Report Industry Investment Rating - The report does not mention the industry investment rating. Core Viewpoints of the Report - The report proposes an active equity fund product research system for allocation - type funds, aiming to make product research configurable and practical. Allocation - type funds are defined as those that serve allocation goals, focus on controllable excess returns, and provide significant Stable beta + tool attributes [4][9]. - Aiming to beat the portfolio benchmark, an enhanced bottom - position fund pool for the all - market equity - oriented fund index is established, updated quarterly, to provide better risk - return ratio targets for portfolio bottom - position allocation [4][20]. - The bottom - position fund portfolio focuses on achieving a slight victory over the benchmark, with characteristics such as stable operation, style alignment with the benchmark, and high - win - rate to create excess returns [23]. Summary by Directory 1. Allocation - type Funds: Serving Allocation Goals and Providing Stable beta+ - **Product Research System Advancement**: The current fund product research has completed in - depth exploration and full - scale Alpha decomposition of fund products. However, the results often focus on label improvement, making it difficult to serve clear allocation goals. The report suggests advancing to the stage of productizing fund managers' capabilities, making products configurable and practical [8]. - **Providing Allocation Attributes and Serving Allocation Goals**: Any fund that meets allocation goals from the perspective of allocation attributes belongs to the category of allocation - type funds. Different allocation schemes can select different types of allocation - type funds, including those from risk - return, style, investment methodology, and asset - class perspectives. The goal is to select high - quality active equity products for investors' portfolio allocation [11][12]. - **Focusing on Controllable Excess Returns**: The rapid development of ETFs has challenged active equity funds in terms of scale, excess returns, and allocation. Active equity funds should focus on controllable, trackable, and sustainable excess returns, with stock - picking ability as the foundation. Regulatory policies also guide the industry to return to the origin of value creation [13][14][15]. - **Providing Stable beta + Tool Attributes**: Stable beta + funds are active equity products that leverage fund managers' stock - picking abilities and have stable allocation - attribute excess returns. They fill the gap between traditional passive investment and active management, providing better risk - adjusted returns and enhancing portfolio elasticity for institutional investors [16][17]. 2. Allocation - type Funds: Slight Victory over the Benchmark, Enhanced Bottom - position Fund Selection - **Building the Bottom - position around the Benchmark**: For portfolio investors, beating the portfolio benchmark is an important goal. The Wind All - Market Active Equity Fund Index 885001.WI is used as a performance comparison benchmark. The bottom - position fund portfolio aims for a slight victory over the benchmark while meeting the stability requirements [21][22]. - **Selection Method for Slight - Victory Benchmark, Enhanced Bottom - position Funds**: First, the funds need to meet basic conditions such as appropriate scale, long - term equity orientation, and stable fund managers. Then, through style constraints (correlation coefficient with the index ≥ 0.86 and better 1 - year cumulative return) and short - term win - rate selection (monthly win - rate over 60% in the past 6 months), the top 10 funds are selected as the active bottom - position. If there are less than 10 funds, all are included, and no more than 3 products managed by the same fund manager are selected in the same period [24][30]. 3. Results of Slight - Victory Benchmark, Enhanced Bottom - position Fund Selection - **Selection Results**: The latest selection results as of December 31, 2025, show that the fund targets in the portfolio have significant growth attributes, relatively dispersed allocation sectors, and no significant industry labels. The funds have good return indicators and significant excess returns compared to the benchmark [25][27]. - **Performance of the Portfolio**: In the back - testing period (2017/01/01–2026/02/28), the portfolio achieved continuous and stable excess returns, with an annualized return of 13.28% and a maximum drawdown of - 33.38%, significantly better than the benchmark. It has characteristics such as outstanding bear - market defense ability, stable performance in bull markets, and superior risk control. In the long - term, the annual positive - return probability is 70%, and the annual win - rate relative to the benchmark is 80% [33][34][35].

