Group 1: Market Overview - Investors are facing challenges from fluctuating inflation expectations, shifts in interest rate policies, and geopolitical changes as they approach the crossroads of the global market in 2025 [1] - Structural stocks represented by certain Hong Kong stocks are becoming important for balancing risk and return in investment portfolios [1] Group 2: Performance of Assets - Digital economy stocks have recorded a 45% increase this year, while traditional cyclical stocks show significant divergence in performance [1] - The recommendation is to establish a foundational position using cross-industry ETFs, complemented by individual stocks from specific sectors to enhance returns [1] Group 3: Bond Market Insights - With the Federal Reserve's policy rate reaching 5.25%, short-duration bonds are providing a yield protection of 3.8% [2] - Convertible bonds are highlighted for their unique value in a volatile market due to their hybrid characteristics of equity and debt [2] Group 4: Gold and Alternative Investments - Gold is regaining its status as a traditional safe-haven asset amid increased volatility in digital currencies, with physical gold and gold ETFs recommended for risk management and liquidity [2] - Current gold prices are showing strong support around $1950 per ounce, which is linked to mining stocks [2] Group 5: Portfolio Construction Strategy - A "core + satellite" strategy is suggested, with broad-based index products as core assets making up at least 50% of the portfolio [3] - Industry rotation products are recommended to capture excess returns, while alternative assets are advised to mitigate volatility [3] - The combination of various asset types has shown a 38% reduction in annualized volatility compared to a pure equity portfolio over the past three years [3] Group 6: Dynamic Rebalancing - Investors are encouraged to maintain dynamic rebalancing and assess risk exposure of holdings quarterly, especially in interest rate-sensitive assets [3] - Focus on duration-matched products to address potential policy shift risks is emphasized [3]

Core Viewpoint - The public fund industry is increasingly focusing on the role of performance benchmarks in investment constraints, leading to a more detailed approach in setting benchmarks for multi-asset portfolio products [1][6]. Group 1: Performance Benchmark Details - Recent multi-asset products have significantly enhanced the richness of performance benchmarks, incorporating various asset classes such as U.S. stocks, Hong Kong stocks, commodities, and deposits [2][3]. - The performance benchmark for the newly launched Yongying Yuan Ying Stable Multi-Asset 90-Day Holding product consists of six components, including 70% domestic bonds, 10% A-shares, 5% U.S. stocks, 5% Hong Kong stocks, 5% commodities, and 5% deposits [2][3]. Group 2: Investment Strategy and Philosophy - The detailed benchmarks reflect a shift in investment philosophy from a simple stock-bond pairing to a more diversified and global asset allocation system, especially in the current low-interest-rate environment [1][6]. - The trend towards detailed performance benchmarks indicates a recognition within the asset management industry of the need for a more complex and varied approach to asset allocation [6][7]. Group 3: Communication and Transparency - The refined benchmarks serve as a communication bridge between investors and fund managers, clarifying investment strategies, styles, and performance measurement [5][6]. - Clear asset composition enhances product transparency, helping investors understand risk sources and return drivers, thereby establishing reasonable expectations [4][5]. Group 4: Future Implications - The introduction of multi-asset strategies is expected to transform performance benchmarks from passive references to active guides, influencing strategy design, management constraints, and performance attribution [7]. - The industry is moving towards a more systematic and process-oriented approach to multi-asset research and decision-making, reducing reliance on ad-hoc strategies [4][6].

Core Viewpoint - The public fund industry is increasingly focusing on the role of performance benchmarks in investment constraints, leading to a more detailed approach in setting benchmarks for multi-asset portfolio products [1][4]. Group 1: Benchmark Composition - Recent multi-asset products have significantly enhanced the richness of their performance benchmarks, incorporating various asset classes such as U.S. stocks, Hong Kong stocks, commodities, and deposits [1][3]. - The performance benchmark for the newly launched Yongying Yuan Ying Stable Multi-Asset 90-Day Holding product consists of six components, including 70% domestic bonds, 10% A-shares, 5% U.S. stocks, 5% Hong Kong stocks, 5% commodities, and 5% deposits [2][3]. Group 2: Investment Strategy and Transparency - The detailed benchmarks reflect a shift in investment philosophy from simple stock-bond combinations to a more diversified and global asset allocation approach, especially in a low-interest-rate environment [1][6]. - A clear and detailed performance benchmark enhances product transparency, helping investors better understand risk sources and return drivers, thereby establishing reasonable expectations [4][5]. Group 3: Communication and Decision-Making - The refined performance benchmarks serve as a communication bridge between investors and fund managers, clarifying investment strategies and measuring product performance [5][6]. - The trend towards detailed benchmarks indicates a cognitive evolution in asset allocation concepts within the asset management industry, with a focus on transitioning from "selection experts" to "multi-asset allocation experts" [6]. Group 4: Future Implications - The introduction of multi-asset strategies is expected to transform performance benchmarks from passive references to active guides, becoming integral to the entire product lifecycle management [6]. - The detailed benchmarks will help delineate product risk characteristics, shifting investment goals from return-oriented to risk-adjusted matching [6].

