Core Viewpoint - The article discusses the transformation of the public fund industry towards a high-quality development model, emphasizing the need for a comprehensive overhaul of the investment research system, termed "industrialization" by the company [1][2]. Group 1: Industrialization Strategy - The core of the "industrialization" strategy is to shift from reliance on individual fund managers to a team-based, systematic organizational capability, aiming for more sustainable and stable investment performance [1][2]. - The company has established four major production lines: equities, bonds, multi-assets, and quantitative strategies, focusing on three action directions: specialization, industrialization, and digital intelligence [2][5]. Group 2: Specialization and Team Collaboration - Specialization is seen as the foundation of the system, requiring research personnel to deeply engage in specific sub-sectors to develop superior market insights [3]. - The company has formed a dedicated technology team consisting of 13 fund managers and 12 researchers, each focusing on different sub-sectors to build a competitive advantage in the industry [3]. Group 3: Industrialization Process - The industrialization process aims to address communication issues among investment management professionals by implementing a "Five Elements Model" to unify internal research frameworks and investment processes, significantly improving decision-making efficiency [3][4]. - The adoption of standardized processes has led to a high acceptance rate of stock recommendations, with an average of two out of three recommendations being adopted by fund managers [3]. Group 4: Digital Intelligence Transformation - The company is integrating AI and large models into its investment research processes, which has contributed significantly to its performance, particularly in its top-ranked convertible bond fund [4]. - The long-term vision includes creating a new ecosystem of human-machine collaboration, leveraging modern technological advancements to transform fund management [4]. Group 5: Multi-Asset Strategy - Multi-asset allocation is becoming a core competency for asset management, with the company establishing an industrialized process that breaks down strategy development into design, production, assembly, and testing phases [5]. - The design phase focuses on customized asset allocation and risk budgeting, while the production phase consolidates research efforts across various asset classes [5]. Group 6: Future Investment Trends - The company anticipates significant investment opportunities in the domestic hardware sector, following a trend of replicating overseas hardware and software cycles [6]. - The bond market outlook suggests a continuation of the low-interest-rate environment, with long-end yields approaching levels that present marginal allocation value [6].

Core Viewpoint - The article emphasizes the importance of multi-asset public funds in the current volatile capital market, highlighting the success of the Huaan Yingrui Stable Preferred Fund as a benchmark in multi-asset investment strategies [1][2]. Multi-Asset Strategy - Huaan Yingrui Stable Preferred Fund employs a multi-asset strategy that combines risk parity and diverse asset classes to optimize returns while controlling risk [2][3]. - The fund's approach includes a risk parity model that dynamically adjusts asset weights based on their volatility, ensuring equal risk contribution from stocks, bonds, and commodities [2][3]. Asset Matrix Construction - The fund covers eight asset categories, including A-shares, pure bonds, overseas equities, commodities, and REITs, allowing it to find yield opportunities in various macroeconomic environments [3]. - A monthly rebalancing mechanism is in place to maintain risk balance, adjusting asset allocations based on price movements and market conditions [3]. Research and Team Expertise - Huaan Fund leverages its comprehensive product offerings and internal resources to enhance the efficiency of the FOF's asset allocation [4]. - The FOF team, led by multi-asset allocation expert Lu Jingchang, focuses on strategic and tactical asset allocation to improve risk-return profiles [5]. Performance Metrics - As of June 30, 2023, the Huaan Yingrui Stable Preferred Fund achieved a return of 5.59% since its inception on May 19, 2023, outperforming its benchmark of 5.19% and the peer index of 3.32% [3].

