Private Placement Funds Average Return Rate Approaching 7% in First Two Months, Equity Strategy Shines

Source: Securities Times Network Author: Wang Jun

Private equity funds in 2026 are off to a strong start, delivering impressive overall results. Data from Private Equity Ranking Network shows that by the end of February 2026, there were 12,270 private equity securities fund products with performance records in the market, with 10,435 achieving positive returns, accounting for 85.04%, and an average return of 6.89%.

Looking at the five core strategies, performance shows clear differentiation. As the most actively participated category in the private market, stock strategies have become the main engine driving overall returns. Data indicates that there are 7,881 stock strategy funds with performance records, of which 6,657 achieved positive returns, with a positive return rate of 84.47% and an average return of 7.78%, significantly higher than the market average. This strong performance is partly due to the overall profitability of the A-share market since 2026, creating a favorable environment for stock strategy private funds. Additionally, 2026, as the start of the 14th Five-Year Plan, saw continued increases in domestic demand policies, ongoing industrial upgrades, and the emergence of structural opportunities in AI commercialization, Chinese companies going global, and resource industry upgrades.

Multi-asset strategies demonstrate a “steady progress” in returns, with all performance indicators close to or slightly above the market average. Data shows that there are 1,596 multi-asset strategy funds with performance records, with 1,395 achieving positive returns, a positive return rate of 87.41%, and an average return of 6.88%. In 2026, with structural opportunities in equities, commodities, and bonds markets, multi-asset private funds flexibly combine stocks, bonds, commodities, and other assets to seize investment opportunities across markets. They also effectively reduce portfolio volatility through asset hedging, achieving a good balance of return and risk.

Although fund-of-funds are the smallest among the five strategies with only 342 funds, they boast the highest win rate, with a 94.74% positive return rate and an average return of 6.22%. The high success rate of fund-of-funds stems from their “funds within funds” model, which selects high-quality private funds with different strategies and managers to diversify risks through portfolio allocation.

Futures and derivatives strategies show a “stellar top-tier performance with overall divergence,” and overall performance is slightly weaker compared to the other four strategies. There are 1,357 futures and derivatives funds, with 1,095 achieving positive returns, a positive return rate of 80.69%, and an average return of 4.93%. Since 2026, increased volatility in the commodities market has significantly boosted trading activity in futures markets, providing abundant trading opportunities for futures and derivatives private funds. Some products have achieved substantial gains through precise market trend judgment and flexible hedging. However, the high volatility environment also increases trading difficulty, with some products underperforming due to poor market timing and mismanagement of positions, lowering the overall positive return rate for the strategy.

Bond strategies continue to embody the traditional characteristics of low risk and low return, making them a preferred choice for stable allocation in private markets. Data shows there are 1,094 bond strategy funds, with 964 achieving positive returns, a positive return rate of 88.12%, and an average return of 2.45%. Since 2026, the bond market has experienced wide fluctuations, with overall interest rate volatility narrowing, and bond prices lacking strong upward momentum, resulting in generally lower returns for bond strategies. On the other hand, credit bonds have performed consistently better than rate bonds, with short- and medium-term credit bonds favored for their low volatility and higher coupons, making coupon strategies attractive investment options in the bond market. These strategies provide relatively stable income sources for bond private funds and help maintain a high positive return rate.

(Edited by: Wen Jing)

Keywords: Private Equity