Core Viewpoint - The public fund industry is increasingly focusing on the detailed construction of performance benchmarks for investment, reflecting a shift in investment philosophy from selection to multi-asset allocation [1][6]. Group 1: Performance Benchmark Composition - Recent multi-asset products have performance benchmarks that are more complex, involving up to six asset classes, including A-shares, bonds, US stocks, Hong Kong stocks, commodities, and deposits [2][3]. - The newly launched FOF products have benchmarks composed of at least four asset classes, indicating a significant refinement compared to previous simpler stock-bond combinations [2][3]. - The "Yongying Yuan Ying Stable Multi-Asset 90-Day Holding" fund has a benchmark consisting of six asset classes, with 70% in bonds, 10% in A-shares, 5% in US stocks, 5% in Hong Kong stocks, 5% in commodities, and 5% in deposits [2]. Group 2: Investment Strategy and Transparency - The detailed breakdown of performance benchmarks allows for a more accurate reflection of the investment logic of "fixed income as a base, equity as an enhancement, and alternatives as a supplement" [4]. - Clear asset composition enhances product transparency, helping investors understand risk sources and return drivers, thereby establishing reasonable expectations [4]. - The diversification of benchmarks helps to strengthen investment discipline, requiring fund managers to adopt systematic and process-oriented multi-asset research and decision-making mechanisms [4]. Group 3: Communication and Market Trends - A refined performance benchmark serves as a communication bridge between investors and fund companies, clarifying investment strategies, representing investment styles, measuring product performance, and constraining investment behavior [5]. - Approximately one-third of the over 3,600 FOF and "fixed income+" funds in the market have performance benchmarks composed of at least three parts, indicating a trend towards the refinement of benchmarks in the asset management industry [7]. - The industry is transitioning from a traditional stock-bond binary model to a more diversified and global asset allocation system, recognizing the need for a more complex approach to adapt to changing macroeconomic environments [7].

Core Viewpoint - The article discusses the ongoing transformation of bank wealth management towards diversified asset allocation, driven by low interest rates and asset scarcity, necessitating a restructuring of risk-return strategies [3][8]. Group 1: Regulatory Policies and Industry News - The transition to diversified asset allocation is characterized by a shift from "fixed income" to "fixed income+" strategies, which includes expanding investment regions, asset types, strategies, and scenarios [3][10]. - Recent developments include the launch of the "Xinghui+" multi-asset product system by Huibin Wealth Management, which integrates various investment strategies [7]. - The collaboration between Xingyin Wealth Management and the Straits Equity Exchange Center marks a significant step in equity registration services [7]. Group 2: Market Trends and Performance - As of July, the total market size of wealth management products saw a slight increase of 1.75% to 31.28 trillion yuan, with a year-on-year growth of 5.90% [4]. - The annualized yield for cash management products decreased by 9.81 basis points to 1.35%, while pure fixed income products yielded 1.87%, down by 0.79 percentage points [4]. - The new issuance of wealth management products declined in July, reflecting a contrast to the issuance peak in June, with most performance benchmarks being adjusted downward [4]. Group 3: Product Performance and Standards - The compliance rate for closed-end wealth management products reached 85.89% in July, showing a slight increase from June, while the compliance rate for open-end products was 70.13% [5].

Investment Rating - The report does not explicitly provide an investment rating for the banking wealth management industry Core Insights - The banking wealth management industry is undergoing a transformation towards diversified asset allocation driven by low interest rates and asset scarcity, necessitating a reconfiguration of risk-return strategies [2][12] - The essence of diversified asset allocation is the transition from "fixed income" to "fixed income plus," which includes broadening investment regions, extending asset types, and enhancing investment strategies [3][13] Summary by Sections Regulatory Policies and Industry News Interpretation - The transformation towards diversified asset allocation in banking wealth management is deepening, with new product systems being launched and collaborations with financial institutions being established [11] - The low interest rate environment and asset scarcity are pushing wealth management companies to explore new revenue sources and capture structural opportunities during the interest rate decline [12] Current Status: Scale Growth and Yield Decline - In July, the total market wealth management product scale increased by 1.75% to 31.28 trillion yuan, with a year-on-year growth of 5.90% [23][25] - The annualized yield of cash management products decreased to 1.35%, while fixed income products saw a decline to 1.78% [28][31] New Issuance: Scale Decline and Product Characteristics - The new issuance scale of wealth management products in July fell, with fixed income plus products dominating the market, reflecting a shift towards multi-asset strategies [46][47] - The majority of new product performance benchmarks have been adjusted downwards, indicating a consensus on the long-term low interest rate environment [53] Maturity: Performance Rates - The achievement rate for closed-end products reached 85.89%, while the rate for open-end products was 70.13%, showing a slight improvement from the previous month [55][60]

