Recently, the initial offering of the Southern Balanced Return Hybrid Fund (Class A: 026925; Class C: 026926), the first quantitative strategy product under China Guangfa Bank's "GF Rigorous Selection" program, has successfully concluded. According to announcements and Wind data, the fund raised 7.53 billion yuan, with high investor enthusiasm, making it the first fund of its kind in the past five years to surpass 75 billion yuan in a new issuance. The successful fundraising not only demonstrates the robust product selection capabilities of China Guangfa Bank's "GF Rigorous Selection" initiative but also marks another significant milestone for Southern Fund. Leveraging its "Premium Management" brand, Southern Fund continues to deepen product operations and services to meet the evolving asset allocation needs of residents. Furthermore, the strong sales of this quantitative strategy product reflect broad investor recognition of Southern Fund's quantitative team.
Market Cycles Shift, Balanced Equity-Bond Strategies Present Allocation Opportunities
The current capital market is experiencing a volatile uptrend, with frequent fluctuations and sector rotations becoming the norm. Balanced equity-bond strategies dynamically allocate between stocks and bonds, balancing defensive and offensive characteristics to effectively withstand market volatility. When combined with quantitative model operations, these strategies can systematically capture trading opportunities and reduce human judgment bias. The synergy of these dual strategies achieves a reasonable balance between risk and return, offering distinct advantages in the present market environment and representing a high-quality choice for investor portfolios.
It is understood that the Southern Balanced Return Fund employs an equity-bond balance + quantitative enhancement core investment framework. It uses medium-to-high grade credit bonds as a foundational holding to build a safety cushion and smooth portfolio volatility. The equity allocation integrates both subjective research and quantitative stock selection logic, further incorporating a high-Sharpe quantitative strategy to broaden return sources. The overall portfolio balances safety and growth potential, aiming for adaptability across the entire market and all cycles. This directly addresses the core investor demand for "stability with income growth," striving to provide China Guangfa Bank clients with a high-quality allocation target capable of navigating market fluctuations while delivering steady returns and a positive holding experience.
China Guangfa Bank's "GF Rigorous Selection" Continuously Enhances Investor Experience
Notably, "GF Rigorous Selection" is a key brand for China Guangfa Bank in the fund business, dedicated to long-term investor service. It aims to use professional services to accompany clients in achieving long-term, stable returns, helping them become winners in the long run. The initiative also fully leverages the bank's advantages as a financial product platform, ushering in a new client service model for China Guangfa Bank's wealth management business.
The newly issued Southern Balanced Return Fund is the fourth "GF Rigorous Selection" product resulting from the collaboration between China Guangfa Bank and Southern Fund. In 2022, the two parties launched their first such product, Southern Yu Wen, which delivered outstanding performance. According to first-quarter reports and Wind data, the fund has achieved a cumulative return of 19.92% since inception and a one-year cumulative return of 6.05%, both significantly outperforming their respective benchmarks, marking the beginning of a high-quality partnership. In 2023, the second product, Southern Hao Wen, was officially launched, receiving a warm market response with an initial offering size ranking among the top Cohen & Steers Closed-End Opportunity Fund products at the time. It has achieved a cumulative return exceeding 12% since inception. Through years of collaboration, the two parties have established a mature and efficient cooperation model, achieving coordinated development across the entire process, which has continuously enhanced the reputation of the "GF Rigorous Selection" brand. The third product, Southern Yi Wen, launched in 2025, also won the trust of many investors with its stable characteristics and solid performance, offering a good client holding experience. This new product represents a comprehensive upgrade, innovatively adding a high-Sharpe quantitative strategy to once again write a new chapter in the quality story of "GF Rigorous Selection."
Southern Fund's "Premium Management" Empowers, Welcoming a New Industry Blueprint
Southern Fund consistently adheres to its investment philosophy, strictly follows investment discipline, and relies on its strong investment research team and comprehensive risk control system to build its core service brand, "Premium Management." It solidifies the foundation for long-term performance through meticulous product operation and management, protects investor wealth with professional, companion-style services, and delivers steady investment returns to live up to the trust of bank channels and clients. The launch of the Southern Balanced Return Fund in partnership with China Guangfa Bank is a powerful practice of Southern Fund's "Premium Management" brand philosophy. Through high-quality products, professional operations, and long-term companionship, it injects strong momentum into the bank's wealth management ecosystem.
Persistent Cultivation for Long-Term Success, Leading the New Quantitative Arena
The Southern Balanced Return Hybrid Fund is jointly managed by Xu Gonglei, a fund manager from Southern Fund's Quantitative Investment Department, and Yang Neng, a fund manager from the Fixed Income Investment Department. Yang Neng, currently a fixed income fund manager at Southern Fund with over a decade of industry experience and a proven track record of stable performance in his representative works, is primarily responsible for the bond asset management of the Southern Balanced Return Hybrid Fund. The fund's equity asset investment is primarily managed by Xu Gonglei, who possesses over ten years of experience in quantitative and macro strategy investment research. He combines the objective, rigorous engineering mindset of quantitative investing with the active judgment capabilities required for multi-asset allocation. Leveraging the mature platform system of Southern Fund's quantitative team, Xu Gonglei manages several core flagship products with distinct characteristics and high market recognition. The assets under his management rank among the top for active quantitative fund managers in China's public fund industry.
Behind excellent fund managers lies the support of a professional team. Southern Fund's quantitative team, tempered by years of market experience, has established a platform-based quantitative investment research system. With its dual-line "macro allocation + quantitative investment" research framework,完善的 risk control mechanisms, AI empowerment across all domains, and leveraging Southern Fund's strong platform advantages, the team has developed its proprietary Shennan Research Platform as the core investment research hub. This has established a complete four-layer research architecture encompassing "underlying data - selected factors - quantitative strategies - risk monitoring," gradually breaking through industry homogenization bottlenecks and becoming a benchmark force for high-quality development in the public fund quantitative arena.
It is understood that Southern Fund's quantitative team has now built a comprehensive product matrix driven by both tool-oriented and allocation-oriented strategies, fully covering mainstream quantitative segments to precisely meet the differentiated allocation needs of institutional and individual investors. Tool-oriented products focus on standardized index allocation needs, covering mainstream broad-based index enhancements such as the CSI 300, CSI 500, and CSI A500, as well as thematic Smart Beta products in growth and dividend styles. They offer advantages of high transparency, controllable tracking error, and stable excess returns, serving as high-quality standardized investment tools in the market. Allocation-oriented products are represented by core offerings such as Southern Jun Xin, Southern Comparative Advantage, Southern Zhihui Quantitative, and Southern Balanced Return. These products aim to smooth market volatility and pursue long-term, steady appreciation through multi-asset diversification, multi-strategy integration, and dynamic risk control.
Looking ahead, against the backdrop of continuously upgrading resident wealth management needs and a complex, ever-changing market environment, quantitative-empowered balanced equity-bond funds, with their professional asset allocation capabilities and clear risk-return profiles, are poised to play an increasingly important role in residents' wealth management portfolios. Through the dual empowerment of the "GF Rigorous Selection" and "Premium Management" brands and the launch of products like the Southern Balanced Return Fund, China Guangfa Bank and Southern Fund jointly provide investors with a complete solution spanning professional asset management to precise wealth services. This represents a positive practice within the financial industry in serving residents' wealth management needs.