Core Viewpoint - The article emphasizes the significance of the Year of the Horse in Chinese culture, symbolizing progress, ambition, and exploration, while highlighting the commitment of the company to provide professional investment data, practical analytical tools, and independent research support for investors in the upcoming year [4]. Group 1 - The Year of the Horse represents a time for forward momentum and striving for success in investments [4]. - The company aims to assist investors in navigating the market effectively with its resources and support [4].

Group 1 - The article discusses the importance of adjusting investment strategies based on different life stages, emphasizing that financial goals and priorities evolve over time [1] - It introduces the "100 Rule," which suggests that the percentage of stocks or high-risk assets in an investment portfolio should decrease as one ages, starting with 70% at age 30 and dropping to 60% at age 40 [3][4] - The article critiques traditional asset allocation methods for not considering other financial risks in life, such as mortgage payments and living expenses, suggesting a need for personalized adjustments [4][6] Group 2 - For individuals aged 20-30, the focus should be on income generation and savings rather than investment returns, as this is typically a low-wealth stage [8] - This age group is encouraged to develop a habit of regular investing and to understand their risk tolerance through trial and error, as they have a lower cost of making mistakes [8][9] - Regular assessments of risk tolerance are recommended to ensure accurate self-awareness [9] Group 3 - In the 30-40 age range, individuals are likely to have more stable careers and savings, but they also face significant life events that require prioritizing financial goals [10][11] - The article stresses the importance of aligning investments with short-term and long-term financial needs, advising against putting short-term funds into high-risk assets [12] - It highlights the need for careful planning regarding the duration and amount of investments based on upcoming financial requirements [12] Group 4 - For those aged 40-50, the article emphasizes the importance of safety in asset allocation due to increased financial responsibilities and potential crises [16] - It suggests that emergency funds should cover at least one year's worth of expenses to ensure financial stability during unexpected situations [16][19] - The article warns against high-risk investments in the context of high debt levels, as this can lead to financial vulnerability [19] Group 5 - As individuals approach retirement (50-60 years), the article advises a more conservative investment approach, focusing on liquidity to avoid market downturns affecting retirement funds [21] - It notes that retirement asset allocation should be tailored to personal circumstances, including lifestyle desires and health needs [23][27] - The article concludes that asset allocation should be personalized, taking into account individual financial situations, responsibilities, and risk tolerance rather than relying on generic formulas [28]

Macro Economic Overview - The manufacturing PMI for January recorded at 49.3%, down 0.8 percentage points from December's 50.1%, indicating a contraction in manufacturing activity [3] - January's CPI increased by 0.8% year-on-year, while PPI decreased by 1.9%, showing a mixed inflationary trend [3] A-Share Market Performance - A-shares experienced a strong start in January, with the Shanghai Composite Index reaching a high of 4190.9 points, marking a new peak since the September 24 market [4] - The technology growth sectors, particularly AI computing and commercial aerospace, led the market rally due to policy support and increased demand [4] - Major indices showed positive performance in January, with the Shanghai Composite Index and Shenzhen Component Index rising by 3.85% and 5.08%, respectively [4] - Among 31 Shenwan industry sectors, 26 sectors saw gains, with non-ferrous metals, media, and oil & petrochemicals sectors rising over 15% [4] Bond Market Dynamics - The bond market initially showed weakness due to concerns over supply and interest rate expectations but later recovered as liquidity was injected by the central bank [5][6] - The yields on various government bonds decreased in January, with 1-year, 5-year, and 10-year yields falling to 1.30%, 1.58%, and 1.81%, respectively [6] - The overall return of the bond market, as reflected by the China Bond Index, increased by 0.41% in January [6] Global Economic Indicators - The economic conditions in major Western economies remain in the expansion zone, but growth momentum is showing signs of marginal slowdown [7] - The US Markit Composite PMI for January was 52.8, slightly down from December's 53.0, while the Eurozone's PMI fell to 51.5 from 51.9 [7] - Geopolitical tensions, particularly in the Middle East, have driven up international commodity prices, with Brent crude oil prices rising by 14.64% in January [7] Fund Performance Insights - The Morningstar China Open-End Fund Index recorded a 4.77% increase in January, with various fund types showing positive returns [15] - Equity funds, particularly small and mid-cap growth funds, outperformed large-cap funds, with mid-cap balanced and growth funds achieving average returns of 9.74% and 9.13%, respectively [19] - QDII funds also performed well, with commodity funds, global emerging market mixed funds, and Greater China mixed funds recording returns of 17.15%, 13.51%, and 8.69% [20]