Core Insights - The global capital markets are undergoing a dual transformation characterized by a "loose monetary cycle" and "structural changes" as of Q3 2025 [1] - The opening of the Federal Reserve's interest rate cut channel, geopolitical reshaping, and breakthroughs in carbon neutrality technology are creating differentiated investment opportunities in stocks, bonds, and gold [1] Equity Assets - The Hong Kong stock market, as an offshore RMB asset hub, is witnessing excess return opportunities driven by self-controllable technology iterations, particularly in the hard technology sector [1] - Semiconductor equipment companies reported a 47% year-on-year increase in R&D investment, while the biopharmaceutical sector has innovative drug pipelines entering Phase III clinical trials [1] - Value investors may focus on undervalued high-dividend stocks, with dynamic PE ratios falling below 8 times [1] Fixed Income Products - With the end of the inverted yield curve for U.S. Treasury bonds, investment-grade credit spreads have narrowed to 120 basis points [1] - Convertible bonds exhibit unique advantages in volatile markets due to their "equity-debt duality" characteristics [1] - High-yield bonds are experiencing increased credit risk premiums due to the restructuring in the real estate sector [1] Precious Metals - Physical gold and digital currencies show a significant negative correlation, with gold prices surpassing $2500 per ounce amid a central bank gold-buying spree [1] - Silver is benefiting from surging demand in the photovoltaic industry, creating a resonance between its industrial and financial attributes [1] - Mining ETFs provide investors with convenient tools for indirect participation in the precious metals market [1] Portfolio Construction Recommendations - An all-weather strategy could allocate 40% to stocks, 30% to bonds, 20% to gold, and 10% to cash [1] - Attention should be paid to policy volatility risks associated with cross-border assets and the opportunities for options hedging arising from increased implied volatility [1]

Core Viewpoint - The article emphasizes the evolution of Fund of Funds (FOF) from merely selecting funds to providing comprehensive asset allocation solutions, highlighting the importance of constructing a robust investment strategy through diversified asset classes [1] Group 1: Building Quality Beta (β) - Quality β serves as the foundation for investment returns, akin to a solid base for a building; without it, even the best strategies cannot sustain value [3] - A diversified approach to asset allocation, incorporating equities, fixed income, gold, and overseas markets, is essential to reduce overall volatility and achieve reasonable returns [3][4] Group 2: Finding Alpha (α) Above Beta - The stability of α is more crucial than its sharpness; investors should focus on sustainable α rather than chasing short-term high returns, which are often unsustainable [4][5] - Historical data indicates that high α can lead to significant volatility, which may ultimately diminish overall returns; thus, a consistent performance is preferred [5][7] Group 3: Matching Risk Tolerance - Rational investing can help mitigate behavioral losses (γ); understanding one's risk tolerance is vital for long-term investment success [8][10] - Investors with lower risk tolerance should favor portfolios with a higher allocation to fixed income assets to reduce exposure to equity market volatility, while those with higher risk tolerance can afford greater equity exposure [10][11]

Core Viewpoint - The discussion emphasizes that in a low-interest-rate environment, wealth management companies must enhance their core investment research capabilities and seek breakthroughs through diversified assets and strategies [1][2] Group 1: ETF and Investment Strategies - ETFs are highlighted as one of the best tools for wealth management companies to participate in the equity market due to their transparency, tradability, large capacity, and convenience [1] - The future strategy for wealth management companies includes effectively utilizing ETFs and public funds to capture Beta or Smart Beta returns in the equity market [1] Group 2: Investor Expectations and Risk Management - Investor expectations have evolved from "rigid repayment" to emphasizing "fixed income," and now to focusing on "absolute returns," indicating a dynamic change in demand [1] - In the context of increasing market volatility, the focus on "stable returns" necessitates attention to how wealth management companies can achieve relatively stable returns under closing price adjustments [1] - Understanding the risk tolerance and duration requirements of investors is crucial for wealth management companies to effectively manage client relationships and expectations [2] Group 3: Challenges in the Low-Interest Rate Environment - The low-interest-rate era presents a significant challenge for the asset management industry, necessitating a focus on providing stable returns [2] - The concept of "asset scarcity" reflects a mismatch in returns, prompting wealth management companies to enhance their core investment research capabilities [2]

Group 1 - The core viewpoint of the article revolves around the trends in passive and active investment strategies, highlighting the importance of adapting to market changes and client needs in asset management [2][5]. - The "passive active" and "active passive" trends are emerging in the passive index investment field, with a focus on enhancing index investments and utilizing a combination of active and passive strategies for new industries [2]. - The company emphasizes the need for high-quality development in public funds, aligning with regulatory pushes, and has made internal adjustments to improve investor experiences and performance [3]. Group 2 - The company has implemented a long-term assessment system based on benchmarks to evaluate fund managers, focusing on their adherence to investment strategies and product styles [3]. - A new internal system has been developed to provide fund managers with real-time insights into portfolio status, trading activities, and performance analysis, enhancing operational efficiency [4]. - The company aims to address client needs by diversifying product offerings and investment strategies, moving away from traditional sales models to better align with investor expectations [5]. Group 3 - The company recognizes the growing acceptance of multi-asset allocation strategies, incorporating low-correlation assets like commodities and overseas investments to improve portfolio performance [6]. - The demand for multi-asset allocation FOF products has surged, indicating a shift in client preferences towards diversified investment solutions [6].