Core Viewpoint - The article discusses the resignation of Wang Hui, the Deputy General Manager of Xinyuan Fund, who has transitioned to a senior specialist role within the company due to work arrangements. This change reflects the ongoing adjustments in the management structure of the fund [2][4]. Company Overview - Xinyuan Fund was established in August 2013, initiated by Nanjing Bank and Nanjing Gaoke Co., Ltd., with a registered capital of 1.7 billion RMB and headquartered in Shanghai [6]. - As of the end of Q2 2023, Xinyuan Fund's total asset scale reached 211.784 billion RMB, with over 60% in bond funds and over 30% in money market funds [2][8]. Management Changes - Wang Hui has been with Xinyuan Fund since its inception, serving in various roles including Chief Marketing Officer and Assistant General Manager before becoming Deputy General Manager in April 2016. He has held the Deputy General Manager position for over nine years [6][8]. - The current management team includes Long Yi as Chairman, Yu Jingliang as General Manager, and Li Xiaoyan as Chief Supervisor, with three Deputy General Managers: Wu Ju, Zhang Pengfei, and Yang Xiaoyu [6][7]. Fund Performance and Structure - Xinyuan Fund's asset net value has significantly increased from 89.704 billion RMB in mid-2022 to 211.784 billion RMB by mid-2023, improving its industry ranking from 55th to 36th [8]. - The fund's product structure shows that 54 bond products account for 64.6% of the total scale, while 2 money market funds make up 33.85%. Together, these two categories represent over 98% of the total fund scale [9]. - The growth in management scale is primarily driven by the expansion of fixed-income products, with bond fund scale increasing by 76.729 billion RMB and money market fund scale rising by 44.046 billion RMB since mid-2022 [9]. New Fund Initiatives - In the second half of the year, Xinyuan Fund launched 9 new funds, including 1 FOF, 3 mixed funds, and 5 index equity funds. The company aims to enhance its passive investment capabilities while consolidating its active management strengths [10].

Core Insights - The public FOF (Fund of Funds) industry in China has experienced significant growth in 2023, with a notable increase in scale and popularity among investors, particularly in the context of a rising equity market [1][2][4] - The Huazhong Yingrui Stable Preferred 6-Month Holding Period FOF has emerged as a standout product, benefiting from a multi-asset allocation strategy that has led to substantial growth in its scale [1][7][11] - The evolution of the FOF industry reflects a shift from single-asset focus to multi-asset strategies, allowing for better risk management and enhanced returns [6][11] Industry Development - The FOF industry in China has gone through cycles of growth and decline since its inception in 2017, with a significant boom in 2021 driven by regulatory changes and a shift away from guaranteed bank products [2][4] - After a period of underperformance, fund companies have focused on optimizing investment portfolios and innovating product designs to meet diverse investor needs [2][3] - The demand for stable investment options has increased, leading to a resurgence in the popularity of multi-asset FOF products [3][4] Product Strategy - The Huazhong Yingrui Stable Preferred FOF employs a risk parity model to balance the risk contributions of various asset classes, aiming for stable performance [7][11] - The product has undergone significant upgrades, expanding its asset classes and incorporating new strategies to enhance yield and adaptability in different market conditions [8][9][10] - The diversification of assets, including international equities and commodities, allows the FOF to seek incremental returns while managing risks effectively [9][10] Team and Expertise - The success of the Huazhong Yingrui FOF is attributed to the experienced team at Huazhong Fund, which emphasizes a systematic approach to asset management and continuous evolution of investment strategies [10][11] - The fund manager, Lu Jingchang, has extensive experience in the industry, contributing to the product's robust performance through strategic asset allocation and risk management [10][11]

Group 1 - The core viewpoint of the article emphasizes the growing maturity of index-based investment in the domestic market and the increasing recognition of multi-asset strategies, with index tools becoming essential for implementing asset allocation strategies [1][2] - The newly launched ETF-FOF product by Xingzheng Global Fund aims to provide a diversified asset allocation strategy, with a performance benchmark that includes various asset classes such as A-shares, overseas stocks, domestic bonds, Hong Kong stocks, and gold [2][3] - The long-term return of the performance benchmark is considered substantial, with improved risk resistance compared to traditional stock-bond combinations, focusing on generating excess returns [3] Group 2 - The team at Xingzheng Global Fund plans to utilize active style exposure in their FOF management, leveraging their expertise in equity investment to enhance returns beyond the benchmark [4][5] - The ETF products selected will primarily be those with large scale and good liquidity, facilitating the achievement of benchmark tracking goals, while also taking advantage of arbitrage opportunities during market volatility [5][6] - The development direction for FOF is to provide multi-asset allocation solutions, with plans to gradually incorporate more asset classes into their portfolio based on established strategies [7][8]