- The report analyzes the changes in public fund configurations and scales in Q4 2025, focusing on active equity funds, mixed bond funds, hybrid bond funds, and pure bond funds[1][2][3] - Active equity funds saw a significant reduction in scale, with a decrease of 182.3 billion yuan, while hybrid bond funds experienced a notable increase in scale, growing by 239.8 billion yuan[1][2][3] - The report highlights the shift in investor preference towards hybrid bond funds due to their moderate risk profile, as opposed to the higher volatility of active equity funds and the lower risk of pure bond funds[1][2][3] - The report provides detailed data on the performance and configuration changes of different types of funds, including the top holdings and sector allocations[1][2][3] - The report also includes information on the issuance of new funds, noting that the issuance of hybrid bond funds reached a new high since 2020[1][2][3]

1. Report Industry Investment Rating - The report does not mention the industry investment rating. 2. Core Viewpoints of the Report - The report proposes an active equity fund product research system for allocation - type funds, aiming to make product research configurable and practical. Allocation - type funds serve allocation goals, focus on controllable excess returns, and provide significant Stable beta+ tool attributes [4]. - The report focuses on the Stable beta+ funds in the sub - sectors of allocation - type funds, and presents a method for selecting such funds, including beta anchoring, Stable optimization, qualitative optimization, etc. [4]. - The selected Stable beta+ funds in the sub - sectors can effectively allocate funds in sub - sectors, becoming good "tool - based" allocation choices and contributing significant excess returns in sub - directions [4]. 3. Summary According to the Directory 3.1 Configuration - Type Funds: Serving Allocation Goals and Providing Stable beta+ - **Provide Allocation Attributes and Serve Allocation Goals**: Any fund that meets allocation goals from the perspective of allocation attributes belongs to the category of configuration - type funds. From different configuration schemes, various types of configuration - type funds can be selected, including sub - sector Stable beta+ funds, core bottom - position Stable beta+ funds, etc. The goal is to provide high - quality targets for investors' portfolio allocation [11][12]. - **Focus on Controllable Excess Returns, Trackable, Sustainable, and Controllable**: The rapid development of ETFs has challenged active equity funds in terms of scale, excess returns, and allocation. Active equity funds should focus on controllable excess returns, with stock - selection ability as the foundation. The regulatory policy also guides the industry to return to the origin of value creation [13][14][15]. - **Provide Stable beta+ Tool Attributes**: Stable beta+ tool - attribute funds are defined as active equity products that exert the true stock - selection ability of fund managers and have stable allocation - attribute excess returns. They can optimize portfolio configuration and enhance returns, filling the gap between traditional passive investment and active management [16]. 3.2 Configuration - Type Funds: Selection of Sub - Sector Stable beta+ Funds - **Beta Benchmark Anchoring: Establishing a Sub - Direction Index Map**: Select sub - sectors and use effective benchmarks to segment and track industry themes, establishing a sub - sector index map. The selection of sub - directions is based on the existing indexes tracked by passive ETFs, aiming to select the best in each sub - sector for configuration [21]. - **Selection Method for Sub - Sector Stable beta+ Funds** - **Correlation Test**: Determine the correlation coefficient threshold according to the correlation between funds and corresponding indexes and the distribution characteristics of funds in different fields, and classify funds within the benchmark range. Use a two - stage threshold method to ensure the flexibility and dynamic optimization of coefficients [30][31][35]. - **Tiered Optimization Method Test**: Select tiered indicators (information ratio > excess return > tracking error, mean > standard deviation) according to the distribution of rolling tracking error, rolling information ratio, and rolling excess return of funds in each sub - field. Establish tiered sorting rules and verify the tiered results [39][40][44]. - **Qualitative Optimization**: Qualitative screening mainly considers three dimensions: stable matching, long - term in - depth cultivation, and long - term layout, emphasizing the long - term stability of fund managers [56]. 3.3 Configuration - Type Funds: Results of Selecting Sub - Sector Stable beta+ Funds - **Sub - Sector Stable beta+ Funds in the Cycle and Technology Sectors**: Based on the established sub - sector index map, select Stable beta+ funds in sub - directions and update them monthly. Present the matching results of sub - sector Stable beta+ funds in the cycle and technology sectors in December 2025, which can be used as good configuration targets for the satellite positions of the current portfolio [57][65]. - **High - Win - Rate Sub - Sector Stable beta+ Funds**: Introduce the win - rate indicator to further select the best from the Stable beta+ funds in sub - sectors. Select funds with a monthly win - rate of 67% as high - win - rate sub - sector Stable beta+ funds. These funds can effectively allocate funds in sub - sectors and cross - verify the accuracy of the screening results [68][72].

