.35%, -0.59%, 12.34% and 8.72% respectively, while the benchmark returns for the same periods were 4.25%, 4.25%, 4.25%, 4.25% and 4.25% respectively. Data are from the fund's periodic reports. Fund fee description: 1. The fee structure of ICBC Tianhui Bond (front-end load) is as follows: A share subscription fee: if the subscription amount is M, for non-pension clients: when M is less than 1 million yuan, the subscription fee rate is 0.80%; when 1 million yuan is less than or equal to M and M is less than 3 million yuan, the subscription fee rate is 0.50%; when 3 million yuan is less than or equal to M and M is less than 5 million yuan, the subscription fee rate is 0.30%; when M is greater than or equal to 5 million yuan, the subscription fee is 1,000 yuan per transaction; for pension clients: when M is less than 1 million yuan, the subscription fee rate is 0.32%; when 1 million yuan is less than or equal to M and M is less than 3 million yuan, the subscription fee rate is 0.15%; when 3 million yuan is less than or equal to M and M is less than 5 million yuan, the subscription fee rate is 0.06%; when M is greater than or equal to 5 million yuan, the subscription fee is 1,000 yuan per transaction. Redemption fee: if the holding period is Y, for Class A shares: when Y is less than 7 days, the redemption fee rate is 1.50%; when 7 days is less than or equal to Y and Y is less than 30 days, the redemption fee rate is 0.50%; when 30 days is less than or equal to Y and Y is less than 1 year, the redemption fee rate is 0.10%; when 1 year is less than or equal to Y and Y is less than 2 years, the redemption fee rate is 0.05%; when Y is greater than or equal to 2 years, the redemption fee rate is 0.00%. Operating fee rates: the management fee rate of this fund is 0.60% per year, and the custody fee rate is 0.10% per year. The Class A shares of this fund do not charge a sales service fee. 2. The fee structure of ICBC Tianfu Bond (front-end load) is as follows: A share subscription fee: if the subscription amount is M, for non-pension clients: when M is less than 1 million yuan, the subscription fee rate is 0.80%; when 1 million yuan is less than or equal to M and M is less than 3 million yuan, the subscription fee rate is 0.50%; when 3 million yuan is less than or equal to M and M is less than 5 million yuan, the subscription fee rate is 0.30%; when M is greater than or equal to 5 million yuan, the subscription fee is 1,000 yuan per transaction; for pension clients: when M is less than 1 million yuan, the subscription fee rate is 0.32%; when 1 million yuan is less than or equal to M and M is less than 3 million yuan, the subscription fee rate is 0.15%; when 3 million yuan is less than or equal to M and M is less than 5 million yuan, the subscription fee rate is 0.06%; when M is greater than or equal to 5 million yuan, the subscription fee is 1,000 yuan per transaction. Redemption fee: if the holding period is Y days, for Class A shares: when Y is less than 7 days, the redemption fee rate is 1.50%; when 7 days is less than or equal to Y and Y is less than 30 days, the redemption fee rate is 0.75%; when 30 days is less than or equal to Y and Y is less than 1 year, the redemption fee rate is 0.10%; when 1 year is less than or equal to Y and Y is less than 2 years, the redemption fee rate is 0.05%; when Y is greater than or equal to 2 years, the redemption fee rate is 0.00%. Operating fee rates: the management fee rate of this fund is 0.30% per year, and the custody fee rate is 0.10% per year. The Class A shares of this fund do not charge a sales service fee. Risk disclosure: The views are for reference only, are time-sensitive, do not constitute investment advice or return promises, and do not represent the fund's specific future allocation direction. The fund manager manages and uses fund assets in accordance with the principles of due diligence, good faith and prudent diligence, but does not guarantee that the fund will make a profit or guarantee a minimum return. Past performance of a fund does not predict future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. ICBC Tianhui Bond and ICBC Tianfu Bond are bond funds, and their expected returns and risk levels are lower than those of equity funds and hybrid funds, but higher than those of money market funds. Funds involve risks. Before investing in a fund, investors should carefully read legal documents such as the Fund Contract, Prospectus, Fund Product Information Summary and updates, and choose investment products suitable for their own risk tolerance based on a comprehensive understanding of the product, fee structure, fee standards of various sales channels and appropriate opinions from sales institutions. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well.