Steady public mutual fund products frequently add new distribution partner institutions

Our reporter Peng Yansong

On February 27, several public fund institutions, including Morgan Funds, Vanguard Funds, and Guohai Franklin Funds, announced the addition of new distribution partners, covering a wide range of products.

Notably, among the products added through these new distribution channels, many are moderate-risk products such as low-volatility dividends, pure bonds, and stable fixed income+. In contrast, equity funds with high flexibility are relatively few. This structural characteristic reflects a subtle shift in sales channel focus under the dual influence of market conditions and policy guidance.

Frequent Appearance of Stable Products

Morgan Funds announced that Shanghai China Europe Wealth Fund Sales Co., Ltd. has been added as a distributor for its Morgan S&P Hong Kong Stock Connect Low-Volatility Dividend ETF Initiator Link C.

Vanguard Funds announced a partnership with Beijing Du Xiaoman Fund Sales Co., Ltd., signing a fund sales service agreement. Du Xiaoman Fund will start selling 14 Vanguard funds, including Vanguard JuLi A and Vanguard Daily Add A. An analysis of these 14 products shows that 10 are medium-risk and 4 are low-risk, with no high-risk products.

Guohai Franklin Funds announced that Teng An Fund Sales (Shenzhen) Co., Ltd. will act as an agent for two of its funds, including Guo Fu Heng An 30-Day Holding Period Bonds A, and will also open a regular fixed investment service. Both products are classified as medium-low risk.

Additionally, several other public fund companies such as Invesco Great Wall Funds, Ping An Funds, and Huabao Funds have recently added new distribution partners for some of their products, which are generally rated no higher than medium risk (R3).

Overall, this round of new distribution products mainly focuses on low-volatility dividends, pure bonds, and stable fixed income+, rather than equity funds. Wang Fanglin, Assistant Analyst at Morningstar China Fund Research Center, told Securities Daily that this trend is mainly due to the combined effects of current market conditions and policy guidance. Currently, investors’ risk appetite is generally cautious, and products with lower volatility and more stable returns like low-volatility dividends, pure bonds, and stable fixed income+ better match residents’ current asset allocation preferences.

“Meanwhile, regulators continue to advocate for long-term and value investing, encouraging institutions to increase supply of stable products and guiding medium- and long-term funds into the market. This has become an important policy support for expanding stable product channels. In contrast, equity funds tend to have higher volatility and risk, so they have not been the main focus of this expansion,” Wang Fanglin further explained.

Channel Value Expected to Increase

In fact, there are significant differences in marketing logic and assessment criteria between stable products and equity funds at the distribution level.

Fangfang Zeng, Operations Manager of Public Fund Products at Qianhai PaiPaiWang Fund Sales Co., Ltd., told Securities Daily that from a marketing perspective, low-volatility dividends and bond funds emphasize risk control and long-term returns, mainly targeting risk-averse investors. Their marketing core highlights asset stability, periodic dividends, and low volatility, emphasizing their defensive role during market fluctuations to meet the asset allocation needs of conservative individual and institutional investors.

In contrast, equity funds focus more on growth potential and high-yield opportunities to attract aggressive clients, emphasizing industry prosperity, capital appreciation, and long-term growth in marketing.

From an assessment perspective, the differences are even more pronounced. Fangfang Zeng explained that stable products pay more attention to continuous growth in scale, customer satisfaction, and holding periods. Channel evaluations typically focus on sales stability, repurchase rates, and customer retention. Equity funds, on the other hand, are more concerned with relative performance rankings, trading activity, and new customer acquisition, with assessments leaning toward realized returns and market hotspot responsiveness.

Many interviewees noted that the recent intensive addition of distribution channels for public funds, especially focusing on stable products, is not accidental. Under the background of high-quality development of public funds, the criteria for channel selection are changing.

Looking ahead, as investor risk awareness increases, the channel value of stable products is expected to further enhance. For fund companies, key strategies include continuously optimizing stock selection logic for low-volatility dividends, improving the yield enhancement capabilities of fixed income products, and refining risk control systems for stable fixed income+ products to secure channel resources.

Meanwhile, distribution channels also need to focus on product screening, investor suitability management, and after-sales services, truly shifting from “sales-driven” to “asset allocation-driven” approaches. Fangfang Zeng believes, “The expansion of stable products through channels is essentially a process of fund companies and sales institutions jointly guiding investors to establish long-term investment concepts and optimize asset allocation structures.”

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Editor: Gao Jia

【Source: Securities Daily】