Core Insights - In 2025, the FOF (Fund of Funds) market saw improved performance, with median returns for top-performing products reaching 12.89% and an arithmetic average of 11.83% [1] - A significant disparity in returns was noted, with five FOF products achieving total returns exceeding 50% during the year [1] - The standout performer was Guotai Optimal Navigation One-Year Holding, which led with an annual return of 66.14% [1] Performance Analysis - Several FOF products, including E Fund Advantage Return A and Guotai Industry Rotation A, also reported annual returns above 50%, indicating strong performance in equity markets [1] - High-performing FOFs demonstrated a clear thematic focus in their investment strategies rather than a uniform approach [1] Investment Strategies - Certain FOFs concentrated on distinctive index funds to amplify the market elasticity of specific assets, benefiting from strong trends in precious metals [2] - Others, like E Fund Advantage Return, focused on actively managed equity funds, particularly in technology sectors, showcasing a strategy to achieve excess returns through active management [2] Market Context - The overall recovery in FOF performance in 2025 was closely linked to improvements in the equity market environment, with a stabilization and rebound in large-cap equities supporting the net asset value of underlying FOF assets [2] - The clear structural trends in the market allowed FOFs to effectively leverage their asset allocation flexibility, resulting in notable returns for some products [2]

Core Viewpoint - The report indicates a shift in the allocation of actively managed mixed equity funds towards the Science and Technology Innovation Board and Hong Kong stocks, with increased investments in the pharmaceutical and electronics sectors [1][2]. Group 1: Allocation Analysis - As of June 30, 2025, actively managed mixed equity funds had a market value allocation of approximately 54.52% in the Shanghai and Shenzhen main boards, a decrease of 6.22% from December 31, 2024 [1]. - The allocation in the Shanghai and Shenzhen main boards was 31.55% and 22.97%, respectively, down by 2.70% and 3.51% compared to the end of 2024 [1]. - The allocation in the ChiNext, Science and Technology Innovation Board, and Hong Kong stocks increased to 15.38%, 14.26%, and 15.59%, respectively, with increases of 0.19%, 1.88%, and 3.99% [1]. Group 2: Holding Characteristics - As of June 30, 2025, the top 1% of stocks held by actively managed mixed equity funds accounted for approximately 30.06% of the total stock investment value, a slight decrease from 31.51% in the 2024 annual report, indicating a minor reduction in "herding" behavior [2]. - The top ten holdings included two consumer electronics stocks and two internet stocks, with the remaining six from sectors such as lithium batteries, liquor, home appliances, metal mining, optical modules, and innovative pharmaceuticals [2]. Group 3: Industry Configuration - The top five industries for actively managed mixed equity funds as of June 30, 2025, were electronics, pharmaceuticals, electric power equipment, automotive, and food and beverage [2]. - Excluding passive changes due to industry performance, the report highlights that funds actively increased their holdings in pharmaceuticals, electronics, media, and non-bank financial sectors, while significantly reducing their allocation in the electric power equipment sector [2]. Group 4: Turnover Rate Analysis - The overall turnover rate for actively managed mixed equity funds in the first half of 2025 was 140.81%, an increase of 12.15% compared to the second half of 2024 [3]. - Flexible mixed funds had the highest turnover rate at 157.08%, although this was a decrease from the previous period [3]. - In contrast, balanced mixed funds had a lower turnover rate of 125.23%, while the turnover rate for actively managed open-end equity funds increased by approximately 7.32%, marking the smallest increase among fund types [3].