Core Insights - The article discusses the significant structural adjustments occurring in the global public fund market by 2025, highlighting the ongoing shrinkage of actively managed open-end funds and the rise of the "ETFization" trend as a core driver for institutional investment strategies, particularly in the US and European markets [1][11]. Group 1: Market Trends - By 2025, the global public fund market is experiencing profound structural changes, with a notable decline in the size of actively managed open-end funds [1][11]. - The "ETFization" trend is becoming a key driver for institutional investment strategies, with actively managed ETFs emerging as the primary issuance force in the market [1][11]. - In the fourth quarter of 2025, the Greater China region saw a significant recovery in stock fund inflows, exceeding $33 billion in a single quarter [1][11]. Group 2: Research and Tools - The article emphasizes the need for institutional investors to have a robust research framework and tools that can penetrate underlying holdings and reach the core of strategies when selecting investment targets [1][11]. - Morningstar Direct is highlighted as a flagship investment research platform that provides comprehensive data on over 63,000 actively managed ETFs, including performance, risk, holdings, and issuance methods [1][11][12]. - The upcoming webinar aims to provide insights into the trends and product evolution in the global public fund market for 2025, focusing on how to utilize Morningstar Direct for in-depth research on overseas actively managed ETFs [4][5][11].

Group 1 - The core viewpoint of the article highlights the significant growth of stock ETFs over the past two years, with a total share increase of 62.24% from 13,707 billion shares at the end of 2023 to 22,238 billion shares by the end of 2025, followed by a decline of 5.64% in January 2026 [2][4][5] - The decline in shares is particularly pronounced in major broad-based ETFs, such as Huatai-PB CSI 300 ETF, which dropped from 888 billion shares to 493 billion shares, and E Fund CSI 300 ETF, which fell from 659 billion shares to 330 billion shares during the same period [5][6] - The increase in institutional investor participation in these ETFs is noted, with a significant rise in their shareholding proportions by the end of Q4 2025, indicating a potential signal of institutional funds withdrawing from broad-based ETFs in January 2026 [6][8] Group 2 - Investors are advised to consider market trends and policy directions in light of institutional fund adjustments, particularly in the context of recent regulatory changes aimed at stabilizing the capital market and fostering a slow bull market [8][10] - The article emphasizes the importance of focusing on the long-term fundamentals of underlying assets for sustainable investment returns, suggesting that investors should assess the professional capabilities of fund research teams and the stability of investment strategies [10][12] - Broad-based index funds like CSI 300 ETF and SSE 50 ETF are favored by institutional investors due to their transparency, lower fee structures compared to actively managed funds, and inherent diversification benefits that reduce non-systematic investment risks [12]