Core Viewpoint - The article discusses the increasing maturity of index-based investment in the domestic market and the launch of the ETF-FOF strategy by Xingzheng Global Fund, aimed at utilizing index tools for multi-asset allocation strategies [1][2]. Group 1: ETF-FOF Strategy Launch - Xingzheng Global Fund's multi-asset allocation department has initiated the ETF-FOF strategy, managed by experienced FOF fund manager Liu Xiao and index investment expert Liu Shuiqing [1]. - The performance benchmark for the new ETF-FOF product is a composite of various indices, including the CSI A500 Index (60%), MSCI World Index (15%), China Bond Composite Index (15%), Hang Seng Index (5%), and Shanghai Gold Exchange Au99.99 spot contract closing price (5%) [2]. - The strategy aims to create a more diversified asset portfolio compared to traditional stock-bond combinations, especially given the low returns on bonds and cash assets [2]. Group 2: Active Management and Investment Approach - The team plans to utilize index tools to express market factor views while also taking advantage of pricing discrepancies in extreme market conditions [3]. - In the overseas equity investment segment, the team will focus on basic tracking and capitalize on arbitrage opportunities due to QDII investment quota limitations [3]. - The selection of ETF products will prioritize the capabilities of the index management teams behind them, focusing on tracking error, liquidity, and fee ratios [3]. Group 3: Market Position and Future Direction - The ETF-FOF product is not new in the public fund industry, but the team aims to revitalize the strategy by focusing on multi-asset allocation rather than solely on sector rotation [4]. - Xingzheng Global Fund's multi-asset allocation department has over five years of FOF investment management experience, and the team is committed to providing a one-stop solution for fund product selection [5]. - The future direction for FOF development includes expanding the range of asset classes and continuously improving tracking and return enhancement based on established performance benchmarks [5].

Core Viewpoint - The article discusses the importance of multi-asset products in the context of China's regulatory push for high-quality development of public funds, emphasizing the need for long-term absolute return capabilities in fund products [2][9]. Group 1: Overview of Multi-Asset Products - The U.S. multi-asset index market has evolved significantly since the Pension Protection Act of 2006, which established target date funds as default investment options for retirement plans [4][12]. - Various types of multi-asset indices have emerged, including constant proportion, risk parity, target risk, target date, and macro rotation indices, each with distinct methodologies and asset allocation strategies [14][18][20]. Group 2: Current State of Multi-Asset Products in China - Domestic actively managed multi-asset products are characterized by an increase in quantity but lack significant scale, indicating a disconnect between fund managers' intentions and investors' acceptance [5][6]. - Performance issues have contributed to low investor acceptance, with many active multi-asset products underperforming their benchmarks over the past two and a half years [5][6]. Group 3: Future Development Paths - The article suggests that "indexation" could be a viable strategy for the development of multi-asset products in China, which could reduce the complexity of benchmark selection and management pressure [5][6]. - Future development may involve enhancing the diversity of underlying indices and promoting the adoption of multi-asset index products, primarily focusing on constant proportion and target risk index products [6][20]. Group 4: Performance Analysis of U.S. Multi-Asset Indices - The article highlights that the best-performing U.S. multi-asset indices in terms of risk-adjusted returns include the S&P MARC 5% Index, S&P MAESTRO 5 Index, and S&P PRISM ETF Tracker, with the latter achieving an annualized return of 9.7% since 2010 [20][22]. - The performance of these indices varies significantly based on market conditions, with risk parity indices often outperforming in volatile years and macro rotation indices excelling during periods of high inflation [20][21].

Core Viewpoint - The discussion around a bull market is increasing as the Shanghai Composite Index surpasses 3700 points, but stock selection remains challenging due to the need for safety margins and rapid industry rotation [1] Group 1: Fund Performance - Guangfa JiYuan Bond Fund has achieved positive annual returns in all eight years since its establishment in January 2017, with a maximum drawdown controlled within 6%, significantly better than the average of 10.88% for similar funds [2] - The fund's five-year return rate is 25.37%, ranking in the top 15% of its category [2] Group 2: Investment Strategy - The fund manager, Liu Zhihui, employs a combination of top-down and bottom-up approaches for asset allocation, maintaining a stable stock investment ratio of 15%-20% over the past five years [2] - In bond investments, the focus is primarily on high-grade credit bonds, with an average duration of less than three years, but can be extended during favorable market conditions [2] Group 3: Market Outlook - Liu Zhihui holds a relatively optimistic view for the A-share market in the second half of the year, believing it is transitioning from "strong reality, weak expectations" to positive expectations, which is beneficial for large-cap stocks [3] - The preferred allocation strategy includes a balanced approach, focusing on sectors such as overseas expansion, resources, large financials, leading manufacturing, and innovative pharmaceuticals, selecting competitive companies with market share expansion and valuation protection [3]