Core Viewpoint - The article emphasizes the importance of stable investment strategies in the face of declining investment returns, suggesting that investors should not panic and instead consider strategic asset allocation to optimize their portfolios [1] Group 1 - The article discusses the current trend of declining investment returns, highlighting that many investors are feeling uncertain about their financial strategies [1] - It suggests that a diversified investment approach can help mitigate risks associated with lower returns, encouraging investors to explore various asset classes [1] - The piece offers practical tips and insights for investors to enhance their portfolio performance, focusing on the importance of long-term planning and adaptability [1]

Group 1 - The market is currently experiencing a bifurcation, with small-cap stocks performing well while blue-chip stocks remain stagnant [5] - Bank stocks are an exception but are showing signs of weakness recently [6] - The prevailing sentiment among some market participants is that being conservative is a sign of laziness, which can mislead new investors [7] Group 2 - The absence of a significant rise in the CSI 300 index indicates that a true bull market cannot be declared; the current situation is merely a structural market [8] - Small-cap stocks are perceived as performing well, but this is misleading as they have also faced significant declines in the past [10] - Comparing historical peaks, the CSI 2000 index has dropped 29.18% and the CSI 300 has dropped 21.21% since their 2015 highs, indicating that small-cap stocks have underperformed more severely [12] Group 3 - New investors are encouraged to engage in extensive reading and learning about investment principles, market history, and financial analysis [13] - The notion that stocks related to popular themes can sustain high valuations indefinitely is criticized as a form of indoctrination rather than genuine learning [13] - The primary reason for retail investors' losses is buying at high prices, which can be avoided by not chasing hot stocks [13]

Core Viewpoint - The article discusses the current distribution of market capitalization among major indices in the A-share market, highlighting a significant decline in the proportion of the CSI 300 index compared to other indices, particularly in the context of recent market volatility and liquidity issues [2][3][5]. Market Capitalization Distribution - As of August 8, the CSI 300 index accounts for only 45.75% of the total A-share market capitalization, a notable decrease from previous levels [3][5]. - The distribution of free float market capitalization among major indices is as follows: CSI 300 at 19.82 trillion, CSI 500 at 7.22 trillion, CSI 1000 at 6.77 trillion, CSI 2000 at 5.94 trillion, and the remaining micro-cap stocks at 3.57 trillion [5]. Historical Context and Volatility - The article references significant drops in the CSI 2000 index, including a 12.83% decline in a single day in April and a cumulative drop of 35.86% over 54 trading days from late 2023 to early 2024 [10][11]. - The author suggests that a rapid decline in micro-cap stocks relative to the CSI 300 could occur again, drawing parallels to past market behaviors [13][14]. Investment Strategy and Risk Management - The article emphasizes the importance of maintaining a balanced portfolio that includes both dividend stocks and micro-cap stocks, suggesting that investors should be prepared for potential downturns in micro-cap stocks [19][20]. - It highlights two specific micro-cap funds, the Guotai Junan CSI 1000 Index Fund and the Nuon Multi-Strategy Fund, showcasing their performance and the potential for significant returns following market corrections [22][25]. - The article advocates for a strategic approach to investing in micro-cap stocks, suggesting that while volatility and drawdowns are expected, they can lead to substantial long-term gains if managed correctly [27][29].