Core Viewpoint - Convertible bonds, known as "convertible corporate bonds," provide a balance of debt protection and equity upside, allowing investors to lock in downside risk while benefiting from stock price appreciation. In the past year, A-shares' recovery has led convertible bond funds to achieve an average annual return of 22.28%, outperforming other fixed-income funds. In a low-interest-rate and volatile bond market, convertible bond funds have garnered significant investor interest. This article introduces two funds that primarily focus on convertible bond strategies, highlighting their differences in asset allocation and security selection, which result in varying risk-return profiles [1]. Group 1: Fund Basic Information - The two funds discussed are the Dongfanghong Ju Li Bond Fund and the Xingquan Convertible Bond Mixed Fund, with the former established in September 2019 and managed by Kong Lingchao, who has 14 years of experience in securities management. The latter has been managed by Yu Miao since January 2019, with 15 years of experience in the same field [3][4]. Group 2: Investment Team - Kong Lingchao has a background in macro interest rates and stock strategy research, while Yu Miao focuses on rights-related assets. Both managers maintain a stable workload, with Kong managing 8 products totaling 25.3 billion and Yu managing 3 products totaling 4.1 billion [4][5]. Group 3: Investment Process - The Dongfanghong Ju Li Bond Fund adopts a bottom-up approach for selecting convertible bonds, while the Xingquan Convertible Bond Mixed Fund has a higher stock allocation limit of 30%. The former can flexibly adjust its convertible bond allocation between 0%-140%, while the latter maintains a stock allocation of 20%-30% and a convertible bond allocation of 50%-65% [7][8]. Group 4: Performance Comparison - Both funds generally maintain lower convertible bond allocation ratios compared to their peers. The Xingquan fund exhibits a more stable stock investment approach, focusing on value style, while the Dongfanghong fund's flexible allocation may underperform during high valuation periods but shows stronger resilience during market volatility [12][13]. Group 5: Fees - Both funds have comprehensive fee rates below the industry average, with the Dongfanghong Ju Li Bond Fund having lower management, custody, and transaction fees compared to the Xingquan Convertible Bond Mixed Fund [15].

Core Viewpoint - The article discusses the rise of Model Portfolios in the U.S. investment advisory industry, highlighting their role in enhancing efficiency and service quality for advisors, allowing them to focus more on client interactions and financial planning [2][4]. Group 1: Definition and Characteristics of Model Portfolios - Model Portfolios allow advisors to "outsource" part or all of the investment management work, enabling them to reference standardized strategies designed by professional institutions [4]. - These portfolios are typically multi-asset but can also focus on single asset classes, such as equities or fixed income, and are designed around specific investment goals like target risk or income orientation [4][6]. - Model Portfolios provide a blueprint for asset allocation and fund selection, allowing advisors the flexibility to adjust based on client needs, unlike traditional one-stop asset management products [7]. Group 2: Providers of Model Portfolios - In the U.S., Model Portfolios are primarily offered by two types of providers: third-party strategy firms and asset management companies [9]. - Third-party strategy firms charge a strategy usage fee, typically between 0.1% and 0.25%, while asset management companies often do not charge additional fees, as they earn from the underlying products [9][11]. Group 3: Adoption and Growth of Model Portfolios - Over 40% of U.S. advisors now use or reference third-party Model Portfolios, with assets managed through these portfolios exceeding $645 billion as of March 2025, marking a 62% increase since June 2023 [24]. - The rapid adoption of Model Portfolios is attributed to changes in advisor fee structures, the flexibility they offer compared to traditional products, advancements in technology, and lower fee levels [26][27]. Group 4: Future Trends in Model Portfolios - The growth of Model Portfolios is expected to focus on tax optimization and customized strategies, as many providers begin to incorporate tax considerations into their offerings [34][38]. - The market for Model Portfolios is maturing, with a decline in the number of new offerings since 2022, indicating a need for differentiation among providers [32].

Core Viewpoint - The article highlights the performance and investment strategy of the E Fund Stable Income Bond Fund, managed by Hu Jian, emphasizing its ability to generate stable and competitive returns through strategic asset allocation and investment selection [3][4][8]. Fund Overview - Fund Code: 110008 - Fund Type: Active Bond - Benchmark Index: CSI Target Conservative - Establishment Date: September 19, 2005 - Fund Size: 387.40 billion [2] - Annual Comprehensive Fee Rate: 1.31%, slightly above the average of 1.27% for similar funds [22]. Investment Strategy - The fund employs a combination of top-down and bottom-up investment approaches, focusing on asset allocation, duration and leverage adjustments, and security selection to achieve excess returns [8]. - Equity investments are primarily allocated around 15%, with a range of 10% to 20%, focusing on undervalued, stable, and liquid large-cap blue-chip stocks [8]. - The fund maintains a flexible allocation of convertible bonds between 0% and 30%, actively engaging during systemic opportunities [8]. - Bond investments are primarily in credit bonds, with a position between 60% and 100%, focusing on high credit quality, mainly AAA-rated bonds [8]. Performance Metrics - As of December 31, 2025, the fund achieved an annualized return of 7.99%, ranking in the top 3% among active bond funds [2][15]. - The fund's volatility during Hu Jian's management period is lower than the average of similar funds, with a risk-adjusted return ranking in the top 4% [15]. Management Team - Hu Jian, with 19 years of investment research experience, has managed the fund since February 2012, supported by a strong research team [4][3]. - Ji Lingyun, the assistant fund manager, has been with E Fund since 2009, specializing in pure bond asset investment [4]. Asset Allocation - As of the latest data, the fund's asset distribution includes: - Stocks: 12.49% (compared to the average of 11.20%) - Bonds: 110.67% (compared to the average of 94.14%) - Cash: 0.30% (compared to the average of 4.79%) [11]. Bond Composition - The bond types and their respective allocations include: - Interest Rate Bonds: 38.33% - Credit Bonds: 40.07% - Convertible Bonds: 2.37% [14]. - Major bond holdings include: - 25国开08: 23.64% - 25国开03: 18.66% - 25国开20: 12.79% [15].