Market Overview - The A-share market experienced dramatic fluctuations this year, initially benefiting from breakthroughs in artificial intelligence and strong government support for emerging industries, leading to a quick recovery [1] - Following a cooling period, the market shifted towards defensive investment styles, with many investors taking profits, but later saw renewed activity in sectors like new consumption and innovative pharmaceuticals [1] - Globally, indices such as the Korean Composite Index, German DAX, and UK FTSE 100 performed well in the first seven months of the year, while gold remained a popular asset class [1][2] Investment Environment - Investors are facing a complex market environment, leading to indecision and cautious behavior due to fears of missing out on potential gains while also being wary of market volatility [2] - The current market conditions highlight the need for investment products that can provide a sense of security and capitalize on various asset classes without excessive risk exposure [3][15] FOF Products - In the U.S., $3.4 trillion has been allocated to Fund of Funds (FOF) products, indicating a significant trend towards diversified investment strategies [4][5] - FOFs offer a diversified investment approach by investing in multiple funds with different strategies, which helps mitigate non-systematic risks [6] - The convenience of FOFs allows investors to save time and effort in selecting individual funds, as professional teams conduct thorough research and analysis to create optimized portfolios [7] Domestic FOF Market - The domestic FOF market has seen rapid growth since its inception, with increasing public awareness and a variety of underlying assets available for investment [9][12] - The success of products like Huaan Yingrui demonstrates the effectiveness of multi-asset strategies, achieving significant growth in assets under management [12][14] Management and Strategy - The management team behind FOF products, such as Huaan Yingrui, employs a systematic asset management approach, focusing on strategic asset allocation and risk parity to enhance risk-return profiles [16][18] - The investment strategy aims to capture upward potential while preparing for short-term volatility, aligning with current market needs for stability and growth [18]

Core Viewpoint - The article discusses the dramatic fluctuations in the market throughout the year, highlighting the impact of AI advancements and government support for emerging industries on A-shares, followed by a shift towards defensive investment styles as investors took profits. The article emphasizes the growing popularity of multi-asset investment strategies, particularly FOF (Fund of Funds) products, in both the U.S. and China as a response to market uncertainties [1][4][9]. Market Performance - A-shares initially rebounded due to significant breakthroughs in AI and supportive government policies, with sectors like AI models and humanoid robots performing well. However, the market cooled down as investors began to take profits, leading to a resurgence in new consumption and innovative pharmaceuticals [1]. - Global asset performance in the first seven months of the year showed strong results for indices such as the Korean Composite Index (+35.63%), gold (+34.05%), and the Hang Seng Index (+25.51%), with the Hang Seng Technology Index also performing well (+22.89%) [2]. Investor Sentiment - Investors are experiencing a dilemma between the fear of missing out on a bull market and the anxiety of potential market downturns, leading to cautious and indecisive investment behaviors [2]. FOF Product Growth - In the U.S., FOF products have grown to a scale of $3.4 trillion by the end of 2024, with 1,317 funds available, becoming a mainstream investment method. This growth is attributed to the diversification benefits of FOFs, which reduce non-systematic risks by investing in various funds with different strategies [4][5][9]. - The development of FOFs in the U.S. began in 1985 with the launch of the first public FOF product, leading to significant growth in the 1990s as more pension plans entered the market [4][5]. Domestic FOF Market - The domestic FOF market has rapidly developed since the first public FOF was issued in 2017, overcoming initial challenges related to public awareness and acceptance. The market has matured, with increased recognition and a variety of underlying assets available for investment [9][11]. Investment Strategy - The article highlights the importance of multi-asset strategies in the current market environment, with products like Huazhong Yingrui demonstrating effective asset allocation across various categories, including A-shares, pure bonds, U.S. stocks, gold, and commodities [13][14]. - The management team behind Huazhong Yingrui employs a systematic asset management approach, focusing on strategic and tactical asset allocation to optimize risk-return profiles [16][17]. Performance Metrics - Huazhong Yingrui has shown promising performance, with a return of 5.59% since its inception on May 19, 2023, outperforming its benchmark and similar funds [11][13].