Investment Rating - The report maintains an "Overweight" rating for the financial products sector [1]. Core Views - The report expresses a viewpoint of "not fearing adjustments, expecting wide fluctuations" in the market [1][17]. Summary by Sections A-share Market Overview (July 28 - August 1, 2025) - The top three broad indices were: - Wind Micro-Pan Daily Equal Weight Index (1.09%) - Sci-Tech Innovation Index (0.65%) - Sci-Tech 100 (0.52%) - The bottom three broad indices were: - North Certificate 50 (-2.70%) - Dividend Index (-2.67%) - China Securities Dividend (-2.65%) [10][11]. A-share Market Outlook (August 4 - August 8, 2025) - The monthly macro model score for August is 0, with a historical probability of 75% for an increase, indicating a high likelihood of continued upward movement in the A-share market [24]. - The technical timing model shows that the Wind All A Index has a risk level of 103.88, indicating an overheated market, which may lead to increased volatility [17][21]. - The report suggests that the market may experience wide fluctuations, but structural opportunities will continue to emerge [20]. Fund Allocation Recommendations - The report recommends a balanced ETF allocation strategy, considering the current market conditions and potential for future recovery [5][20]. Risk Trend Model Results - As of August 1, 2025, the top three broad indices in the risk trend model were: - Wind Micro-Pan Daily Equal Weight Index (26.99) - China Securities Dividend (26.91) - North Certificate 50 (26.68) - The bottom three were: - ChiNext Index (14.51) - CSI 300 (15.78) - Shenzhen Component Index (16.69) [32][36]. Style Index Model Results - As of August 1, 2025, the top three style indices were: - Large Cap Value (24.87) - Mid Cap Growth (23.18) - Mid Cap Value (21.32) - The bottom three were: - Financial (7.69) - Stability (13.16) - Cycle (15.14) [42][46]. Industry Index Model Results - As of August 1, 2025, the top three industry indices were: - Food and Beverage (58.54) - Banking (40.70) - Beauty and Personal Care (39.96) - The bottom three were: - Non-ferrous Metals (13.27) - Composite (13.71) - Electric Power Equipment (15.80) [53][57].

Group 1: Overview of Public FOF Funds in Q2 2025 - As of Q2 2025, a total of 518 FOF products have been established, with a combined scale of 166.198 billion yuan, representing a 10.01% increase compared to Q1 2025 [1][6][9] - The scale of different types of FOFs in Q2 2025 is as follows: 92.091 billion yuan for bond-type FOFs, 32.454 billion yuan for balanced-type FOFs, and 41.652 billion yuan for equity-type FOFs, with median returns of 1.20%, 1.76%, and 2.62% respectively [1][6][16] Group 2: FOF Fund Manager Preferences - The most held active equity funds by FOFs in Q2 2025 are Dachen Gaoxin A, Fuguo Stable Growth A, and Bodao Growth Zhihang C, with the largest holdings being Dachen Gaoxin A, Yifangda Kerong, and Yifangda Information Industry Selected C [2][23] - In the bond fund category, the most held funds are Yifangda Suifeng Tianli A, Guangfa Pure Bond A, and Yifangda Credit Bond A, with the largest holdings being Boshi Credit Preferred A, Yifangda Suifeng Tianli A, and Boshi Credit Pure Bond A [2][23] Group 3: Changes in Fund Allocations - Compared to Q1 2025, the most net increased active equity funds by FOFs in Q2 2025 are Dachen Gaoxin A, Huashang Yuanjian Value C, and Qianhai Kaiyuan Gold and Silver Jewelry A, with the largest net increase in scale for Jiao Yin Technology Innovation C, Yifangda Smart Manufacturing Advantage C, and Yifangda Supply-side Reform [3][39] - In the bond fund category, the most net increased funds are Xingquan Stable A, Huatai Bairui Seasonal Red A, and Fuguo Industrial Bond A, with the largest net increase in scale for Boshi Credit Preferred A, Boshi Credit Pure Bond A, and Boshi Anyue Short Bond A [3][39] Group 4: FOF Fund Managers - The top three active equity fund managers with the most FOF allocations are Liu Xu, Fan Yan, and Xu Yan, while the top three "fixed income +" fund managers are Wang Xiaocheng, Peng Chengjun, and Zhang Ting [4][23] Group 5: FOF Stock Investment Situation - As of Q2 2025, 149 FOFs have directly invested in stocks, with the highest proportion of stock investments in balanced-type FOFs, followed by equity-type FOFs [5][6] - The top three stocks held by FOFs are Ningde Times, Changjiang Electric Power, and Zijin Mining, with the highest market value held in Ningde Times, Haomai Technology, and Wuliangye [5][6]