Core Viewpoint - The article discusses the significant growth of ETF products tracking the CSI A500 index and the potential introduction of A500 ETF options in early 2026, prompting investors to consider the long-term fundamentals behind their investment decisions rather than short-term market fluctuations [1][8]. Group 1: Understanding Broad-Based Indices - Broad-based indices are not uniform; differences in compilation rules and characteristics significantly affect their long-term risk-return profiles and performance in various economic environments [3][4]. - The CSI A500 and CSI 300 indices, while both categorized as large-cap balanced styles, have distinct design intentions and compilation paths, with the CSI 300 focusing on large, liquid companies and the CSI A500 emphasizing broader industry representation and sustainability considerations [4][6]. - The CSI A500 includes a more balanced industry distribution and a lower concentration in traditional sectors compared to the CSI 300, which is more focused on core blue-chip assets [4][6]. Group 2: Importance of Index Selection and Tracking Effectiveness - Selecting the right index is crucial, but the effectiveness of the tracking product is key to realizing investment returns, as investors cannot directly invest in indices [9][10]. - Key metrics for evaluating ETF products include tracking deviation and tracking error, which indicate how closely a fund captures the index's returns and the stability of that tracking over time [10][11]. - Factors influencing an ETF's tracking performance include fees, cash drag from dividends and investor redemptions, and the fund manager's operational capabilities [11][12].

Core Insights - The article discusses the significant structural adjustments occurring in the global public fund market by 2025, highlighting the ongoing contraction of actively managed open-end funds and the rise of the "ETFization" trend as a key driver for institutional investment strategies [1][11]. Group 1: Market Trends - By 2025, the global public fund market is experiencing profound structural changes, with a notable shrinkage in actively managed open-end fund sizes [1][11]. - The "ETFization" trend is becoming a core driver for institutional investment strategies, particularly in the US and European markets, where actively managed ETFs are emerging as the primary issuance force [1][11]. Group 2: Fund Flows - In the fourth quarter of 2025, stock fund inflows in the Greater China region significantly rebounded, exceeding $33 billion in a single quarter [1][11]. Group 3: Research and Tools - The article emphasizes the need for institutional investors to adopt a robust research framework and tools that can penetrate underlying holdings and reach the core of strategies when selecting investment targets [1][11]. - The upcoming webinar will provide insights into the global public fund flow landscape for 2025 and demonstrate how to conduct efficient research on overseas actively managed ETF products using the Morningstar Direct terminal [1][4][5]. Group 4: Data and Analysis - Morningstar's database now includes over 6,300 actively managed ETFs, providing comprehensive data on performance, risk, holdings, and issuance methods [1][11]. - The webinar will also analyze the adaptability of ETF strategies under different issuance methods and review the successful experiences of key products [1][11]. Group 5: Morningstar Direct - Morningstar Direct is highlighted as a flagship investment research platform that offers a global investment database, featuring 600,000 funds, stocks, and market indices, widely used for fund selection, due diligence, and ESG research [1][12].